Business

Appraising Nigeria’s Business Climate Since 2016

Published

5 years ago

April 10, 2019

The Federal Government in 2016 established the Presidential Enabling Business Environment Council (PEBEC), to boost Nigeria’s Ease of Doing Business (EoDB) reforms.
To give teeth to EoDB chaired by Vice President Yemi Osinbajo; in 2017, as acting President, Osinbajo signed the Executive Order (E001).
E001 was aimed at giving the desired zing to the implementation of the Voluntary Assets and Income Declaration Scheme (VAIDS).
PEBEC’s model colligates with global best practice and includes a strong performance tracking element that is measured by the World Bank Ease of Doing Business Index (DBI), which is reported annually.
The DBI is an annual ranking that objectively assesses prevailing business climate conditions across 190 countries based on EoDB indicators.
Speaking at the 2nd PEBEC Awards, held recently in Abuja, Osinbajo said that the Federal Government had implemented no fewer than 140 reforms on ease of doing business in the past three years.
He said he was delighted to celebrate the phenomenal successes of the PEBEC reforms and recognition of those who made it possible.
“Our incredibly selfless and committed private sector partners and the sterling performance of many in the public sector; in the past three years, Nigeria has implemented more than 140 reforms to make doing business in Nigeria easier.
“Some of the successful reforms include the ability to reserve a business name within four hours.
“Complete the registration of a company within 24 hours online.
“Apply for and receive approval of a visa-on-arrival electronically within 48 hours.
“File and pay taxes online; and access specialised small claims commercial courts in Lagos and Kano States.
“The World Bank also reported in 2018 that 32 states of Nigeria improved their ease of doing business environment, led by Kaduna, Enugu, Abia, Lagos and Anambra States.”
He said that in 2019, PEBEC set a goal to move Nigeria into the top 100 on the 2020 World Bank Doing Business Index (DBI).
Osinbajo said that to achieve that, Nigeria would continue to pursue the implementation of reforms across all indicators.
He said that the indicators included implementation of legislative reforms, specifically the passage of the new Companies and Allied Matters Act and the Omnibus Bills.
The vice president listed others as the expansion of the regulatory reform programme started with NAFDAC and NAICOM, to include other regulators; the establishment of a National Trading Platform for ports and concession of major international airports.
“PEBEC has now commenced the fourth 60-day National Action Plan (NAP 4.0) on the Ease of Doing Business.
“NAP 4.0 is running from March 1 to April 29, 2019. It aims to deepen the reforms delivered over the past three years and drive institutionalisation.
“We have highlighted key action items in all of the focus areas to ensure we drive sustainability
“Some of the targets achieved in the last NAP 3.0 include driving registration for utilisation of the National Collateral Registry to facilitate access to credit for SMEs.
“Clearance of all pending NAFDAC registration applications to improve efficiency; and creation of a strengthened single joint cargo examination interface in all airports and seaports for import and export to reduce the time spent at the ports.
“NAP 4.0 will focus on initiatives such as enforcing compliance with Service Level Agreements (SLAs) across all indicators/focus areas, driving the passage of the Companies Allied Matters Bill 2018 for improved effectiveness of company law in Nigeria,” he said.
He said that other areas of reforms were enhancing efficiency in the small claims court, and enhancing the application and approval system for visas on arrival, among others.
According to him, the council will continue to work with all MDAs, the National Assembly and other key stakeholders.
In her address, Coordinator of PEBEC and Senior Special Assistant to the President on Industry, Trade and Investment, Dr Jumoke Oduwole, said the award was to appreciate MDAs which had contributed in the implementation of PEBEC mandate.
She said that the reforms were aimed at reducing bureaucratic bottlenecks and improve perceptions about Nigeria’s business environment.
Oduwole said that NAP 4.0 would enable the federal, state governments and the private sector to deliver impacts to Nigerians.
“The award is to give pat on the back of agencies and private sectors carrying out these reforms to ensure sustainability of the reforms,” she said.
On his part, Mr Okechukwu Enelamah, the Minister of Industry, Trade and Investment, said the award was a landmark in the journey of creating an enabling business environment in Nigeria.
He said that PEBEC was a foundation for creating a Nigeria that the citizens deserved.
The awards which came under various categories were presented to various government agencies and private establishments.
The awardees were: Corporate Affairs Commission, National Assembly Business Environment Roundtable, Nigeria Economic Summit Group, Nigerian Bar Association, Department for International Development, World Bank Group, Federal Inland Revenue Service, KPMG, Nigerian Ports Authority, Nigerian Stock Exchange, among others.
Notable among the awards was the World Bank’s sub-National Award for Reformed States in 2018, which went to Anambra, Abia, Lagos, Enugu and Kaduna States.
Governor. Okezie Ikpeazu of Abia State, said he was excited over the award and was dedicating it to God and Abia people.
“But I must acknowledge the dark room team–the various ministries and departments and agencies that reformed and reformed quickly.’’
Ikpeazu said that the award was in line with the promotion for the Enyimba Economic City.
He said that his ambition was to make Abia investment destination, not only in Nigeria but in Africa, adding that the only way to do it was to ensure that the ease of doing business was enhanced.
“We become a sub-national leader in this sector and by the grace of God, we will achieve this.
“Abia is an investors’ haven and I think by NBS statistics, we are number three in terms of investment in Nigeria. And we want to be number one and we can do it.
“The Enyimba Economic City is alluring; it is compelling; it is irresistible; this is the place to go,’’ he said.
The governor appealed to investors to come to Aba and invest, as the city would soon enjoy uninterrupted power supply.
Without doubt, the Ease of Doing Business in Nigeria has improved, concerted effort should be made to sustain it, to enable the country achieve its target of moving into the top 100 on the 2020 World Bank DBI.
Okoronkwo writes for News Agency of Nigeria.

Chijioke Okoronkwo

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

2 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

6 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu