Business
Nigeria, Others May Continue In High Debts – Report
The economic outlook of Nigeria and some other countries of the world appears clouded with high inflation which has reduced private sector optimism and weakened consumer spending.
According to a report by the Organisation of Petroleum Exporting Countries (OPEC), this is in spite of the improvements in fossil fuel prices in the short term so indicated in the economic outlook.
OPEC indicated that this could increase uncertainty and make high debt levels to persist in Nigeria, and across some other countries of the world next year.
In its newly released Monthly Oil Market Report for July 2022, OPEC indicated that in May 2022, Nigeria’s composite Consumer Price Index rose to 17.7 per cent year-on-year, from 16.8 per cent year-on-year in the prior month.
Responding to the elevated inflationary pressures, the Central Bank of Nigeria (CBN) raised its policy rate by 150 bps to 13 per cent, bringing borrowing costs to the highest since April 2020.
“It was the biggest rate hike since July of 2016 amid concerns that persistent inflationary pressures could weigh on the country’s fragile recovery”, the report said.
Nigeria has been unable to increase its crude revenue despite the rise in crude prices, and consistent increases in production quota by OPEC.
The country’s output recently dropped to about 1 million barrels per day, further worsening its chances of taking advantage of the Russian/Ukraine war to earn more revenue.
OPEC’s forecasts put world GDP growth in 2023 at 3.2 per cent, with the assumption that the ramifications of the pandemic, geo-political developments in Eastern Europe and global financial tightening amid rising inflation do not negatively impact the 2023 growth dynamic to a major degree.
It also assumed that major economies revert back towards their growth potential. However, OPEC said the downside risk exists.
“Global inflation continues to be a major concern, along with the consequence of further monetary tightening measures by key central banks.
“The continuation of the pandemic into 2023 is another risk that could curb growth depending on the extent of measures taken to reduce contagion.
“While labour markets are forecast to remain tight, supply chain bottlenecks may not be resolved in the short term and high debt levels across the globe may persist”, the report said.
Although OPEC said the above-average fossil fuel prices support a firmly positive outlook for the rest of the year, however, it said “concerns over soaring inflation would increase uncertainty next year.
Brent International rose to $100.32 at 1:15PM last Wednesday after declining and closing at $99.22 per barrel on Tuesday. However, as at 12:52P on Thursday, prices slide back to $99 per barrel
The OPEC warning comes on the heels of a warning by the country’s Debt Management Office, that Nigeria needs to generate significantly more revenue beyond current levels to avoid debt distress.
A report said Nigeria lost a total of N4.2tn in crude oil revenue in the first six months of 2022 due to its inability to meet the daily production by OPEC.
While the country’s oil revenue is on a downward trajectory due to low production, its GDP grew by 3.11 per cent year-on-year in the first quarter of the year in real terms, following a 3.98% growth recorded in the previous quarter (Q4 2021).
Again, while the economy seems to be moving on a positive trajectory after the recession recorded in 2020, recent economic reality seems to be putting the recorded growth in jeopardy.
For instance, rising cost of goods and services in the country has forced organisations to reduce working hours, even as much as laying off staff due to surging operating costs.
Experts say policy actions to curb the rising inflation rate, triggered by the energy crisis, fuel scarcity amongst others need to be put in place, in order to avert what would seem as the third economic recession in just seven years.
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos