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Developing The Non-Oil Sector

Published

2 years ago

March 15, 2023

A common feature in the Christmas messages last year, was “hope”. From the political leaders to religious heads and many others, Nigerians were encouraged to be hopeful for a better Nigeria from this year and beyond despite the daunting challenges facing the nation. The citizens were urged to do everything within their powers to ensure that Nigeria bounces back again both economically and otherwise.
The most striking of them all was the message by the Catholic Bishop of Sokoto Diocese, Hassan Mathew Kukah. It partly reads, “… So, we need a change of strategy so that we can turn a new page. We need a new strategy to confront those who sit on the throne of power in arrogance and are determined to reduce our country to a jungle. We need a new strategy that separates men and women of honour from those who have chosen dishonour. We need a new strategy that provides a clearer moral guide for ordinary citizens who, based on the moral strength of culture and religion, are seeking to build a good society, even if with straws. We need to stand up and stand firm. We need new mechanisms for saying no to the violence of governance”.
Indeed, in the coming year, 2023, there must be a deliberate effort to change how things have been done in the past in the country so as to birth a better Nigeria. One of the greatest desires of any nation is the need to build a resilient economic system that is self-sustaining, highly competitive, and externally visible. Citizens of every nation too desire a strong and reliable economy and a conducive environment where they could live and operate satisfactorily. To this end, nature endowed nations of the world with natural and human (intellectual) resources through which they could develop economically and sustain her citizens.
However, no country of the world, Nigeria inclusive, could grow or develop effectively despite her natural endowments without depending on another country. This growth is mostly enhanced through trade and export.Before Nigeria gained independence in 1960, her economy was dominated by trade and export and the non-oil sector (agricultural and solid mineral sub-sector) was the mainstay of her economy and the greatest foreign exchange earner contributing about 65 per cent of her (Nigeria) aggregate income.The non-oil economy can be defined as economic activities that are not directly or indirectly related to the petroleum and gas industries. These are the manufacturing, agriculture, services, telecommunications, the financial sector (banking and insurance) activities and tour operator (hotel, restaurant, park) aside others.
According to a recent research, seven non-oil activities in percentages contributed to the Nigeria Economy in Q2 of 2022 and they include Agriculture – 23.2 %, Trade- 16.8 %, Telecoms -15.0%, Manufacturing- 8.65 %, Crude oil and Gas -6.33 %, Real Estate -5.33% while Financial and Insurance contributed 4.25%. On August 23, 2022, the Nigerian Export Promotion Council (NEPC) announced that Nigeria exported over 4.146 million metric tons of non-oil products worth $2.593 billion from January to June 2022.
From the Executive Director of NEPC, Dr Ezra Yakusak, the progress report of $2.593 billion represents a 62.37 per cent increase in non-oil export recorded in the year as against the $1.59 billion and $981.44 million recorded in the first half of 2021 and 2020 respectively. Yakusak said that the report was also the highest half year non-oil export performance since 2018 which contributed significantly to the nation’s economic growth in the face of a global economic recession that affected most businesses in 2021.
He said it also contributed to poverty alleviation, industrial development and foreign exchange employment earnings for the country. “The figures of 4.146 million metric tons of product worth $2.593 billion exported between January and June 2022 culled from the non-oil export performance reports of various pre-shipment inspection agents, reinforces NEPC’s campaign to embrace non-oil export trade as a viable means of economic growth,” he said. The NEPC Executive Director equally hinted that over 200 different products, ranging from manufactured, semi-processed, solid minerals to raw agricultural products, were reportedly exported in the period under review.He said that unlike what was applicable in the past, products exported from the country were gradually shifting from the traditional agricultural products to semi-processed/manufactured goods.
Yakusak equally said that during the period under review there was no incidence of export rejections while different Nigerian products were exported to 112 countries including America, Asia, Europe, Oceania regions and some Africa countries adding that of this number Brazil, US and India were the top three export destinations based on the value of imports. “With 572 companies reportedly participating in exporting products, analysts’ belief it is an indication that Nigerian businesses are gradually embracing the diversification campaign of the NEPC by venturing into non-oil exports,” he said.
On their own part, the Federal Ministry of Industry, Trade and Investment (FMITI) said it is working assiduously with other Ministries, Departments and Agencies to end the rejection of Nigeria’s products in the international market. To this end, the Minister of FMITI, Otumba Adeniyi Adebayo, recently inaugurated a Technical Committee on Export Rejects charged with the responsibility of identifying the major causes of the rejection of the agro produce and proffering appropriate recommendations.
The committee headed by the Director, Commodities and Export Department, Mr. Suleiman Audu, is expected to make recommendations that would assist the promotion of non-oil commodity exports which had led to farmers and product aggregators partnering to explore the export market for their products. Before Nigeria gained her independence in 1960, her economy was mainly dominated by trade and export of non-oil producing products. With the discovery of crude oil, the country’s economic dependence shifted from non- oil products to crude oil. Today, the near negligence of non-oil products is having its toll on the nation’s economy.
Despite its abundant arable land and over 200 million people, Nigeria cannot feed its citizens. Successive administrations at both federal and state levels have claimed to be investing in agriculture with little or nothing to show for it. Rather, the country has become one of the largest importers of food in the world. All kinds of good items from all over the world find their way into Nigeria. We import wheat, sugar, fish, milk, vegetables, fruits, rice and other food items which could be abundantly produced locally. Incidentally, the constant plummeting of the naira has sky-rocketed the prices of virtually every item in the market. The result is that many Nigerians today go hungry. The incoming administration across all levels must therefore make improvement in agriculture, manufacturing, the creative industry and other non-oil sectors a top priority.
As stated earlier, the current administration claims to have done so well in exportation of non-oil products, although many Nigerians have disputed such bogus claims, the incoming government is therefore expected to take it a notch higher. Some stakeholders in the agricultural sector have posited that with over 79 million hectares of arable land, diversified ecological conditions, abundant water resources and adequate rainfall and sincere commitment by the government, poverty, joblessness, and hunger will be completely eliminated in the country and the country will have enough to export. But all these will remain a tall order, thereby dashing the hope of a better nation if the problems of insecurity and corruption are not sincerely dealt with.
Other issues affecting the non-oil sector like the weakening of the naira, lack of infrastructure, poor power supply and many others must be adequately addressed. The next leaders of the country must think outside the box and come up with innovative solutions that will skyrocket the Nigerian non-oil sector to an all-time high performance. It is important that Nigerians take their fate by their hand by ensuring that they elect the best persons that will pilot the affairs of government at various tiers of government in this general elections.
N/B: look for picture of Nigerians in agriculture and use

Featured

INEC To Unveil New Party Registration Portal As Applications Hit 129

Published

3 days ago

July 11, 2025

The Tide

The Independent National Electoral Commission (INEC) has announced that it has now received a total of 129 applications from associations seeking registration as political parties.

The update was provided during the commission’s regular weekly meeting held in Abuja, yesterday.

According to a statement signed by the National Commissioner and Chairman of the Information and Voter Education Committee, Sam Olumekun, seven new applications were submitted within the past week, adding to the previous number.

“At its regular weekly meeting held today, Thursday 10th July 2025, the commission received a further update on additional requests from associations seeking registration as political parties.

“Since last week, seven more applications have been received, bringing the total number so far to 129. All the requests are being processed,” the commission stated.

The commission revealed the introduction of a new digital platform for political party registration. The platform is part of the Party Financial Reporting and Auditing System and aims to streamline the registration process.

Olumekun disclosed that final testing of the portal would be completed within the next week.

“INEC also plans to release comprehensive guidelines to help associations file their applications using the new system.

“Unlike the manual method used in previous registration, the Commission is introducing a political party registration portal, which is a module in our Party Financial Reporting and Auditing System.

“This will make the process faster and seamless. In the next week, the commission will conclude the final testing of the portal before deployment.

“Thereafter, the next step for associations that meet the requirements to proceed to the application stage will be announced. The commission will also issue guidelines to facilitate the filing of applications using the PFRAS,” the statement added.

In the meantime, the list of new associations that have submitted applications has been made available to the public on INEC’s website and other official platforms.

Featured

Tinubu Signs Four Tax Reform Bills Into Law …Says Nigeria Open For Business

Published

2 weeks ago

June 27, 2025

The Tide

President Bola Tinubu yesterday signed into law four tax reform bills aimed at transforming Nigeria’s fiscal and revenue framework.

The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

They were passed by the National Assembly after months of consultations with various interest groups and stakeholders.

The ceremony took place at the Presidential Villa, yesterday.

The ceremony was witnessed by the leadership of the National Assembly and some legislators, governors, ministers, and aides of the President.

The presidency had earlier stated that the laws would transform tax administration in the country, increase revenue generation, improve the business environment, and give a boost to domestic and foreign investments.

“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Special Adviser to the President on Media, Bayo Onanuga said on Wednesday.

Before the signing of the four bills, President Tinubu had earlier yesterday, said the tax reform bills will reset Nigeria’s economic trajectory and simplify its complex fiscal landscape.

Announcing the development via his official X handle, yesterday, the President declared, “In a few hours, I will sign four landmark tax reform bills into law, ushering in a bold new era of economic governance in our country.”

Tinubu made a call to investors and citizens alike, saying, “Let the world know that Nigeria is open for business, and this time, everyone has a fair shot.”

He described the bills as not just technical adjustments but a direct intervention to ease burdens on struggling Nigerians.

“These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” Tinubu wrote.

According to the President, “They will unify our fragmented tax system, eliminate wasteful duplications, cut red tape, restore investor confidence, and entrench transparency and coordination at every level.”

He added that the long-standing burden of Nigeria’s tax structure had unfairly weighed down the vulnerable while enabling inefficiency.

The tax reforms, first introduced in October 2024, were part of Tinubu’s post-subsidy-removal recovery plan, aimed at expanding revenue without stifling productivity.

However, the bills faced turbulence at the National Assembly and amongst some state governors who rejected its passing in 2024.

At the NASS, the bills sparked heated debate, particularly around the revenue-sharing structure, which governors from the North opposed.

They warned that a shift toward derivation-based allocations, especially with VAT, could tilt fiscal balance in favour of southern states with stronger consumption bases.

After prolonged dialogue, the VAT rate remained at 7.5 per cent, and a new exemption was introduced to shield minimum wage earners from personal income tax.

By May 2025, the National Assembly passed the harmonised versions with broad support, driven in part by pressure from economic stakeholders and international observers who welcomed the clarity and efficiency the reforms promised.

In his tweet, Tinubu stressed that this is just the beginning of Nigeria’s tax evolution.

“We are laying the foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria.

“A tax regime that rewards enterprise, protects the vulnerable, and mobilises revenue without punishing productivity,” he stated.

He further acknowledged the contributions of the Presidential Fiscal Policy and Tax Reform Committee, the National Assembly, and Nigeria’s subnational governments.

The President added, “We are not just signing tax bills but rewriting the social contract.

“We are not there yet, but we are firmly on the road.”

Featured

Senate Issues 10-Day Ultimatum As NNPCL Dodges ?210trn Audit Hearing

Published

2 weeks ago

June 27, 2025

The Tide

The Senate has issued a 10-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) over its failure to appear before the Senate Committee on Public Accounts probing alleged financial discrepancies amounting to over ?210 trillion in its audited reports from 2017 to 2023.

Despite being summoned, no officials or external auditors from NNPCL showed up yesterday.

However, representatives from the representatives of the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and Department of State Services were present.

Angered by the NNPCL’s absence, the committee, yesterday, issued a 10-day ultimatum, demanding the company’s top executives to appear before the panel by July 10 or face constitutional sanctions.

A letter from NNPCL’s Chief Financial Officer, Dapo Segun, dated June 25, was read at the session.

It cited an ongoing management retreat and requested a two-month extension to prepare necessary documents and responses.

The letter partly read, “Having carefully reviewed your request, we hereby request your kind consideration to reschedule the engagement for a period of two months from now to enable us to collate the requested information and documentation.

“Furthermore, members of the Board and the senior management team of NNPC Limited are currently out of the office for a retreat, which makes it difficult to attend the rescheduled session on Thursday, 26th June, 2025.

“While appreciating the opportunity provided and the importance of this engagement, we reassure you of our commitment to the success of this exercise. Please accept the assurances of our highest regards.”

But lawmakers rejected the request.

The Committee Chairman, Senator Aliyu Wadada, said NNPCL was not expected to submit documents, but rather provide verbal responses to 11 key questions previously sent.

“For an institution like NNPCL to ask for two months to respond to questions from its own audited records is unacceptable,” Wadada stated.

“If they fail to show up by July 10, we will invoke our constitutional powers. The Nigerian people deserve answers,” he warned.

Other lawmakers echoed similar frustrations.

Senator Abdul Ningi (Bauchi Central) insisted that NNPCL’s Group CEO, Bayo Ojulari, must personally lead the delegation at the next hearing.

The Tide reports that Ojulari took over from Mele Kyari on April 2, 2025.

Senator Onyekachi Nwebonyi (Ebonyi North) said the two-month request suggested the company had no answers, but the committee would still grant a fair hearing by reconvening on July 10.

Senator Victor Umeh (Anambra Central) warned the NNPCL against undermining the Senate, saying, “If they fail to appear again, Nigerians will know the Senate is not a toothless bulldog.”

Last week, the Senate panel grilled Segun and other top executives over what they described as “mind-boggling” irregularities in NNPCL’s financial statements.

The Senate flagged ?103 trillion in accrued expenses, including ?600 billion in retention fees, legal, and auditing costs—without supporting documentation.

Also questioned was another ?103 trillion listed under receivables. Just before the hearing, NNPCL submitted a revised report contradicting the previously published figures, raising more concerns.

The committee has demanded detailed answers to 11 specific queries and warned that failure to comply could trigger legislative consequences.