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MAN, LCCI, economists counter Buhari’s claim on economy

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The Manufacturers Association of Nigeria, the Lagos Chamber of Commerce and Industry and economists on Wednesday countered the claim made by the President, Major Gen. Muhammadu Buhari, that the economy under him is better that it was in 2015.

The Chairman of the Gas Group, the Manufacturers Association of Nigeria, Mr Ola Adebayo, said Buhari’s regime’s policies have not translated into positive economy growth and real sector development.

He faulted the regime’s implementation of policies under Buhari, stressing that his regime would not score a pass mark.

Adebayo said, “One thing I have observed is that policy formulation is different from implementation. With the recent events, I don’t think the government has passed. We only have very good policies on paper, but the implementation has been lacking. Once there is no implementation, it becomes just an idea.”

Also, the Deputy-President of the Lagos Chamber of Commerce and Industry, Mr Gabriel Idahosa, said the reality was at variance with the claims of the President.

He said the current regime has not been able to attract the private sector to invest in critical infrastructures like railways and airports, saying that the government’s economic model is counterproductive and not in the best interest of the economy.

“The business community has been consistent in saying so. It’s not a matter of disagreeing with him. It’s a matter of looking at the facts at the table.”

Idahosa further said, “We don’t really need any complicated analysis to see whether the policies are addressing the issues of the business community. Whether it is power supply, the foreign exchange market, whether it’s a model that enables the private sector to invest in infrastructure in a manner that enables business to thrive, it is clear for all to see.”

On his part, Director-General, the Nigerian-American Chamber of Commerce, Mr Sola Obadimu, said Buhari’s assessment of his administration’s economic policies did not reflect the realities on ground.

According to him, his regime had failed in all economic indices and should be humble to admit it.

He said, “In the past seven years, we have witnessed the most volatile phases in our industrial life. For instance, if we pick the naira valuation as at when he came in and now, you will see the difference. That has been unfriendly to industry.”

He said the benchmark interest rate has been high at 13 per cent, making access to capital difficult.

Obadimu further stated that with the disparity between exchange rate at the official and parallel markets, it was obvious that the government had created certain opportunities for round tripping in the system and consequently put a strain on business entities who needed foreign exchange for business.

An economist and Chief Executive Officer, Center for the Promotion of Private Enterprise,  Dr Muda Yusuf, said that between 2015 and now, the nation’s economy has recorded over 200 percent currency depreciation.

He said that the investors’ confidence has worsened within theperiod under review and major indicators show that the economy is lagging behind .

“I don’t agree with that. Let us look at all the major indicators in the economy. Look at inflation, look at how bad things are and you know the implication of inflation for investments and for welfare. The current situation now is almost unprecedented and, of course, you can’t compare that now to what the situation was in 2015. Look at our currency. What was the exchange rate even at the parallel market in 2015 and what is it now? We are talking of a depreciation of over 200 per cent or even more and that also has a very serious implication. Even the poverty situation in the land is much and the business confidence. Investors’ confidence has worsened between 2015 and now. So, I don’t agree with that assertion.”

Also speaking, the Founder of Cowry Assets Management Limited, Mr Johnson Chukwu, said, “I will be belittling myself to comment on issues like that. Let me ask you, what is your take on it? If I were a journalist, I wouldnn’t even write about it. That’s how I feel about that comment.  Because it just doesn’t make sense for me to be wasting my time talking about it. I need to initiate conversations higher than that level. Because even a daft and a person who didn’t go to school will discuss it. It doesn’t make sense. Somebody said I’ve done well and you want me to discuss it. I guess you understand how I feel about that.  It doesn’t make sense for anybody to discuss it.

“It’s not a matter of feeling, it’s how you are living. How much do you buy bread? How much do you pay for transport? How good is light in your area? So, if you want me to comment and speak about the economy, the way forward and what to expect from the new president, I will, not this,” he said.

A scholar and an Associate Professor at Pan-Atlantic University, Dr Olalekan Aworinde, said that the only sector that is doing well is the oil and gas.

“We cannot say that the economy has fared well because we still have so many indices that tell us that the total values of goods and services produced in Nigeria are nosediving.  The only sector that is doing well is the oil sector. It makes about 80 per cent of the revenue in Nigeria. If you take a look at the manufacturing and agricultural sectors, they are not at the level we expect. There might be some improvement in agriculture but the kind of farming practiced in Nigeria is still at the subsistence level. In the manufacturing sector, we have more firms folding up probably because of these infrastructures that we expect. There’s no stability in power. The rate at which the Gross Domestic Profit is growing in Nigeria is not at the fast rate. It’s increasing at a decreasing rate.”

He also said that the government has pushed a  lot of Nigerians into poverty than it has taken people out of poverty.

“Let me talk about price stability, it is worrisome. I don’t know how this government is able to come out without looking at the statistics at the price level. The last figure that was released by the National Bureau of Statistics a few weeks ago tells us that inflation is close to about 18 per cent. So, before they were in government, what was the statistics? So, this government has brought a lot of people more into poverty, absolute poverty than they have taken people out of poverty. I’m not going to agree with President Buhari’s statement. Yes, price stability is the responsibility of the CBN so in an attempt to maintain this price stability, you would discover, particularly this year, that it has been worrisome. It has been on the increase”

“I do not know what the yardstick that he used. Look at the level of unemployment. If you say you want to reduce the level of unemployment, that means that the level of inflation will be on the increase. But despite the fact that there’s an increase in inflation, the level of unemployment is still increasing. It is very clear, this is not unconnected with the manufacturing sector that is not doing well. The manufacturing sector is not doing well, so which sector will be used to employ the teeming youths that are not employed in Nigeria? The  unemployment figure in Nigeria is about 33 per cent. So before they assumed office, what was the percentage and presently what is it? This government has taken a lot of loans and the future generations will have to pay for these loans. I do not know where the statistics and the indices that this present government is using to better the lot of Nigerians because as at the last count, the World Bank told us that the present government has made so many Nigerians to fall into abject poverty,”

Director of Research and Strategy, Chapel Hill Denham, Mr Tajudeen Ibrahim, also said, “I think we should look at the major metrics to know if really the economy is doing better now than in 2015 and one major metric is the exchange rate. And for the exchange rate, the Naira has lost tremendous value in the past 7years. And that has led to several other factors such as higher consumer price index over the period. It has also led to great uncertainty for foreign investors in terms of investing in the country,” he concluded

What the numbers say

Under Buhari, Nigeria experienced two recessions – one in 2016 and another in 2020 fuelled by COVID-19.

 As at the fourth quarter of 2014, Nigeria’s unemployment rate was 6.2 per cent, according to data by the National Bureau of Statistics, NBS. As at the fourth quarter of 2021, the NBS disclosed that the rate in the economy had risen to 33.3 per cent, making it one of the worst in the world and signifying a 437 per cent increase over the seven-year period.

As at May 2015, Naira exchanged for dollars at N197/$ at the interbank market and N217/$ at the parallel market. Naira is N415-N420 to a dollar at the Importers and Exporters Window and nearly N603-N610 at the parallel market. Subsidy has since risen from N100 million in 2015 to N4 trillion in 2022.

Inflation is not spared as prices have risen by over 70 per cent since Buhari came to power. Inflation has since 2015 risen from 9.01 per cent (average number in 2015) to over 17 per cent  in May 2022.

The Misery Index in 2015 was 47.7 points but it has risen to 50.48 points, meaning that more Nigerians are now more miserable than they were in 2015.

Similarly, in 2018, Nigeria was adjudged by the World Poverty Clock as the world’s poverty capital.

According to the World Bank, the poverty rate was 33.1  per cent by the end of 2014/ beginning of 2015, but poverty rate will likely sit at 42.6 per cent in 2022.

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Governor’s wife advises Jerusalem pilgrims on conduct

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The returnees who participated in the 2022 pilgrimage to Jerusalem and Jordan have held a thanksgiving service to appreciate God for the successful journey.

According to a statement issued by the state government, the service, held at Chapel of Christ The Light, Alausa, was graced by the wife of the Lagos State Governor, Dr Ibijoke Sanwo-Olu.

Represented by the wife of a former Speaker, Lagos State House of Assembly, Mrs Mayowa Ikuforiji, Sanwo-Olu advised the returnees to be true ambassadors of Christ and allow their encounters during the pilgrimage to strengthen their relationship with God and the people around them.

The governor’s wife said, “You cannot afford to go back to your old ways and lifestyles. As you have been described as the light and salt of the world in the Holy Book, it means that you have a lot of tasks ahead of you.”

Sanwo-Olu then thanked God on behalf of the pilgrims for the successful completion of the exercise and the journey mercies experienced.

She said, “We bless the Lord that there was no report of any negative eventuality. It is fitting at this point to state that we are indeed peculiar people with a deep sense of appreciation and we show this trait in praises and thanksgiving to God who specifically called us out of darkness into His marvellous light.”

In her remarks, the Secretary, Lagos State Christian Pilgrims Welfare Board, Mrs Yetunde Gbafe, said the thanksgiving service was in line with God’s injunction as recorded in Psalm 100 where believers were enjoined to come into His presence with praise and thanksgiving.

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Nigeria needs $12bn to clean up oil spills – Report

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Nigeria needs $12bn to clean up decades-old oil spills in southern Bayelsa State over a 12-year period, a new report revealed on Tuesday, as it singled out two international oil companies, Shell and Eni, for being responsible for most of the pollution.

Oil majors in Nigeria have long faced legal challenges over Niger Delta spills, which they mostly blame on sabotage and vandalism of pipelines and illegal refining.

The Bayelsa State Oil and Environmental Commission said in a report that it started an investigation in 2019 on the impact of spills and looked at evidence from forensic scientists, blood samples from people in affected areas and company data, according to Reuters.

The investigation discovered, among other findings, that toxic pollutants from spills and gas flaring were many times higher than the safe limits in samples of soil, water, air, and in the blood of local residents, the commission said.

“The report finds failures of strategy, prevention, response and remediation by oil companies,” it said.

Reuters stated that a spokesperson for Shell Petroleum Development Company of Nigeria Limited said the oil firm was not privy to the final report and could not comment.

An Eni spokesperson said the oil spills were due to theft to feed illegal refineries as well as illegal exports and sabotage but the company undertook to remedy all spills.

Most of the gas produced from Eni’s Nigerian unit was converted into LNG and fed local power plants, the spokesperson said, adding that “Eni conducts its activities according to the sector’s international environmental best practices, without any distinction on a country basis.”

Toxins that cause burns, lung problems and risk of cancer were widespread while oil company-led clean-ups were often poorly executed and could further contaminate soil and groundwater, the commission’s report said.

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Experts advise marketers to leverage technology

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Experts have advised marketing professionals to take advantage of technology to revamp marketing tactics.

The marketers were admonished at the National Institute of Marketing of Nigeria Ikeja Chapter 3rd Annual Public Lecture held recently in Lagos.

Speakers at the event said due to the highly competitive marketing arena, marketers must be willing to adjust their approaches in response to shifting market trends and economic circumstances, to remain competitive and achieve success.

The Ikeja Chapter Chairman of NIMN and Chief Executive Officer of Procon Group, Adebayo Oke, noted that the conference was basically to review the position of things in the institute in the face of the country’s dynamic economy.

He said, “We all know that in terms of political economy, we are going to be having a change very soon. Where we are coming from, there are issues that have affected consumerism in terms of the power of a consumer, choices and whether it will get tougher or better that is why we are here. To also share knowledge among the top practitioners to floor it down.”

According to him, a lot of quacks are in the market and most companies believe marketing is anybody’s function.

“And going forward, we are going to be regulating the practice of marketing across all industries and in partnership with the international brands in the areas of marketing, including the Chartered Institute of Marketing UK, amongst others,” he stated.

He disclosed that the institute would be partnering with most companies to ensure that only certified marketer would be allowed to practice marketing, to enable the institute get rid of all the quacks.

The President and Chairman of Council for NIMN, Idorenyen Enang, in his keynote address, highlighted the significance of marketers harnessing the potential of technology while ensuring that they adhere to ethical principles of the profession.

He said, “The benefits of technology in streamlining operations are widely appreciated. However, concerns about job displacement due to AI have arisen. Marketers must strive for a harmonious implementation of these technologies, striking a balance that mitigates such disadvantages.”

He added that while automation greatly enhances efficiency, there is a potential loss of intellectual capacity as the current generation prioritises speed, brevity, and simplicity.

Also, the Head Sub-Saharan Africa Digital Media & Insights of FrieslandCampina WAMCO Plc, Ifeoluwa Obafemi, said, “In the phase of technological advancement and changes in consumer behaviour, as marketing professionals, we should set our organisation in a future forward mode. For businesses to maintain a competitive edge in the present-day business environment, undergoing a marketing transformation is a necessary process.”

On his part, the Chief Executive Officer of Axiom Intel Limited, Kolawole Oyeyemi, said, “Marketers should attract and retain their customers. Nowadays, customers are now more informed and know your business more than you do because they now compare your services to global best practices.

“There is a revolution in technology which has assisted in creating tools and devices and building platforms to allow customers to interact with companies across the world.”

According to him, it is a volatile environment and things one does not think will connect one’s business may connect from a very long distance.

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