National Digital Economy Bill Scales First Reading

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July 9, 2024

The National Digital Economy and e-Governance bill has scaled through its first reading at the House of Representatives.

The bill, which was sponsored by the Chairman of the House Committee on Digital and Information Technology, Adedeji Dhikrullahi Olajide, aims to provide a legal framework for the development and regulation of the digital economy.

Olajide, representing Ibadan North-West/Ibadan South-West Federal Constituency of Oyo State at the National Assembly expressed his excitement at the milestone achieved with the first reading of the bill.

According to him, the passage of the bill will have far-reaching implications for Nigeria’s economic growth and development.

“This bill is a crucial step towards harnessing the potential of our digital economy and positioning Nigeria as a key player in the global digital landscape,” Olajide said.

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He disclosed that the committee would go on a nationwide consultation process, engaging with stakeholders, industry experts, and the general public to gather input and feedback on the bill.

“This consultation process will ensure that the bill reflects the needs and aspirations of all Nigerians and that we create a digital economy that works for everyone,” Olajide added.

The National Digital Economy and e-Governance Bill seeks to establish a regulatory framework for the digital economy, promote digital literacy and skills development, enhance cybersecurity, and encourage innovation and entrepreneurship.

The lawmaker, who noted that with the first reading, the bill would still go through scrutiny and debate before its passage into law, urged industry stakeholders to support the initiative, describing it as a significant step towards unlocking Nigeria’s digital potential.

Food Security: Nigerian Govt. Suspends Food Imports Duty

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Rhoda Onuzulike

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July 8, 2024

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The Federal Government of Nigeria on Monday announced a 150-day duty-free import window for food commodities as it stepped up efforts to tackle rising inflation which had impoverished many Nigerians.

The government also expressed its decision to collaborate with states to expand land cultivation across the country.

Also, the government suspended duties, tariffs and taxes for the importation of certain food commodities through land and sea borders.

Among other things, the latest directive is expected to reduce demand for forex by food importers. In 2023, Nigerians spent $2.13bn to import food items from foreign countries.

The quarterly statistics of the Central Bank of Nigeria showed that the country exported large amounts of food from foreign countries despite being touted as the food basket of Africa.

The high food import bill is a concern for the government. The country has a large agricultural sector, and there have been efforts to boost local production to reduce the dependence on food imports. However, factors such as inadequate infrastructure, insecurity, and climate change have hindered progress in the sector.

The government had earlier ruled out the importation of food as part of strategies to address the high costs of foodstuffs and the economic hardship troubling the country.

Speaking at the press conference held in Abuja, Minister of Agriculture and Food Security, Abubakar Kyari, said that 150 days of duty-free imports would be valid for commodities including maize, husked brown rice, wheat, and cowpeas.

The initiative which is part of the Presidential Accelerated Stabilisation and Advancement Plan would also enable the Federal Government to import 250,000 metric tonnes of wheat and 250,000MT of maize.

The minister explained that the imported food commodities in their semi-processed state would target supplies to the small-scale processors and millers across the country.

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The minister stated that in addition to the importation by the private sector, the “Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”

Kyari explained that the advancement plan was an initiative of President Bola Tinubu to bring about food security and economic stability to Nigeria.

He noted that over the past several months, “we have all been witnesses to the escalating cost of food items in all parts of the country. There is virtually no food item that has not had its price raised to a level higher than what a good many Nigerians can afford.”

The minister stated that the affordability crisis in our food security system had been indexed by the data from the National Bureau of Statistics which by the last count, had put food inflation at 40.66 per cent.

FG To Construct 3 Legacy Super Highway Projects

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Rhoda Onuzulike

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July 8, 2024

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The Federal government has revealed plans to construct three legacy projects Superhighways from Sokoto state to Badagry which is expected to pass through Kwara and Niger States to boost the socio-economic lives of Nigerians within the axis.

The Minister of Works, David Umahi who disclosed this in Ilorin the Kwara State capital during a Stakeholders engagement which include the Kwara State deputy governor, Kayode Alabi, Niger State governor, Umar Bago and others said Kebbi State has the highest length of 258km, followed by Kwara State with 188km while Niger state has 120km.

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According to Nigeria’s Minister of Works, David Umahi, the idea behind the projects was conceived about 48 years ago by the past administrations but was abandoned, assuring that the present administration will accomplish all the legacy projects, saying the projects will be a catalyst for the Nation’s development as road infrastructure according to him is key in commerce, tourism and education.

The minister also maintained that all the ongoing new and inherited projects will be properly funded with timely due date of completion

Umahi maintained that the investment in infrastructure will help address current challenges in the country.

Zimbabwe’s Retail Sector Faces Uncertainty

By

Rhoda Onuzulike

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July 8, 2024

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FILES-ZIMBABWE-UNREST-POLITICS — (FILES) In this file photo taken on September 7, 2018 Zimbabwe's President Emmerson Mnangagwa answers questions during a press conference to announce ministers of his new cabinet at State House in Harare, Zimbabwe. - Zimbabwe President Emmerson Mnangagwa has landed back in Harare, state television said on January 22, 2019, after he cut short a foreign tour over nationwide protests that were met with a brutal security crackdown. (Photo by Jekesai NJIKIZANA / AFP)JEKESAI NJIKIZANA/AFP/Getty Images

Zimbabwe’s formal retail and wholesale trade sector is grappling with an uncertain future as it faces mounting pressure from an influx of informal traders.

This competitive strain is exacerbated by the high costs of doing business in Zimbabwe, including numerous taxes, levies, and utility expenses.

Formal retailers have voiced their concerns about several constraints impacting their viability, with the unfair competition from informal traders being a primary issue. These informal traders, often referred to as tuckshops, typically operate outside the regulatory framework, avoiding taxes and trading exclusively in U.S dollars.

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The retail sector’s struggles come at a time when consumers’ spending power has been significantly diminished due to persistent high inflation and economic instability. The presence of informal traders, who do not adhere to statutory regulations and offer lower prices, has created a challenging environment for formal businesses, leading many to downsize or even close shop.

An executive from a leading wholesaler, with branches nationwide, painted a bleak picture of the future for Zimbabwe’s retail and wholesale sector. “The environment is difficult for formal operators. Informal traders can avoid certain costs and regulations, making it tough for formal businesses to compete. This puts the future of formal retailers and wholesalers in a precarious position,” he said.

Adding to the industry’s woes is the proliferation of fake products and tampering with measures and weights of goods sold in the market. The executive noted, “There is a reason why regulations exist – to create standardization, protect consumers, and ensure fair competition. If these are not adhered to, the sustainability of the market is questionable.”

The challenges have prompted some formal retailers to rethink their strategies. OK Zimbabwe, one of the largest retail chains in the country, has implemented a 10-year recovery plan to address these issues. Despite a 15% increase in volume in the first quarter of 2024, the retail group reported a 10% decrease in customer count, highlighting the uphill battle they face.

Equities research firms have also noted the difficulties, with one stating, “OK Zimbabwe faces significant challenges in returning to profitability and regaining market share.”

The impact of informal trading is not only felt by individual businesses but also by the government’s tax revenues. The Zimbabwe Revenue Authority (Zimra) reported a decline in corporate tax contributions, attributing it to the rise of the informal sector, which now controls more than 60% of economic activities in the country. Corporate tax contributions to total collections dropped from 19% in 2020 to 10% in 2023.

In response to these challenges, Finance Minister Mthuli Ncube introduced new taxes in the 2024 national budget to bolster revenues. Meanwhile, the Confederation of Zimbabwe Retailers (CZR) has initiated efforts to formalize the operations of informal traders. President Denford Mutashu of CZR acknowledged the significant impact of informal traders on formal businesses and stressed the need for a level playing field.

“We have engaged with various authorities, including the Treasury, Zimra, banks, and the Ministry of Industry and Commerce, to address the challenges and expectations of informal traders regarding formalization and the fiscalization drive,” Mutashu said. He emphasized the importance of creating a more suitable presumptive taxation model for these traders, who currently find the fiscalization process costly and cumbersome.

The growing competition from informal traders has led to significant changes in the retail landscape, with some large registered retailers downsizing or closing operations. Mutashu highlighted the urgent need for policy measures that reflect the current market dynamics and ensure fair competition for all players.

As Zimbabwe’s retail sector navigates these turbulent times, the push for formalization and regulatory adjustments will be crucial in determining its future viability and sustainability.

U.S Unemployment Rate Climbs 4.1% in June- Report

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Rhoda Onuzulike

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July 8, 2024

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U.S. unemployment rate hit a 2-1/2-year high of 4.1% in June 2024, with government and healthcare services hiring making up about three-quarters of the payrolls gain.

According to reports, this points to a slackening labour market that keeps the Federal Reserve on course to start cutting interest rates.

The Labour Department’s employment report on Friday also showed the economy created 111,000 fewer jobs in April and May than previously estimated, suggesting the trend in payrolls growth was slowing.

Annual wages increased at the slowest pace in three years amid an expanding labor pool, adding to the flashing warning signals in the jobs market.

About 277,000 people joined the labour force, accounting for the increase in the jobless rate from 4.0% in May to the highest level since November 2021.

Nonfarm payrolls increased by 206,000 jobs last month, lifted by government hiring, the Labour Department’s Bureau of Labour Statistics said.

The Quarterly Census of Employment and Wages (QCEW), has suggested a much slower pace of job growth through the fourth quarter of 2023 than that of the payrolls data.

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The QCEW data is derived from reports by employers to the state unemployment insurance (UI) programs. While economists expect employment to be revised down when the BLS in August publishes its payrolls benchmark estimate for the 12 months through March of this year, they argued that the QCEW data does not include unauthorized immigrants, a group that they believe contributed to strong job growth last year.

Though hiring in June continued to be driven by acyclical sectors like healthcare and state and local governments, the share of industries reporting job growth jumped to 59.6% from 56.4% in May.

Government employment surged by 70,000 jobs, the most since December, boosted by local government, excluding education and state government.

Private payrolls increased by 136,000, with the healthcare and social assistance sector adding 82,400 positions.

Construction payrolls rose by 27,000. But the retail sector shed jobs, as did manufacturing. Professional and business services employment declined by 17,000 jobs, with temporary help jobs dropping by about 49,000, the most since April 2020. That likely portends slower payrolls gains ahead.

Wike To Relocate Abuja’s Largest Mechanic Village

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Rhoda Onuzulike

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July 8, 2024

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Minister of the Nigerian Federal Capital Territory (FCT), Nyesom Wike, has taken concrete steps to relocate Abuja’s largest mechanic village, known as Apo Mechanic Village, to a permanent site, 25 years after the idea was first proposed by the FCT Administration.

Wike dismissed speculations that the Administration had given a deadline for occupiers of the mechanic village to move out or risk demolition, stating there was no such directive. He also warned officials against nepotism in the allocation of shops.

The move aims to relocate thousands of auto technicians, spare parts dealers, and other ancillary service providers from their current location to a more expansive permanent site in Wasa district, a 15-minute drive from their current location.

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While inaugurating a 19-member Technical Committee on the relocation of the auto technicians from Apo to Wasa on behalf of the Administration, the Coordinator of the Abuja Metropolitan Management Agency (AMMC), Chief Felix Obuah, said the technicians had lost hope over the years, fearing that the area could be demolished at any time.

Obuah stated that instead of immediate demolition, the Wike-led Administration has decided to provide a better alternative and ensure an orderly migration before demolishing the current site to expand the roads.

Obuah said, “Two weeks ago, we held a meeting to discuss the relocation of the Apo mechanics who had been operating on the right of way. We have set up a technical committee to survey Wasa and Apo to identify those we need to relocate. This will allow us to provide an accurate timeline for the relocation. We are verifying and creating a database to ensure everyone we are relocating is actually on the road corridor.”

He emphasized, “We are not treating this as a casual exercise. We are relocating those who have lost hope and do not have anywhere to trade from the road corridor. The hope that was lost has been restored by Mr. President through the Minister, and I assure you that the entire process will be completed within three months.”

Obuah added that the goal is to ensure Abuja maintains its status as Nigeria’s capital.

The Minister approved the relocation of those occupying the right of way to allow for construction in the area.

The 19-member technical committee includes representatives from Development Control, Abuja Environment Protection Board (AEPB), Urban Affairs, Resettlement and Compensation, General Counsel and Legal Services, Lands, Urban and Regional Planning, Mapping and Surveying, Finance and Administration, and the Directorate of Road Traffic Services (DRTS/VIO), among others.

The committee’s responsibilities include enumerating eligible auto mechanic-technicians/dealers for relocation to Wasa, preparing the relocation site, handling compensation matters, establishing site boundaries, identifying areas for integration, and reviewing the layout.

The Chairman of the Committee, Abubakar Makama, acknowledged that the issue has been unresolved for over 25 years and thanked the coordinator for taking action within three months in office.

Oyo Government Pledges To Unlock MSMEs’ Potential

By

Rhoda Onuzulike

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July 8, 2024

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The Oyo State Government has said it is poised to provide the necessary support for Micro, Small, and Medium Enterprises (MSMEs) to unlock their full potential and ensure their long-term success.

The Commissioner for Trade, Industry, Investment and Cooperatives, Adeniyi Adebisi, said this in Ibadan, when he played host to the organisers of the forthcoming Trade Fair to be hosted by the Oyo State Chamber of Commerce, Industry, Mines and Agriculture (OYCCIMA), in the Oyo State capital.

Recognising the vital role that MSMEs play in the Nigerian economy, Adeniyi stressed the government’s responsibility to support businesses, considering that they are the lifeblood of economic prosperity.

He acknowledged the importance of collaboration between the government and the private sector in driving economic growth and development.

Also playing host to the Nigerian Association of Small Scale Industrialists NASSI, Adeniyi assured both associations of his ministry’s support, saying he looked forward to working with them to achieve their shared goals.

He further highlighted the importance of infrastructure development and security in creating a conductive environment for investments to thrive in the state.

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The commissioner noted that the state government, under the leadership of Governor Seyi Makinde, has made significant investments in infrastructure development and security, including the recruitment of additional Amotekun security officers.

He, however, emphasised the need for MSMEs to embrace technology, innovation and adapt to evolving consumer demands, noting that MSMEs in the state would be better positioned not just as participants in the global marketplace, but also as leaders and innovators, setting the pace for others to follow.

The Oyo State Chamber of Commerce, Industry, Mines and Agriculture delegation, led by its President, Dr Daniel Gbadero, sought the commissioner’s support and collaboration for the Trade Fair aimed at promoting businesses and industries in Oyo State.

Similarly, the NASSI, led by the Ag. Chairman, Ogunjide Abraham, solicited help from the state government to establish an enterprise zone, which would provide a hub for industrialists and access to solar energy for constant power supply.

FG Takes Action as JAMB Discovers 3,000 Fake Certificates

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Nzubechukwu Anodo

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July 8, 2024

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The federal government of Nigeria has confirmed that the probe of the 3,000 alleged fake graduates recently uncovered by the Joint Admissions and Matriculation Board, JAMB was ongoing.

The minister of state for education, Tanko Sununu who made this known to The Nation on Sunday, July 7, vowed that those indicted would be prosecuted for forgery.

JAMB recently disclosed that its quest to sanitise admissions into Nigeria’s tertiary institutions has resulted in the discovery of 3,000 fake graduates and illegal certificates.

This came as JAMB insisted that it would not compromise transparency in its admissions process.

Reacting to JAMB’s disclosure of ghost students, Tanko explained that the report of a panel that investigated allegations of degree racketeering in foreign and private universities was ready.

He stated that the fake graduates were part-timers who illegally found their way into regular programmes.

The minister explained: Investigation is ongoing and those identified will be prosecuted accordingly.

The 3,000 are part-time candidates that forged their admission to be regular (students) just for them to participate in the National Youth Service Corps, NYSC).

The ministry will ensure that all due processes are followed to prosecute all those that are involved

ASUU Gives FG Two Weeks Ultimatum

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Nzubechukwu Anodo

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July 8, 2024

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The Academic Staff Union of Universities, ASUU, says strike is not imminent if the Federal Government implements the agreements reached in the next two weeks.

President of ASUU, Prof Emmanuel Osodeke said this in an interview with newsmen.

It would be recalled that ASUU had threatened to embark on a strike over the non-implementation of agreements reached with the federal government.

The Minister of Education, Prof. Tahir Mamman, June 26, invited the union to a meeting to deliberate on the lingering issues affecting universities and to avert the planned strike.

Osodeke said none of the agreements reached with the Federal Government had been implemented.

His statement read, At the meeting called by the Minister of Education, we agreed that after two weeks, we would meet to see the progress the government has made.

We will also see what we will do next if government fails to implement the agreements reached.

The meeting in the next two weeks is to see what they have done, which will inform our decision.

The ASUU president said some of the demands included the non-implementation of the 2009 re-negotiated agreements.

He said the agreements had lingered for over six years, and the government had yet to implement them.

Osodeke said the academic allowances due to their members had also accumulated for over six years, and nothing had been done about it.

On the issue of revitalisation fund, he said they agreed on the NEEDs Assessment Report to raise N200 billion yearly, for five years.

Since 2013, only one has been paid. We need revitalisation fund to upgrade our universities to standard so that we can be having students and lecturers from outside the country.

Osodeke added that the government was yet to stop the proliferation of universities, adding that many new universities were being approved without funds to run them.

He said the government was also yet to exit the university salary payment from Integrated Personnel and Payroll Information System (IPPIS), as approved by the Federal Executive Council in January.

He said their members were still being paid by IPPIS, against the directive by the FEC.

Nigeria’s Foreign Exchange Reserves Hit $34.7bn

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Rhoda Onuzulike

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July 8, 2024

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Nigeria’s foreign exchange reserves have reached a high of $34.7bn, according to data obtained from the Central Bank of Nigeria’s website.

This represents an increase of $110m from the previous day’s figure of $34.5bn.

The reserves have been steadily increasing over the past week, with a total gain of $316m since July 1, 2024.

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This growth has been attributed to several factors, including the recent increase in oil prices, improved diaspora remittances, and the Central Bank’s efforts to stabilise the currency.

Experts believe that the increase in foreign exchange reserves is a positive development for Nigeria’s economy, as it provides a cushion against external shocks and supports the country’s ability to meet its financial obligations.

A recent Fitch Ratings has placed Nigeria’s economic outlook to positive, citing significant reforms that have restored macroeconomic stability and enhanced policy coherence and credibility.

Fitch said, “The positive outlook partly reflects reforms over the last year, which have reduced distortions stemming from previous unconventional monetary and exchange rate policies.”

The Central Bank has implemented various measures to manage the foreign exchange market, including the introduction of the Investors’ and Exporters’ window, which has helped to attract foreign investment and boost reserves.

The reforms have led to a return of sizeable inflows to the official foreign exchange market and a significant rise in foreign portfolio investment inflows.

However, Fitch noted that short-term challenges remain, including high inflation and FX market volatility. Despite this, the agency expects further monetary policy tightening and strengthening of monetary policy transmission.

“The reforms have contributed to the restoration of macroeconomic stability and enhanced policy coherence and credibility.

“However, we see significant short-term challenges, notably high inflation, and the FX market has yet to stabilize, and the durability of the commitment to reform is to be tested,” Fitch stated.