Economy

AfCFTA: CSEA advocates awareness for MSMEs

Published

4 years ago

December 5, 2020

The Centre for the Study of Economies of Africa (CSEA) says developing a context-specific awareness dissemination strategy will make Micro, Small and Medium Enterprises (MSMEs) be familiar with the workings of the Africa Continental Free Trade Area (AfCFTA).

Dr Adedeji Adediran, Director, Education and Governance Research, CSEA, spoke virtually at an AfCFTA Media Launch for Micro, Small and Medium Enterprises (MSME) on Friday.

The News Agency of Nigeria (NAN) reports that the webinar was organised by the Nigerian Association of Chamber of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Center for International Private Enterprise (CIPE).

Adediran said that developing the strategy was pertinent following its findings that most MSMEs were unaware of the existence of AfCFTA.

According to him, key findings of a survey reveal that 67 per cent of respondents showed a low level of awareness regarding the existence of the AfCFTA.

Adediran said that a significantly more substantial portion of 67 per cent of the medium-sized enterprises declared their awareness of the agreement.

He said that special attention should be given to non-digital dissemination strategies to ensure full reach of Nigerian businesses irrespective of their technological participation levels.

“Many MSMEs are often disenfranchised from international trade as a result of the complications associated with compliance to Free Trade Areas ( FTAs).

“Ensuring localised training programmes through partnerships with the private sector and international donors can help fill the technical skills gap that will hamper MSME’s uptake of AfCFTA.

“Businesses need to partner with specific agencies such as the Standard Organisation of Nigeria (SON) and National Agency for Food, Drug, Administration, and Control (NAFDAC) to ensure adherence to standards.

“This will boost the capacity of Nigeria businesses to compete in AfCFTA,” he said.

Adediran said that disaggregation by enterprise sectors showed that 97 per cent of agricultural MSMEs were not aware of the agreement, while 50 per cent of manufacturing sector enterprises were also not aware of the agreement.

He added that results showed modest positive welfare gains to Nigeria with machinery, other transport, textile and metal products as well as textile industries accounting for most of the positive effects on real wage.

He said that Nigeria also recorded modest positive welfare effects compared to other African countries.

“Our simulation results indicate that agriculture, mining, food, and machinery dilute the overall gains from terms of trade as the price of export for these commodities declines relative to the price of their imports.

“Although there is growth in the export of agricultural products, the terms of trade deterioration in this sector dilutes the overall gains from trade and changes in real wage from the agricultural sector.

“Based on predictions, Nigeria’s imports from several African countries including Botswana, Burundi, Ghana, and Namibia declined by more than 10 per cent as well as imports from China and Canada by 29.5 and 11.3 per cent respectively.

“On export, Nigeria records growth in exports of agricultural products, food, electrical, and machinery products while exports decline significantly in wood and paper industry,” he said.

The CSEA director stated that respondents expressed concern over some potential adverse effects of the AfCFTA to MSMEs in Nigeria.

According to him, a predominant concern is the deficient human and technological capacity of MSMEs in Nigeria which predisposes them to the negative spillovers potentially associated with free trade and investment exchanges within the continent.

“Most prominent among the threats is the fact that cheaper goods from other African countries will be competing against local goods in Nigeria.

“Other threats to MSMEs in Nigeria that could be associated with the AfCFTA include an increase in foreign competition, reduction in the demand for local goods, and dumping of sub-standard products,” he said.

Economy

Local Government Autonomy: FG Sets Up Committee on Enforcement

Published

3 weeks ago

August 20, 2024

Sunrise Nigeria

By Sule Musa

The Secretary to the Government of the Federation (SGF), Senator George Akume, CON, has inaugurated an Inter-Ministerial Committee to enforce the Supreme Court judgement delivered on 11th July, 2024 granting financial autonomy to Local Governments in Nigeria.

A statement by Segun Imohiosen, Director, Information & Public Relations in the office of the SGF said the members of the committee include:

1. Secretary to the Government of the Federation – Chairman

2. Hon. Minister of Finance & Coordinating Minister of the Economy -Member

3. Attorney General of the Federation & Minister of Justice – Member

4. Hon. Minister of Budget & Economic Planning

5. Accountant General of the Federation

6. Governor, Central Bank of Nigeria

7. Permanent Secretary (Federal Ministry of Finance)

8. Chairman, Revenue Mobilization Allocation & Fiscal Commission

9. Representative of State Governors

10. Representative of Local Governments

According to the statement, the committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.

Inaugurating the committee, the Secretary to the Government of the Federation, and Chairman of the Committee, Senator George Akume, this move is in line with President Bola Ahmed Tinubu’s efforts to ensure appropriate implementation to the provisions of the Constitution, which recognizes local governments as the third tier of government.

Economy

Breakdown of FAAC’s N1.358tn July allocation to FG, states, LGs

Published

3 weeks ago

August 18, 2024

Sunrise Nigeria

The Federation Account Allocation Committee said it disbursed N1.358.075 trillion to the three tiers of Government in Nigeria as July allocation.

The was contained in a statement by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga on Friday.

The disbursed N1.358.075 stems from the total gross N2,613.791 trillion revenue generated in July 2024.

In the period under review, the distributable allocation comes from Statutory Revenue of N161.593 billion, Value Added Tax revenue of N528.307 billion, N18.818 billion from Electronic Money Transfer Levy (EMTL), N581.710 billion from Exchange Difference and N13.647 billion.

The federal government received N431.079 billion, states got N473.477 billion, local government councils got N343.703 Billion, while the oil-producing states received N109.816 billion, representing 13 percent derivation or mineral revenue.

This is a slight increase from the figure distributed in June, which stood at N1.354 trillion.

A further analysis of July’s allocation showed that the sum of N99.756 billion was given for the cost of collection by the Government’s revenue-generating agencies, while N109.816 billion was allocated for transfer intervention and refunds.

Business

CBN Approves Merger of Unity and Providus Banks

Published

1 month ago

August 7, 2024

Sunrise Nigeria

The Central Bank of Nigeria (CBN) on Tuesday announced the approval for a pivotal financial accommodation to support the proposed merger between Unity Bank Plc and the Providus Bank Limited.

The Apex Bank, in a statement by its acting Director of Corporate Communications, Hakama Sidi-Ali, said the move is designed to bolster the stability of the nation’s financial system and avert potential systemic risks.

“The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders,” the statement read.

“It is unequivocal to state that the CBN’s action is under the provisions of Section 42 (2) of the CBN Act, 2007. This arrangement is crucial for the financial health and operational stability of the post-merger organisation.

“It is important to emphasise that no Nigerian bank currently faces a precarious situation comparable to that of Heritage Bank, which was recently liquidated.”

The CBN said it remains committed to safeguarding depositors’ interests and ensuring the smooth functioning of the banking sector through proactive measures and strategic interventions.