APA – Lagos (Nigeria)
The report that the Economic Community of West African States has imposed heavier financial sanctions on the Niger junta and entities supporting them including the governments of Mali and Burkina Faso is one of the trending stories in Nigerian newspapers on Wednesday.
The Punch reports that the Economic Community of West African States has imposed heavier financial sanctions on the Niger junta and entities supporting them including the governments of Mali and Burkina Faso.
The development came after a diplomatic mission by the African Union, ECOWAS, United Nations and the United States to resolve the political impasse in Niger hit a brick wall on Tuesday as the military junta refused to grant audience to the delegations.
The military leaders also snubbed the Acting US Deputy Secretary of State, Victoria Nuland, and denied her access to the coup leader, Gen. Abdourahmane Tchiani and ousted President, Muhammed Bazoum, who was being held in the presidential palace.
Some military officers led by Tchiani overthrew Bazoum on July 26 leading to a flurry of sanctions imposed on Niger by ECOWAS to compel them to restore the ousted president to power.
The newspaper says that the Manufacturers Association of Nigeria has said due to a harsh economic environment, the value of manufacturing production decreased from N7.39tn in 2021 to N6.67tn in 2022, indicating a decline of N720bn.
The Chairman, MAN, Apapa branch, Frank Onyebu, made the revelation on Tuesday during the annual general meeting of the branch.
Onyebu said 2022 was mostly characterised by a harsh operating environment, themed by record-high inflationary pressure, high interest rates, multiple taxation, high energy costs, forex illiquidity, shortage of raw materials, among others.
He added that supply shortages, surging material prices and difficulty in hiring qualified staff stalled the growth of the manufacturing sector.
He said, “The value of the manufacturing sector’s factory output declined to N2.68tn in the second half of 2022 from N3.73tn recorded in the corresponding half of 2021.
“This represented N1.05tn or 28 per cent decline over the period under review. There was also a decline of N1.31tn or 32 per cent when compared with N3.99tn recorded in the preceding half.
“The value of manufacturing production totalled N6.67tn in 2022 as against N7.39tn recorded in 2021. Manufacturing production was severely affected in the second half of 2022 by the absence of implementation of new capital projects by the government as they focused on the election.”
Speaking further, Onyebu noted that many manufacturers exited Nigeria to neighbouring countries in 2022 due to the harsh operating environment.
He added that more were planning to leave, while others were hanging on by a thread, hoping for the new administration to turn things around.
The Guardian reports that the Manufacturers Association of Nigeria Export Promotion Group (MANEG) has reiterated its call on the Federal Government to prioritise non-oil exports as a strategic move to boost the economy.
This call was made at the Nigeria Employers Consultative Association (NECA) yearly summit held in Abuja.
Speaking at the summit, themed, ‘Trade and Non-oil Export: Changing the Narrative for Rapid National Development’, the Acting Chairman of MANEG and Director, External Affairs, at British American Tobacco West and Central Africa, Odiri Erewa-Megisson, emphasised the importance of government’s support for non-oil export businesses in growing revenue.
She said: “It is important that the government steps up to support non-oil export businesses by offering incentives and allocating funds specifically to foster revenue growth in the country. The cost of running a business in Nigeria is hefty, compared to other places in the world. So, the government must provide incentives. That way, exporters can have a fair chance to compete with their counterparts in other countries and make a mark in terms of revenue growth.”
She stressed the need for the government to streamline regulatory agencies and alleviate the burdensome procedures faced by exporters, while commending the harmonisation of the foreign exchange (FX) rates, stressing that exporters should receive priority in accessing the FX market.
In his keynote address, the President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, who was represented by the Director General of AfDB, Nigeria, Lamin Barrow, emphasised the importance of accelerating resource mobilisation for Nigeria’s economic growth.
“Nigeria’s revenue to GDP ratio at eight per cent, which is among the lowest in the world and lags behind the West African Average of 13 per cent. Currently, we face huge fiscal deficits estimated at six per cent of GDP due to high expenditure amidst dwindling revenues from crude oil exports. To address this, we must prioritise measures such as improving tax collection and administration, streamlining the tax system and blocking leakages in tax collection,” Adesina said.
He added that boosting agricultural productivity, developing value chains and attracting more private sector investments could be a sure route to sustainable revenue generation and economic diversification.
The newspaper says that President Bola Tinubu, yesterday, expressed his administration’s commitment to break the cycle of overreliance on borrowing for public spending, and the resultant burden of debt servicing it places on management of limited government revenues.
Inaugurating the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, the President charged the committee to improve the country’s revenue profile and business environment, as the Federal Government moves to achieve 18 per cent tax-to-GDP ratio within three years.
Tinubu, at the Presidential Villa, directed the committee to achieve its one-year mandate, which is divided into three areas: fiscal governance, tax reforms, and growth facilitation. He also directed all government ministries and departments to cooperate with the committee towards achieving its mandate.
The President, while stressing the significance of its assignment, informed the committee that his administration carries a burden of expectations from citizens who want government to make their lives better.
He said: “We cannot blame the people for expecting much from us. To whom much is given, much is expected. It is even more so when we campaigned on a promise of a better country, anchored on our Renewed Hope Agenda. I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people.”
Acknowledging the country’s current international standing on tax, the President said the nation is still facing challenges in sectors, such as ease of tax payment and its tax-to-GDP ratio, which lag behind even Africa’s continental average.
Oyedele, pledged the commitment of members to give their best in the interest of the nation. “Many of our existing laws are outdated; hence they require comprehensive updates to achieve full harmonisation, to address multiplicity of taxes, and remove burden on the poor and vulnerable, while addressing the concerns of all investors, big and small,” he said.
GIK/APA
Nigerian press zooms in on plans for fresh sanctions on Burkina Faso, Mali, others
