WORLD BANK RANKS NIGERIA AMONG TOP 20 IMPROVERS IN EASE OF DOING BUSINESS
Nigeria has been named among the “top 20 improvers” in the World Bank’s Ease of Doing Business rankings for 2019.
Renowned Indian-American experts on strategy, globalisation, and entrepreneurship, Anil Gupta, disclosed this in Lagos on Tuesday.
The World Bank is expected to release the full report later this month. But Mr Gupta said a preliminary report showed Nigeria was ranked along with China and India among countries that recorded significant improvements in their systems towards ease of doing business.
Mr Gupta was one of the special guest speakers at the Platform, a biennial economic summit organised by the Covenant Christian Centre, Lagos to commemorate Nigeria’s 59th Independence anniversary celebrations.
He said the areas the World Bank report pointed out in which Nigeria has shown the most improvement in the last one year include creating new electronic platforms for taxes and corporate affairs for starting new businesses, registering property as well as the issuance of construction permits.
2018, Nigeria was ranked 146 out of 190 countries on the Ease of Doing Business globally. The country dropped by a spot from the 145th position in 2017 after moving 24 places from 169 in the previous year.
JHAKI ENTERS NIGERIA’S LOGISTICS SECTOR WITH TECHNOLOGY DIFFERENTIATOR
Nigeria has an infrastructure paralysis which makes the cost of goods manufactured domestically, and those imported into the country, very expensive for the final consumers, due to dilapidated roads across the country, and an inefficient rail network which seems to have no sustainable solution.
Jhaki.com is a digital platform which provides a holistic last mile delivery of goods from manufacturers and importers within the country, by connecting them with truck owners and other carriers. It offers advanced booking, real time tracking, proof of delivery, automated receipts and a fair pricing structure.
Jhaki is a platform that connects shippers with carriers. With unmatched capabilities we reinventing freight transportation in Nigeria and sub-Saharan Africa with real-time tracking of cargo, transparent pricing and access to a rich pool of verified carriers. Our experienced professional team solves the industry’s biggest problems using the best technology available in order to promote connections with carriers.
It seeks to empower carriers by intelligent delivery of freight, and hopes to unlock opportunities for shared prosperity in Nigeria’s logistics industry while offering shippers to book affordable, reliable and high quality services.
According to Brainerd Odiete its Co-founder, Jhaki hopes to offer the best customer experience with cutting edge secure technologies to meet and surpass the expectations of customers. The key differentiator between it and the competition is the multi freight delivery option through roads, rail and inland waterways.
WHY NIGERIA’S ECONOMIC GROWTH IS SLOW – REPORT
The decline in government revenues and the slow and uneven growth in key sectors of the economy are key factors in the stagnation of the nation’s economic development, an economic analysis conducted by the Centre for Democracy and Development (CDD) shows.
The Assessment of the Effectiveness of Government Policies and Programmes on Economic Growth and Development, 2016 -2019, which undertakes to review the main economic goals of the current government, examines the implementation of policies and programmes and broadly assesses their effectiveness. It observed that growth rates while turning positive, have been lower than stated targets.
GDP growth rates, oil and non-oil revenues, federal government revenue and expenditure and particularly capital expenditure have been significantly lower than anticipated through the periods of 2016 to 2018.
Such anticipations were captured in the Economic Recovery and Growth Plan(ERGP) and in subsequent annual budgets.
“It is clear that the estimates, projections and expectations for GDP growth have been significantly different from the actual outcome, although the performance in Q4 2018 and Q1 2019 are more encouraging,” stated the report.
For the last one year, the impetus for growth has mainly come from the non-oil sector.”
It identified that oil GDP growth rates were negative in the last three quarters of 2018 and so could not be relied upon to power sustainable growth and recovery
BUHARI WARNS FIRS, OTHERS OF SEVERE CONSEQUENCES OF FAILURE TO MEET TARGETS
President muhammadu buhari, yesterday promised there will be ‘severe consequences’ if any of nigeria’s revenue-generating agencies fails to meet its set targets.
The president issued the warning during his national independence address on Tuesday morning at 7am.
Though buhari did not single out any agency and wasn’t specific on his warning, many believe he was mainly directing his statement to the federal inland revenue service (firs) whose boss, babatunde fowler, was recently queried by the presidency for consitently under performing in his revenue collections between 2015 to 2018.
Buhari said: “our revenue-generating and reporting agencies will come under much greater scrutiny, going forward, as the new performance management framework will reward exceptional revenue performance, while severe consequences will attend failures to achieve agreed revenue targets.”
The president’s warning came weeks after the presidency issued a query to the chief executive of the firs babatunde fowler, over worsening tax collection since 2015.
In the query dated august 8, the chief of staff to the president, abba kyari, said the presidency “observed significant variances between the budgeted collections and actual collections for the period 2015 to 2018.”
Kyari observed that the firs in 2015 set a n4.7 trillion revenue target but was only able to make n3.7 trillion in its actual collection. In 2016, 2017 and 2018, the target collections were n4.2 trillion, n4.8 trillion and n6.7 trillion but the actual collections were n3.3 trillion, n4.0 trillion and n5.3 trillion, respectively.
Worried by the variances, kyari demanded for some explanations from fowler before his appointment in 2015, the only year firs could not meet its collection target was 2006 from year 2000.
Kyari then said: “accordingly, you are kindly invited to submit a comprehensive variance analysis explaining reasons for the variances between the budgeted collections and actual collections for each main tax item for each of the years from 2015 to 2018.”
In his response, fowler agreed that actual tax collections since the beginning of buhari’s administration were lower than the 2012-2014 period under former president goodluck jonathan, in general terms. But he said that firs under him has performed better regarding specific non-oil tax types, such as vat and cit.
He, then, associated the general lower collection since 2015 to oil market crisis which has seen a fall in commodity price compared to the period under jonathan, and recession “which slowed down economic activities.”
NSE OPENS TRADING FOR OCTOBER WITH 1.14% LOSS
Activities on the Nigerian Stock Exchange (NSE) opened for the first trading day in October with a loss of 1.14 per cent.
It was reported that the lull followed negative sentiment by investors.
Specifically, the All Share Index (ASI) decreased by 315.69 points or 1.14 per cent to close at 27,314.87 compared with 27,630.56 posted on Monday.
Also, the market capitalisation of listed equities declined by N154 billion to close at N13.296 trillion from N13.450 trillion reported on Monday.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Mobil Nigeria, Total Nigeria, Nigerian Breweries, Guaranty Trust Bank and MRS Oil Nigeria.
Analysts at Afrinvest Limited maintained its bearish stance for the market, although the current low prices of stocks present opportunities for bargain hunting.
Market breadth closed negative, with 11 gainers against 24 losers.
Fidson Healthcare led the losers’ chart in percentage terms dropping by 10 per cent to close at N4.05 per share.
Africa Prudential followed with a decline of 9.97 per cent to close at N3.52, while Ecobank Transnational dropped by 9.94 to close at N7.25 per share.
MRS Oil Nigeria lost 9.84 per cent to close at N16.95, while Conoil shed 9.82 per cent to close at N15.15, per share.
Conversely, Neimeth International Pharmaceuticals recorded the highest price gain of 10 per cent, to close at 44k per share.
Continental Reinsurance came second with a gain 9.66 per cent to close at N2.27, while Associated Bus Company rose by 8.82 per cent to close at 37k per share.
Wapic Insurance appreciated by 5.88 per cent to close at 36k, while Honeywell Flour Mills appreciated by 5.26 per cent to close at N1 per share.
The investors traded a turnover of 175.78 million shares worth N2.57 billion in 3539 deals.
This was against 194.79 million shares valued at N3.06 billion which exchanged hands in 2,910 deals on Monday.
Transactions in the shares of Guaranty Trust Bank topped the activity chart with a total of 25.29 million shares valued at N684.18 million.
Transcorp followed with a turnover of 20.76 million shares worth N21.18 million, while NASCON Allied Industries traded 20.01 million shares valued at N274.08 million.
FBN Holdings sold 17.39 million shares worth N94.28 million, while Access Bank transacted 10.61 million shares valued at N80.17 million