Business

Lagos is Open For Business —Sanwo-Olu

Lagos State Governor, Mr. Babajide Sanwo-Olu, during an interview on ‘Business Live with Ian King on Sky News’ in London, on Friday, speaks on Lagos participation in the Lord Mayor’s Show in London, the inauguration of the Lagos International Financial Centre Council, commitment of his administration to attract more investments to the State and President Bola Tinubu’s government

What kind of growth are you expecting in Lagos State?

Right now, the population of Lagos is over 20 million and we will be conducting another census later next year, maybe by the second quarter or third quarter. But in terms of GDP, we have seen two, three percent Gross Domestic Product (GDP) growth in the last four years. So, it is about $130 billion now. In terms of numbers, it makes the state the fifth-largest GDP growth in Africa. The GDP of Lagos is actually bigger than the GDP of Kenya; is bigger than Ghana, is bigger than Rwanda and is bigger than Senegal. So, Lagos as a sub-national, is actually very big in how it stands and how it sits and it is all of that conversation that we think a lot of people need to know what is happening in Lagos and how we can use the Lagos story to sort of tell the African story and be able to put it into where it should really be.

You just established the Lagos International Financial Council. What are you seeking to achieve with that?

The whole idea is for us to be able to let the world know what is happening in Lagos. We are starting with London because we have a lot of history with the city of London and we want them to know what is happening in Lagos. The Council will set up strategies where we can handhold companies; we can handhold British companies and investors, foreign direct investors that want to come into Lagos. Let us know what are the red tapes. What are the things they want us to do? The regulatory framework and legal framework. What kind of permits do they need to have? What kind of approvals do they need to have?

The Council is going to set up structures where communication and collaboration would happen; where we can set them on the right trajectory; where we can indeed listen to them and know what the things they require us to do are. And going forward, we have been able to also analyse how well we are doing that to be able to respond to the needs of the private sector at that time. And I on the political side can indeed give it all of the fit. We are looking at business to government, and business to business, but pretty much just making sure that the environment is suitable for business. It is conducive and we can indeed grow the economy of the city and the state, create jobs for our people, and by extension also create wealth for the investors who are coming into the system.

In seeking to attract international investments into Lagos, what are your priorities? Which are the sectors that you are most keen to expand?

The tech industry is very important. For the past three or four years, Lagos has remained the tech startup capital in Africa. So, there is still a lot of depth that we need to bring into that space. The financial services. Yes, there are a lot of financial products that still need to be deepened in that sector. So, we want to see a lot more international financial organisations come into Lagos. We want the creative industry to also have a play in our economy. Then, of course, general and consumer products. Because of the population we have, we believe anything indeed could have a market. You could have your share of the market. Petrochemicals, consumer products. Any of those three or four areas will indeed do very well in Lagos.

It sounds from what you are saying, the economy is very service-focused.

Pretty much. The reason is because we are just a little tiny space. We don’t have that much arable land for farming or agricultural products. You can see us leveraging on the final part of it which is value addition. But in terms of real agricultural land space, we don’t have the space. We can do very well because of the population in terms of services, technology, communication, IT, infrastructure, and anything around that space.

Obviously, Nigeria as a whole is a very young country. It is a young population. Is Lagos pretty similar in that respect?

We lead that population; we lead that young, beautiful and capable population. About 60 to 65 percent of our population are under 35 and it is growing. They are very capable, resource-driven and intelligent. So, these are some of the skills we want the organised practice to come and annex. You could be in Lagos and be working for a company in the United Kingdom or Europe with the kind of infrastructure that we are putting in place and we know that they are ready and good to go. So those are the future of work you can get in Lagos. The population is there.

One of the problems Nigeria has had historically is holding onto its talent and stopping people from going to work overseas. Is that still an issue for you and are you finding it easy to retain talent?

Well, it is still an issue, but that is why we are here and that is why I am having this conversation and we are trying to do the collaboration. That is one of the reasons the Council was set up for them to see us all as a global market, where it doesn’t matter where you are. We want to still be able to retain them as Nigerians back home, but give them the global opportunity, that they all seek to benefit from. We are trying to say we can de-risk some of those risks that come with trying to not secure the talent. They can be back in Nigeria, in Lagos while they are working for international companies. That is what technology does these days.

Who do you think you are competing with primarily?

We are truly competing with ourselves and we cannot sit back and just be okay with the status quo. No, we cannot. We know there is a whole lot that we can give as a state, as a people and as a country. We are the largest in the continent in terms of GDP and population. But we need to double up. We need to let the world know what the potentials are. We have a new government at the central; the central government is just less than six months old. Last week, the President (Bola Tinubu) was in Saudi Arabia. In the last two months, he has been in India, UAE and Saudi Arabia. His Vice President (Kashim Shettima) has been to China. They have been to Brazil. So, we are all out now, just telling the real story of what is happening in our country and me in my state so that people will understand that there is still a lot of energy we have. There are a lot of people that we need to be able to show out and bring investment, create wealth, reduce poverty and give people a sense of what the world has for us to be able to take on.

It sounds like the United Kingdom is the biggest foreign direct investor in Nigeria. From what you are saying, it sounds as though that might not be the case for too much longer if you have Saudi money and Chinese money coming in differently….

That is why they shouldn’t miss this opportunity. The Saudis are coming, the Chinese and the Americans are there already. The British are there because historically in the colony of Lagos, Nigeria and Britain have been for almost two centuries now. But we still cannot just leave the comfort zone. We have been there for 30 or 40 years but we still need to be creative, innovate and think out of the box. We need to be able to tell the stories differently because the world is actually becoming a lot more competitive.

You know competition is critical. Sustainability is very important for us. So, we need to also be able to come and show, and that is one of the things we have been able to achieve from the Lord Mayor’s Show just for people to know what we are about, what we are doing and to be able to let the business community in the United Kingdom where there is a larger diaspora population know in the United Kingdom that we are also open for more business.

President Bola Tinubu introduced a wide range of economic reforms shortly after he was elected. We are six months on from that now. Have they achieved what you would have hoped they would have done?

I believe six months is a short term but in terms of a clear strategy and focus, he is there. What he has done, no President in Nigeria has been able to take the audacity to remove the subsidy on petrol pump prices. That in itself will save the country about $2.5 billion. These are funds that can go into other areas in education, health and poverty reduction. But more importantly is what he brings to the table in terms of having been a Governor in Lagos State before. That is one.

Secondly, the fact that he is challenging his cabinet members to say to them, if you don’t sit up and do the right thing, I am going to kick you out. He had said that to them two, three weeks ago and he said to them that we got a job to do, we have to do it well. So, what we are asking our citizens is, let us give him a bit more time. It is pretty tight up right now, but let us give him a bit more time. He set up a very bold, laudable agenda in his Renewed Hope. I think another six months from now we will begin to see the relief coming out from all of his interventions and I believe that the population will be better off for it.

Business

Ogun Set To Sign MoU With OPS On Olokola Deep Seaport

The Ogun State Government and the Organised Private Sector (OPS) have concluded plans to sign a Memorandum of Understanding (MoU) on the construction of the Olokola Deep Seaport located in Ogun Waterside Local Government Area of the state.

Governor Dapo Abiodun made this known during a breakfast meeting with Chief Executive Officers of the OPS in Abeokuta, the state capital, on Wednesday.

Governor Abiodun noted that the construction of the Olokola seaport would provide another opportunity for companies in the state to move their goods and equipment in addition to the Gateway Agro-Cargo International Airport, which is almost on completion stage, and the planned Dry port to be located at Kajola, an outskirt of the state capital.

Prince Abiodun said: “I want to share with you the fact that whilst we are talking about our road, rail and air transport, we will be signing very soon a Memorandum of Understanding with the private sector players for the construction of our seaport in Olokola.

“This is another giant step to ensure that we enable businesses to continue to thrive in our state.”

The governor said that his administration is working towards putting an end to the multiplicity of taxes in the state, adding that the reforms already put in place by the Ogun State Inland Revenue Service would definitely put pay to the issue.

He also urged businesses to patronize government whenever they are in need of land, saying that all land belonged to the government.

“On the harmonization of taxes, we have put in a lot of reforms on our Inland Revenue Service.

“Be rest assured, be patient with me, slowly and surely, we will remove all these multiplicities of taxes.

“We are also concerned about our physical planning as well. The lands department and physical planning are now working collaboratively to ensure that all the problems we have had in the past are resolved.

“All lands belong to the government. My advice to you is that if you want to buy land, come to the state. We have ensured that any land to be sold to you is properly enumerated and compensated.

“So, please, I want to discourage all of us to desist from buying land from land speculators,” he said.

Abiodun said that his administration would be distributing 5,000 Certificates of Occupancy (CofO) this Friday.

According to him, the state is now at a vantage position to continue to issue out Certificate of Occupancy to subscribers with a newly acquired equipment that can sign 1000 CofOs daily.

Abiodun called on the OPS in the state to give back to their various host communities by either taking advantage of the state government adopt a school or primary health care center project.

The governor spoke on the importance of businesses imbibing the culture of technology transfer, which would further assist the country to move forward technologically.

He reiterated the commitment of his administration to ensure steady and uninterrupted power supply soon through the Ogun Light Up Project.

The governor noted that his administration deliberately laid a lot of emphasis on reconstructing roads that connect the Ogun with other states of the country, especially Lagos, the economic capital of the country.

While commending the OPS for joining hands with his administration at repositioning its security architecture through the rejigging of the Ogun State Security Trust Fund, Governor Abiodun added that his administration would continue to do all it can to make the state the safest place to live, work or play.

Earlier in his address, Commissioner for Industry, Trade and Investment, Mr Adebola Sofela assured that the state government would continue to create an enabling environment for businesses to thrive.

He said the present administration would continue to partner with industries in the state with a view of propelling the common interest of both the government and industries to greater heights

Also speaking, Ogun State Chairman of the Manufacturers Association of Nigeria (MAN), Chief George Onafowokan, acknowledged the position of the state as the best place for industries to thrive.

He, however, called on the state government to continue to work towards ensuring that the enablers for businesses to thrive are readily made available in the state.

Speaking on behalf of the Agbara Cluster, the Director of African Industry Group, Chief Sohan Baghla disclosed that they have being able to provide over ten thousand jobs for the people of the state, adding that a greater percentage of their investments are in steel production and processing, aluminium production and processing, glass, chemicals, steel rolling mills, all situated in the Agbara business cluster.

Business

2024 Budget Presentation: President Tinubu’s full speech at National Assembly

President Bola Tinubu, on Wednesday, presented the 2024 appropriation bill before a joint session of the National Assembly.

See full text of President Tinubu’s speech at the budget presentation

[FULL 2024 BUDGET SPEECH]

Budget of Renewed Hope

Delivered By:

His Excellency, Asiwaju Bola Ahmed Tinubu, GCFR

President, Federal Republic of Nigeria

At the Joint Session of the National Assembly, Abuja

Wednesday, November 29, 2023

— The Vice President, Senator Kashim Ibrahim Shettima, GCON

— The Senate President, Distinguished Senator Godswill Akpabio, GCON

— The Right Honourable Speaker, Tajudeen Abbas

— APC National Chairman, His Excellency, Abdullahi Umar Ganduje

— Executive Governors here present

— Distinguished Leaders and Members of the National Assembly

— Secretary to the Government of the Federation

— Chief of Staff to the President

— Other Senior Government Officials here present

— Gentlemen of the Press

— Ladies and Gentlemen

1. In furtherance of my sacred duties and obligations as President of the Federal Republic of Nigeria, it is my honour to be here today to present my administration’s 2024 Budget Proposal to this Joint Session of the 10th National Assembly. This moment is especially profound and significant to me because it is my first annual budgetary presentation to the National Assembly.

2. Distinguished Senators and Honourable Members of the National Assembly, I commend your swift consideration and passage of the 2023 Supplementary Appropriation Bills and the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper. Your prompt action underscores your devotion to economic development and to the greater welfare of our people. It also highlights your desire to work in close collaboration with the Executive branch. We do not serve ourselves. We must always strive to work together to serve and benefit the people of our beloved country.

3. I am confident that the National Assembly will continue to work closely with us to ensure that deliberations on the 2024 Budget are thorough but also concluded with reasonable dispatch. Our goal is for the Appropriation Act to come into effect on the 1st of January 2024.

4. It is, by now, a matter of recorded history that my very first fiscal intervention as President of this great nation was to end the fuel subsidy regime which had proven to be so harmful to the overall health of our national economy. The second was to negotiate and subsequently present a supplementary budget to enable my government to fund the items needed to restore macro-economic stability and mitigate the harsh impact of subsidy removal.

The third was to secure a second supplementary budget, this time to enable us to keep our promises to promote national security, invest in infrastructure and provide much needed support to the most vulnerable households in our society.

In swearing-in my cabinet and reflecting on the unique challenges facing us, I invited the Ministers to imagine that we are attempting to draw water from a dry well. Today, I stand before you to present our Budget of Renewed Hope; a budget which will go further than ever before in cementing macro-economic stability, reducing the deficit, increasing capital spending and allocation to reflect the eight priority areas of this Administration. The budget we now present constitutes the foundation upon which we shall erect the future of this great nation.

PREVAILING ECONOMIC ENVIRONMENT

Economic conditions remain challenging both abroad and at home. Despite lingering Post-Covid supply and production bottlenecks, armed conflict in various parts of the world and restrictive monetary policies in major economies, we expect global growth to hover around 3.0 percent in 2024. This relative low rate has significant implications for our economy due to our current reliance on importation.

Distinguished Senators, Honourable Members: despite the global headwinds, the Nigerian economy has proven resilient, maintaining modest but positive growth over the past twelve months.

Inflation has trended upward due to weak global conditions. To contain the rising domestic prices, we will ensure effective coordination of fiscal and monetary policy measures, and collaborate with sub-national governments to address structural factors driving inflation in Nigeria.
The Budget proposal meets our goal of completing critical infrastructure projects which will help address structural problems in the economy by lowering the costs of doing business for companies and the cost of living for the average person, The Honourable Minister of Budget and Economic Planning will provide full details of this proposal.

PERFORMANCE OF THE 2023 BUDGET

Distinguished Senators and Honourable Members, an aggregate revenue of 11.045 trillion naira was projected to fund the 2023 Budget of 24.82 trillion naira with a deficit of about 6.1 percent of GDP.
As of September 30, the Federal Government’s actual aggregate revenue inflow was 8.65 trillion naira, approximately 96 percent of the targeted 8.28 trillion naira.
Despite the challenges, we continue to meet our obligations.

THEME AND PRIORITIES OF THE 2024 BUDGET

Distinguished Senators, Honourable Members, permit me to highlight key issues relating to the budget proposals for the next fiscal year. The 2024 Appropriation has been themed the Budget of Renewed Hope. The proposed Budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security

Defence and internal security are accorded top priority. The internal security architecture will be overhauled to enhance law enforcement capabilities and safeguard lives, property and investments across the country.

Human capital is the most critical resource for national development. Accordingly, the budget prioritizes human development with particular attention to children, the foundation of our nation.
To improve the effectiveness of our budget performance, government will focus on ensuring value for money, greater transparency and accountability. In this regard, we will work more closely with development partners and the private sector.

To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024.

A stable macro-economic environment is important to catalyse private investment and accelerate economic growth. We have and shall continue to implement business and investment friendly measures for sustainable growth.

We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent in 2024.

In preparing the 2024 Budget, our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium term expenditure framework is Nigeria’s commitment to a greener future.

Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation and other sectors. This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.

As we approach COP 28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition.

It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.

Together, we will strive for Nigeria to emerge from COP 28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship.

Distinguished members of the National Assembly, the revised 2024-2026 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) sets out the parameters for the 2024 Budget.
After a careful review of developments in the world oil market and domestic conditions, we have adopted a conservative oil price benchmark of 77.96 US Dollars per barrel and daily oil production estimate of 1.78 million barrels per day. We have also adopted a Naira to US Dollar exchange rate of 750 naira per US Dollar for 2024

Accordingly, an aggregate expenditure of 27.5 trillion naira is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion naira while debt service is projected to be 8.25 trillion naira and capital expenditure is 8.7 trillion naira.

Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.

Budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023 which represents 6.11 percent of GDP.

The deficit will be financed by new borrowings totalling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds and 1.05 trillion naira drawdown on multilateral and bilateral loans secured for specific development projects.

Our government remains committed to broad-based and shared economic prosperity. We are reviewing social investment programmes to enhance their implementation and effectiveness. In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households. In addition, efforts will made to graduate existing beneficiaries toward productive activities and employment.

We are currently reviewing our tax and fiscal policies. Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this Administration. Government will make efforts to further contain financial leakages through effective implementation of key public financial management reforms.

Distinguished Senators and Honourable Members, in view of the limited resources available through the federal budget, we are also exploring Public Private Partnership arrangements to finance critical infrastructure

We, therefore, invite the private sector to partner with us to ensure that our fiscal, trade and monetary policies, as well as our developmental programs and projects succeed in unlocking the latent potential of our people and other natural endowments, in line with our national aspirations.
Distinguished Senators and Honourable Members, this Budget presentation would be incomplete without commending the patriotic resolve of the 10th National Assembly to collaborate with the Executive on our mission to renew hope and deliver on our promises to the Nigerian people. I assure you of the strong commitment of the Executive to sustain and deepen the relationship with the National Assembly.

As you consider the 2024 Budget estimates, we trust that the legislative review process will be conducted with a view to sustaining our desired return to a predictable January-December fiscal year.
I have no doubt that you will be guided by the interest of all Nigerians. We must ensure that only projects and programs with equitable benefits are allowed into the 2024 Budget. Additionally, only projects and programs which are in line with the sectoral mandates of MDAs and which are capable of realizing the vision of our Government should be included in the budget.

As a Government, we are committed to improving the lot of our people and delivering on our promises to them. The 2024 Budget has the potential to boost performance, promote the development of Micro, Small and Medium-sized Enterprises, enhance security and public safety, and improve the general living conditions of our people.

In closing, I am confident that these budgetary allocations and directives will set Nigeria on a transformative path towards a sustainable and resilient energy future, fostering economic growth, job creation, and environmental preservation.

It is with great pleasure, therefore, that I lay before this distinguished Joint Session of the National Assembly, the 2024 Budget Proposals of the Federal Government of Nigeria, titled The Renewed Hope Budget.

I thank you most sincerely for your attention. May we collectively chart the course towards a brighter and cleaner future for our great nation.

May God bless the Federal Republic of Nigeria

Business

Tinubu Presents N27.5t 2024 Budget, Security, Job Creation Top Priorities

President Bola Tinubu has said that Nigeria’s national defence and internal security, local job creation, macro-economic stability, investment environment optimisation, human capital development, poverty reduction, and social security are some of the top priorities of the 2024 Budget of Renewed Hope.

The President told a joint session of the National Assembly on the 2024 Federal budget proposal on Wednesday in Abuja that the nation’s internal security architecture would be overhauled to enhance law enforcement capabilities with a view to safeguarding lives, property, and investments across the country.

He said the proposed budget prioritises human capital development, with particular attention given to children, because human capital remains the most critical resource for national development.

“To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. In this regard, we will work more closely with development partners and the private sector.

“To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024”, the President said.

On the economy, he said that a stable macro-economic environment is crucial in his administration’s bid to catalyse private investment and accelerate economic growth; hence, his government shall continue to implement business and investment friendly measures for sustainable growth.

“We expect the economy to grow by a minimum of 3.76 per cent, above the forecasted world average. Inflation is expected to moderate to 21.4 per cent in 2024. In preparing the 2024 Budget, our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.

“Emphasising public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation, and other sectors. This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.

“As we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition. It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.

“Together, we will strive for Nigeria to emerge from COP28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship”, President Tinubu said.

He said that a conservative oil price benchmark of US$77.96 per barrel, and a daily oil production estimate of 1.78 million barrels per day were adopted after a careful review of global oil market trends, and that a Naira to US$ exchange rate of N750 per US$ was adopted for 2024 as well.

Giving a breakdown of the 2024 Appropriation Bill, the President said: “Accordingly, an aggregate expenditure of N27.5 trillion is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is N9.92 trillion, while debt service is projected to be N8.25 trillion and capital expenditure is N8.7 trillion. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45 per cent of the expected total revenue.

“The budget deficit is projected at N9.18 trillion in 2024 or 3.88 per cent of Gross Domestic Product (GDP). This is lower than the N13.78 trillion deficit recorded in 2023, which represented 6.11 per cent of GDP. The deficit will be financed by new borrowings totaling N7.83 trillion, N298.49 billion from privatisation proceeds, and N1.05 trillion drawn down on multilateral and bilateral loans secured for specific development projects.”

President Tinubu said his administration remained committed to broad-based and shared economic prosperity, adding: “We are reviewing social investment programmes to enhance their implementation and effectiveness. In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households”.

He also said efforts would be made to further contain financial leakages through the effective implementation of key public financial management reforms.

The President commended the patriotic resolve of the 10th National Assembly to collaborate with the Executive on the mission to renew the hope of Nigerians and deliver on the promises made to Africa’s largest population.

“As you consider the 2024 Budget estimates, we trust that the legislative review process will be conducted with a view to sustaining our desired return to a predictable January – December fiscal year. I have no doubt that you will be guided by the interest of all Nigerians.

“We must ensure that only projects and programs with equitable benefits are allowed into the 2024 Budget. Additionally, only projects and programs that are in line with the sectoral mandates of MDAs (Ministries, Departments and Agencies), and those which are capable of realising the vision of our administration should be included in the budget”, President declared.