Nigeria has recorded a significant improvement in its import trade figures as it saved N4.2tn in 2012 owing to a decrease in the importation of manufactured goods.

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, disclosed this during the opening ceremony of the ministerial session of the National Council on Industry, Trade and Investment, in Ibadan, Oyo State, on Thursday.

Aganga further revealed at the meeting with the theme, ‘Industrialisation as the driver of economic development, revenue diversification and wealth creation,’ that the country saved about N817bn due to a decline in the importation of textile, cement and vegetable oil within the same period.

He said, “In terms of trade, we have done very well. Nigeria’s external trade fell by 4.3 per cent, from N29tn to about N28tn in 2012. However, the good and exciting news is that the fall was as a result of a sharp decrease in the value of import from about N9.8tn to about N5.6tn by the end of 2012. That was a decrease of about 43 per cent in savings of more than N4.2tn, which has gone to the increase in the foreign reserves of our country.

“The last time that we had such a big fall in import, for a country that is largely import dependent, was in 2008; and that fall was about N1tn. This shows in real sense, a decreasing over-reliance on import for domestic consumption and a significant savings on our foreign exchange. That is why foreign exchange is going up.

“Specifically, for vegetable oil production, import fell from about N1tn to about N577bn; textile imports fell from about N190bn to N94bn, representing about 82 per cent decrease; while cement import fell from about N219bn to about N27bn. In total, these three sectors only contributed to more than N817bn to our foreign reserves because we are less dependent on import.”

The minister noted that the country also recorded significant improvement in non-oil revenue earnings within the last seven years with the non-oil sector accounting for 30 per cent of the nation’s revenue earnings in 2012, as against 15.5 per cent recorded in 2005.

He said, “Now, if you look at our exports, the figure has gone up by 15.5 per cent from about N19.4tn to about N22.4tn in 2012. In terms of oil and non-oil revenue, in 2005, oil revenue contributed about 94 per cent of our foreign earnings, while the non-oil sector contributed only six per cent.

“If you look at the same statistics in 2012, the oil sector contributed about 69 per cent while the non-oil sector contributed 30 per cent.”

As part of efforts towards diversifying the nation’s economy, enhance job creation and wealth generation, Aganga said his ministry had begun the implementation of its Nigerian Industrial Revolution Plan, based on areas where the country had comparative and competitive advantage

Sincere 9gerian: Another great news. We'r making progress. The various reforms are already impacting on the system. I'm just eagerly awaiting the explosive improvement in the power sector in the next couple of months. History is unfolding before our eyes.

Sealeddeal: This is a great news and i wait for a time when all this macroscopic improvement will be felt by the poor people in Nigeria.i believe that with the great people that GEJ have in his cabinet,soon,Nigerians in grassroot will appreciate the work being done to transform nigeria into one of the greatest Nations in the world. Thumps up President Goodluck Jonathan for this yet another wonderful stride.

Sealeddeal: This is a great news and i wait for a time when all this macroscopic improvement will be felt by the poor people in Nigeria.i believe that with the great people that GEJ have in his cabinet,soon,Nigerians in grassroot will appreciate the work being done to transform nigeria into one of the greatest Nations in the world. Thumps up President Goodluck Jonathan for this yet another wonderful stride.

taharqa: Yea! Great point. Howeva, the People must also be aware of what is going on in the Economy. They must be Sensitive of the Opportunities popping within the Economy, and must be ready with that right Information to take advantage of it for themselves. Ultimately, it is us (the People) who decides what we wud get out of the Economy, and we cant do that if we continued to sit on our azzes complaining or smhow hoping that smone wud get us our share, whilst the opportunities are creatd and taken by others. The Govt/State can only do as much; it is d Individual who must seek out his/her place within the Economy and define for himself the share he wud get from it. He cud only hope to do this if he had d RIGHT INFO about when, where and what d Opportunities are. And acts on it.... INFO, OPPORTUNITIES and d DRIVE to take them are the Key words

Following two years of operation of the N100bn intervention fund, the Textiles, Cotton and Garment subsector appears to be regaining breath, LAYI ADELOYE reports

Stakeholders in the Nigerian Cotton, Textile and Garment subsector have assessed th performance of the N100bn intervention fund given to the industry two years ago, submitting that it has revived operations.

They, however, called on the Federal Government to make available to the sector an intervention fund of about N1n, in view of the current economic reality that has made the initial N100bn seed fund inadequate.

Similarly, they called for a longer tenor rate on the repayment of the loans in order to aid the growth and development of the sector.

The operators also commended the Bank of Industry for its painstaking approach to the fund’s management, mobilisation and disbursement, which, according to them, resulted in the revival of the once comatose subsector.

Meanwhile, the bank has said that about 60 per cent of the N100bn initial intervention fund offered by the government had been disbursed to the sector in the last two years.

All these came out at a validation workshop organised by the Bank of Industry, in collaboration with the United Nations Industrial Development Organisation, in Abuja, on Tuesday.

In 2010, the Federal Government introduced a N100bn Cotton Textile and Garment Revival Scheme, managed by the Bank of Industry to reverse this ugly trend of progressive industry collapse and ensure a rapid resuscitation and upgrading of the entire CTG value-chain.

Two years down the line, the subsector’ stakeholders appraised the funds’ performance, saying substantial portion of the fund had been successfully disbursed to beneficiaries, with the impact emerging “very encouraging.”

Recent figures from the Manufacturer’s Association of Nigeria revealed that the capacity utilisation in this subsector has increased tremendously, from 29.14 per cent in 2010 to 49.70 per cent in 2011. In addition, a number of hitherto moribund textile mills have been reopened, with about 8,070 jobs saved, just as over 5,000 new jobs have been created.

The Minister of Trade and Investment, Mr. Olusegun Aganga, recalled the developments in the subsector, stressing that the subsector had gone through ups and downs since 1960 but had just started getting some reprieve through the intervention funds.

He said, “Nigeria’s Cotton, Textile and Garment Industry was a leading sector in the economy from the 1960s through to the 1970s, and in the early 1980s, when the industry had about 175 textile mills and employed over 600,000 workers making it the second largest employer of labour, after the government.

“Unfortunately, however, by 2008, the Textile factories still in operation had reduced to 24 textile mills and 10 ginneries employing less than 25,000 people, and with exports less than $50m.

According to him, among the factors that led to the decline in the sector include but not limited to massive influx of textiles and apparels from Asia particularly after the Multi Fibre Agreement expired in 2005; inadequate and epileptic energy supply and heavy reliance on self-generation of power, leading to high and uncompetitive production costs; global economic challenges; massive smuggling of cheaper textiles of lower quality; changing consumer tastes and habits; and huge debt burden on producers in the value chain amongst others.

He said the subsector held strong potential due to its natural cotton endowments, large market size and legacy sector knowledge.

He explained, “Nigeria’s population of over 167 million people represents a natural market for basic textiles and apparel related goods. Potential to export to regional and select developed markets (such as the United States, under the African Growth and Opportunities Agreement tariff regime) are also very attractive.

“The existing textile infrastructure and skill base provides the industry with a pool of knowledgeable workforce particularly in Northern Nigeria. The above make this sector too important for government to ignore.

Aganga said the evaluation of the socio-economic impact of the Fund to the beneficiaries and the national economy at large could, therefore, not have come at a better time.

“Although, it is evident that the CTG Revival Fund Scheme has provided the industry players with a unique source of incentive-based long-term fund for the financing and refinancing of capital investments and revolving working capital, based on my interactions with some of you and my findings during my visits to your factories, I am not unaware of other challenges being faced by you.”

The Chief Executive Officer of BoI, Ms Evelyn Oputu, said there was the need for a line of credit to be opened for the resuscitation of companies in the textile industry, in view of the fact that it remained a key sector generating a high number of jobs in the country.

She noted that the bank and other agencies were doing a mid-term evaluation of the Cotton, Textile and Garment Scheme in a bid to examine the progress made and other areas of concern.

According to her, BoI has disbursed nearly 60 per cent of the N100bn allotted to the textile sector to revive it, but hopes to increase funding to the sector, if empowered.

The Country Representative, UNIDO, Patrick Kormawa, advocated the need for an improved investment climate, effective policies for the real sector and enhanced capacity building for operators in order to aid the growth of the sector.

He identified the lack of adequate machinery and manpower as challenges the growth of the real sector. He, therefore, called for a renewed effort to revitalise the subsector.

[b]The General Secretary, National Union of Textile, Garment and Tailoring Workers, Isa Aremu, commended the government for the intervention effort in the textile sector, noting that though it came late, it was better as many firms had been revived.

He said, “When the textile industry was still vibrant, a single firm could generate about 10,000 jobs. However, due to the intervention fund, we have been able to revive some firms. There is a need for an accelerated growth in the sector and this can be achieved through increased funding to the sector.

“Presently, 58 companies are managing N10bn, while AMCON has spent about N5.6tn on rescued banks. This gesture can also be replicated in the real sector if the desired growth and employment generation will be achieved.”

He, therefore, urged BoI to increase the tenor rate for loans sought by firms in the real sector in order to aid attractiveness of the loans to the companies and foster development.

“A drop in interest rates for the real sector will foster its growth. I believe we can work towards a zero per cent interest rate if we set our mind towards it”, he added.

On efforts to encourage the subsector’s development, he said, “We are working through the Standards Organisation of Nigeria, to reduce the dumping of sub-standard goods into the country.

“Some of these goods include textiles and apparels. We are also exploring diplomatic channels through our Trade Ambassador at the World Trade Organisation. To ensure increase in power supply, we are working with the Ministry of Power to ensure 10 industrial cities in the country have, at least, 18 hours of uninterrupted power supply by first quarter of next year (2013).

He added, “Our aspiration for the textile and apparel industry is to increase its domestic market share from its present position of 12 per cent to 25 per cent by 2020. We also expect this sector to create over 60,000 direct jobs within this period.

“To achieve this, the strategic thrust requires reviving the entire value chain. This includes strengthening the base by boosting cotton production for use in the domestic sector and potential exports, supporting existing players to expand their current operations and attracting strong brands to set up local manufacturing operation in the country. This explains why we have included the sector in the Industrial Revolution Plan which is being[/b]

Fidelity Bank Plc has expressed its readiness to finance a multi-million naira aluminium can project in Aba.

The bank explained in a statement yesterday that the factory, when completed, is expected to take off with an initial production capacity of 1.2 billion cans yearly.
This, it stressed, would surpass the Agbara Can Manufacturing factory that took off with an initial production capacity of 600 million cans per year.

The bank argued that the new plant, when completed, would be the largest aluminum can factory in Africa.

Managing Director/Chief Executive, Fidelity Bank, Reginald Ihejiahi explained that the financing options adopted by the bank were largely driven by its commitment and faith in the development of the Nigerian economy.

Ihejiahi added: “We are a bank operating in an emerging market and we believe that the industrial sector remains the heart of banking in such markets.”

[b]Ihejiahi, whose bank also financed the Agbara Can Manufacturing factory that was constructed by GZ Industries further explained that as an institution in business, the bank is mandated to report to its shareholders.

He said: “When we opened Agbara Can manufacturing factory constructed by GZ Industries and which was commissioned by President Goodluck Jonathan in 2010, it started with 600 million cans per annum, but the second phase of its development took its production to 900million cans and later to 1.2billion.

“However, the Aba Can manufacturing company which is nearing completion will take off from the first day with 1.2billion production capacity and we believe that with this pace Nigeria will soon be self-sufficient in aluminum can production.”

Ihejiahi said the facility would offer enormous opportunity for job creation and other economic benefits to the citizens of the country.
The Aba Can factory is expected to service the breweries and beverage companies in the South-eastern and South-south parts of the country, and by extension other parts of Nigeria.

“We are also not ruling out export opportunities to West African and other African countries because of the size of the factory,” he said[/b].

taharqa: Not only is it that EVERY SINGLE Index of the Economy has been moving in the Right direction in the past 1 0r 2 years, but this here is one other STATS that is Astonishing in the way it Clarifies of the Direction that the Nigerian Economy is now heading, and what is possible if we continued on this path:

- In a SINGLE YEAR, while Exports increased by almost 16%, Import decreased SHARPLY from about N9.8tn to about N5.6tn (ie by 43%, almost half of its value).
Specifically, the value spent on Textile imports fell from about N190bn to N94bn (ie, by a whooping 82%) within the year; the Import value spent on Vegetable Oil also fell from about N1tn to about N577bn (ie by 42%); just as money spent to import Cement feel from #219bn in 2011 to #27bn in 2012(ie,by an unbelievable 88%) .
The most Exhilarating thing about this STATS is that these SHARP decreases in the value of the money spent on Importation isn't due to an actual decrease in the value of these Goods spent within the Economy within the year (ie Nigerians obviously wore more clothes, used more Vegetable Oil, bought more Cement, etc in 2012 than 2011) Nor was it due to a Depressing Economy (the Economy in fact grew by 6.5% within the 1 year period). This could only mean that the Production of most of these Goods IN-COUNTRY increased and that #4.2trn previously spent in importing these Goods (and even more) was spent/remained WITHIN the Economy ie more Nigerian Companies/Investors have apparently succeeded in producing these Goods in larger numbers than was previously the case, creating Jobs and defining its own 'micro-economy' tru its Chain.
It is not Surprising therefore that Nigeria had by far the largest FDI in Africa in 2011.


- We are also seeing a CLEAR change in the Composition/Quality of the Exports. Whilst, the Exports are increasing, the contribution of % of Crude Oil decreased from 94% in 2005 to 69% in 2012 (with a corresponding increase in the Non-Oil Exports). In fact, if Internal sources of Finance like Taxes, Customs Excise etc are included, the Contribution of Crude Oil to National Finance would further reduce to about 43% or so.

Considering other EXTREMELY important Reforms like those in Power, Agriculation (Rice, Cassava/Wheat, Sugar, etc) and efforts to pass d PIB; and not forgeting the ongoing marked improvement in Critical INFRASTRUCTURE (Rails, Inland Waterways, Roads, Airports, Gas pipelines, etc) across the nation, The Nigerian Economy is Certainly undergoing Significant QUALITATIVE changes within our very eyes.FINALLY.

nameo: good. We are getting there steadily.

PS- why is this thread still low on traffic. and why is not on the Frontpage MODS

Sincere 9gerian: Some say there no good news in Nigeria but why would there be good news if reports such as these are killed behind the scene

ShyM-X:
How come Sincere9gerian/taharqa is the only one talking to himself, by himself, and for himself - on this thread?

Can we get concrete proof(s)/evidence(s) and not the just the ridiculous numbers these people always pull out of their ar.ses?

Nigerians aren't dumb and N4.2trn is a lot of money.. If we're definitely manufacturing, it should have trickled down on the society, by providing employment opportunities...

So, what's unemployment rate in 2011 compared to 2012?

Aganga:
The good and exciting news is that the fall was as a result of a sharp decrease in the value of import from about N9.8tn to about N5.6tn by the end of 2012. That was a decrease of about 43 per cent in savings of more than N4.2tn, which has gone to the increase in the foreign reserves of our country.

nameo: good. We are getting there steadily.

PS- why is this thread still low on traffic. and why is not on the Frontpage MODS

ndu_chucks:

Pathological and bloody liars have started again o!! They continue to use the ignorance of their constituents and praise singers such as many on this thread including Sincere9gerian/taharqa to attempt to make themselves look good.

Given that I don't enjoy writing epistles like one Gbawe or Sam_Ikenna, I'll briefly support my statement that theses people are bloody liars by explaining what constitutes Nigeria's foreign reserves - this should keep the jobbers and other goons from waywardly and willy nilly criticizing my stance.

Nigeria's foreign reserves are made up of three components — the federation, the federal government, and the CBN portions.

The federation component is made up of excess crude and royalty accounts, which are only looted shared (used) as the need arises. It is clear that the sharp decrease in the value of import in Aganga's claims did not increase this component

In the case of federal government component, it is made of up funds belonging to some agencies of government, such as NNPC for its Joint Venture funding. Here again, clearly the sharp decrease in the value of import in Aganga's claims could not have miraculously increased government agency funds. It is insane to make such a claim.

The last component is the CBN portion which is made of up monetized funds. The funds are dollar inflows, which the CBN receives and keeps on behalf of the three tiers of government. The money in the foreign reserve accounts becomes practically CBN's. This it uses in conducting its monetary policy, in defending the value of the naira from time to time. So I ask Alhaji Aganga, how did this sharp decrease in the value of import become miraculously monetized and end up in CBN coffers?

We can see clearly than trhe said decrease in the value of import could not have increased any component of Nigeria's foreign exchange and the CBN portion in particular - since this is the component which most Nigerians associate with foreign reserves.

Alhaji Aganga, please carry your lies elsewhere, go and learn how to lie properly from Ngozi. mumu