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Take Advantage Of Our Population And Mineral Resources – Buhari To Spanish Investors

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Nigeria’s President, Muhammadu Buhari on his visit to Madrid the capital of Spain, has told investors in Spain to take advantage of Nigeria’s tax-free environment and limitless expatriate quota at the nation’s Free Trade Zones to boost Nigeria-Spain trade and economic opportunities.

The Nigerian leader gave the charge at a Business Forum jointly organized by the Spanish Chamber of Commerce, the Nigerian Ministry of Trade, and the Confederation of Employers (CEOE) in Madrid, Spain, on Thursday.

According to him, for quite several decades, Spain has been one of Nigeria’s most important trading partners.

The Nigerian leader noted that the country had been a major importer of Nigerian crude oil, emphasizing that Nigeria’s exports to Spain stood at $4.8billion in 2020 whilst Spain’s exports to Nigeria increased from $97.2 million in 1995 to $517million in 2020.

He, however, maintained that a lot more could be done to increase the volume of trade.

According to the president, the business forum presents a good opportunity to explore how this can be achieved despite the current challenging time for the global economy.

He said: ”We are open to widening collaboration with Spain and to encourage private capital inflow, we have put together fiscal investment incentives which include the following:

”Three to five years tax holidays for enterprises in what we deem to be pioneer industries; tax-free operations and no restrictions on expatriate quotas in our Free Trade Zones;

”Capital allowances for agriculture, manufacturing, and engineering amongst others.

”Going into partnerships with trusted local and foreign partners who have well-established networks and understand the dynamics of the economy and country is one of the identified keys to success in Nigeria.

”Today provides a platform for Spanish businesses to connect with credible Nigerian partners.

”I trust that all here present will build relationships that will translate into increased trade and investment flows between Nigeria and Spain.”

Buhari also advocated for increased collaboration between African nations and Europe to mitigate against both current and potential future supply-chain challenges arising from the ongoing Russia-Ukraine war.

”But I have always held the strong conviction that there is no crisis without an accompanying opportunity and solution.

”Increased collaboration with African nations could well be what Europe needs to mitigate against both current and potential future supply-chain challenges and improve both our economic opportunities.

”Historically, the focus has been on Nigeria’s oil sector but Nigeria is home to a wide range of other sectors that hold very great potential.

”We are the largest economy in Africa and our well over 200 million-strong consumer market is home to a range of attractive opportunities in sectors such as agriculture, healthcare, light manufacturing, infrastructure development, and technology,” he said.

According to him, Nigeria has several other notable mineral resources including coal, gold, bitumen, iron ore, and uranium.

”However, our current focus is on adding value to our natural resources before exportation,” he added.

On his administration’s efforts to move beyond the historical dependence on crude oil for government revenue and foreign exchange inflows, the president said it had successfully driven its diversification and put the economy on the path of sustainable and inclusive growth through an open, rules based, and market-oriented way of doing business.

He used the opportunity of the meeting to thank the Spanish government for the donation of 4.4 million doses of the Johnson & Johnson Covid-19 vaccine to Nigeria.

”This is an example of being your brother’s keeper and in that same spirit of brotherhood I would like to assure you of our administration’s continuous commitment and determination to collaborate on issues of collective concern like security, health, and our shared prosperity,” he said.

In her speech, the Spanish Minister of Industry, Trade, and Tourism, Reyes Maroto, said Nigeria had become Spain’s strategic trade partner in the last five years, adding that Spain was Nigeria’s second-largest foreign trade destination.

In his remarks, the Minister of Industry, Trade and Investment, Niyi Adebayo,
Nigeria and Spain had enjoyed a very cordial relationship since the 1960s.

He said: ”I have always felt there are many similarities between the peoples of both countries; we are equally warm and passionate; we love past-times like football and dancing and even your national dish of paella has a lot of similarities with Nigeria’s national dish of jollof rice.”

According to him, the Nigerian government will be ready to support businesses that are willing to enter the Nigerian market to invest, saying the country is fertile for investments in various sectors, including security, infrastructure, tech, and science.

“Nigeria is also home to a multitude of investment opportunities in, but not limited to, the following sectors: security, infrastructure, the green economy, and technology.

”Nigeria is at the beginning of a tech boom with growing interest in our fin-tech and ag-tech spaces.

“This is an area I can see a lot of scope for collaboration with Spanish firms.

”Agriculture and food production are other big areas and I am glad that a major Spanish company is already very active in Nigeria in this space.

“Nigeria is open for business and the Federal Government is ready to partner with and support Spanish businesses wishing to enter our market.

”We have begun exploratory talks with the European Union on an Investment Facilitation Agreement, and we are open to direct agreements and partnerships with Spain.

The Nigerian Ambassador to Spain, Ademola Seriki, who also spoke at the event, expressed the hope that both countries would be exploring business opportunities in multiple areas, as a result of the engagement provided by the forum.

The business meeting attracted participants from both Nigerian and Spanish business and political circles.

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Inflation: Real Reason Indomie Reduced Prices Of Popular Staple Food Item Revealed

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In the face of mounting inflationary pressures in Nigeria, Indomie Instant Noodles, a major brand under Dufil Prima Foods Limited, has announced a substantial price cut to ensure affordability for consumers.

The move was made to preserve availability to this well-liked essential food item in response to the growing economic difficulties that Nigerians were facing.

And this is supported by a recent survey that was carried out at a number of Lagos-based stores and found that the costs of Indomie goods had significantly dropped. When compared to the previous month, the price of the 70g pack of Indomie Regular Chicken noodles dropped to N250.

Additionally, the price of a 40-pack carton of Indomie dropped from N12,000 to N10,000 within the same timeframe. Prior to this adjustment, Indomie’s prices had surpassed those of competing brands such as Mimee (N200) and Honeywell noodles (N250).

Temitope Ashiwaju, the group corporate communications & event manager at Dufil Prima Foods Limited, attributed the price reduction to favourable changes in operational costs.

He emphasized the company’s commitment to passing on benefits to consumers, stressing their dedication to fairness and affordability.

“We are never going to be taking advantage of the populace. We want to make profit, but in a fair way,” the spokesman added. “That is why we are determined to keep our products affordable to Nigerians.”

Contrary to speculations suggesting low patronage as the driving factor behind the price adjustment, Ashiwaju reaffirmed that the decision was rooted in the company’s ethos of customer-centricity and fairness.

Industry experts have hailed Dufil Prima’s move as influential, predicting a ripple effect that could prompt other brands to follow suit because Indomie’s dominant position in the market has positioned it as a price setter, prompting expectations for broader shifts in pricing strategies across the industry.

The price reduction by Indomie comes amidst a backdrop of economic challenges in Nigeria, characterized by soaring inflation rates.

Over the past nine months, Nigeria has witnessed a steady rise in headline inflation, driven primarily by government reforms such as the removal of petrol subsidy and naira devaluation.

As a result, food inflation has surged, exacerbating the financial strain on households and leading to an increase in poverty levels.

Despite these economic headwinds, a recent report by Euromonitor International indicates robust growth in the sales value of noodles within Nigeria’s formal market.

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Lagos State Government Disburses N4.48bn In Pension Benefits To Retirees

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  • Governor Sanwo-Olu Upholds Commitment to Pensioners’ Welfare with Timely pay

 

The Lagos state government on Thursday, March 28, paid a total of N4.48 billion in pensions to 1,455 retirees for the month of March.

The payment was given at the Lagos State Pension Commission’s (LASPEC) 104th retirement bonds certificate presentation.

When LASPEC paid N3.2 billion in accrued pensions to 1,013 retirees during the 103rd retirement bonds certificate ceremony in February, the state governor, Babajide Sanwo-Olu, had promised to pay at least N4 billion in March.

To settle all pending accrued pensions by the middle of the year, the governor guaranteed that the state government would pay an additional N3 billion in April.

While he acknowledged the backlog in the payment of accrued rights, Sanwo-Olu noted: “Our attention is focused on systematically eliminating the backlog.”

He also expressed optimism about the actualisation of the government’s dream of a “Pay-As-You-Go” model before his term ended.

At the presentation, LASPEC Director-General, Babalola Obilana, said that the monies were released for civil personnel who retired before the start of the Contributory Pension Scheme in 2007.

Obilana expressed gratitude to Sanwo-Olu for his steadfast dedication to the well-being of the state’s residents.

The governor, he pointed out, had consistently placed pensioners’ interests first and supported measures to lessen their financial difficulties.

He assured that by mid-2024, retirees from the state would receive their benefits as they departed from government employment, emphasising that the governor had kept his word to clear all pension arrears.

Obilana said: “On behalf of Gov. Sanwo-Olu and the entire Lagos State Government, I extend my heartfelt gratitude to all of you present at this memorable event.

“Lagos State is thankful for your accomplishments and the enduring contributions you have made throughout your distinguished careers.

“You have exemplified the values that define Lagos State – integrity, commitment, and excellence.

“Your dedication and hard work have contributed to the dream of a `Greater Lagos’.

You are a source of inspiration for us all. Your legacy will undoubtedly continue to resonate within the public service.”

LASPEC DG further urged retirees to be cautious of fraudsters and choose suitable pension investments. He highlighted the transition from professional life to leisure and hoped their future would be full of happiness and fulfillment from a rewarding professional life.

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Federal Government To Grant Mining Licenses To Only Companies That Process Locally

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Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, under new guidelines being developed, a government spokesperson confirmed on Thursday.

This is a departure from Nigeria’s long-standing practice of exporting raw commodities, as governments around Africa work to increase the value derived from their substantial mineral reserves.

To spur investment, Nigeria will offer investors incentives including tax waivers for importing mining equipment, make it easier to secure electricity generation licences, allow full repatriation of profits and boost security, Segun Tomori, a spokesperson for Nigeria’s minister of solid minerals development said.

“In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” Tomori said. He did not say when the guidelines would be finalised or come into effect.

However, last week the minister of solid minerals development, Dele Alake, said it was now government policy to make value addition a condition for obtaining licences so as to create jobs and help local communities.

Alake, who also chairs an African mining strategy group comprising mining ministers from Uganda, Democratic Republic of Congo, Sierra Leone, Somalia, South Sudan, Botswana, Zambia and Namibia, is pushing for a continent-wide effort to get maximum local benefit from mineral exploration.

Nigeria, Africa’s top energy producer, has struggled to extract value from its vast mineral resources due to poor incentives and neglect. The underdeveloped mining sector contributes less than 1% of the country’s gross domestic product.

Last year Nigeria exported mostly tin ore and concentrates worth about 137.59 billion naira ($108.34 million), mainly to China and Malaysia, according to the country’s statistics bureau.

The government aims to drive more investment into the sector by issuing more licenses. It has set up a state-owned solid minerals corporation offering investors a 75% stake and established a special security unit tasked with fighting illegal miners.

The government is also trying to regulate artisanal miners, who dominate the sector, by grouping them into cooperatives.

Foreign mining companies operating in Nigeria include Canada-based Thor Explorations which is involved in gold exploration, Chinese-owned Xiang Hui International Mining which partnered with a local company to process gold, and Indian-owned African Natural Resources and Mines, which is building a $600m iron ore processing plant in northern Nigeria.

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