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Nigeria’s Economy on the Verge of Total Collapse – Khalipha Muhammadu Sanusi

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The former Emir of Kano, Muhammadu Sanusi II on Friday says, Nigeria’s economy is on the verge of total collapse.

Sanusi, who stated this at the ongoing Kaduna Investment Summit, added that oil, the country’s major source of foreign exchange is about to die.

He stressed that the product is now globally rejected as there is no future in fossil fuel.

The former governor of Central Bank of Nigeria (CBN) expressed concern that the country with the global ranking of 114th is doing badly in comparison to other African countries in the innovation index.

Sanusi said: “Globally, work is being redefined. 30 to 40 percent of workers in developed economies will need to significantly upgrade their skills by 2030. What are the major drivers of this redefinition? A few of such are ICT and remote working which we had seen even here with the COVID-19 pandemic.

“There is increased automation and artificial intelligence. Very soon, robots will take over work in most countries and those who would have hob are those who operate the robots or manufacture the robots or service the robot.

“And you have decarbonisation. For us in Nigeria, the enclave economy that we have, the so-called goose that lays the golden egg is about to die. There will be no eggs. The future is not in the carbons.

“A few months ago, Germany was able to produce enough renewable energy for the entire country’s need. Today, we are having difficulties selling Nigerian oil. So, not only are we having problems producing, even when we produce, the market is not there.

“So, this is forcing a change, and for us a country that depends on oil, things need to change.

“Nigeria is ranked 114th in the global innovation index. We are lower than other African countries such as Kenya, Rwanda and Senegal. We are in fact ranked 14th in sub-Saharan Africa. I think we should have this reality check and know where we are as a country. Let’s stop calling ourselves the giant of Africa because we are the giant with clay feet.

“Countries like Kenya, Rwanda and Senegal are ahead of us. I am not even talking about South Africa. Our expenditure on education is only seven percent of the budget. We are spending less on education than Ghana; I am not talking about as per the percentage of the budget; in absolute terms, even though the Ghanaian economy is much smaller than the Nigerian economy, even though the Ghanaian government revenue is less than Nigerian revenue, Ghana is spending more on education than Nigeria.

“And we are surprised that industries are moving to Ghana. We are surprised that the Ghanaian President has become the leading President in Africa. We are not investing in education and human capital.

“We have a 68 percent missing job requirements and the major areas being IT, communication and decision making. And the completion rate between entry into primary one and completing university is eight percent, meaning that out of every 100 pupils who go into primary school, only eight come out of university. And out of those eight, nine percent, which is one of the eight will get a job.”

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Dangote Cement, MTN paid highest taxes in 2020 – Report

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A report by Next Money has disclosed that Dangote Cement Plc and MTN Nigeria Plc paid the highest corporate income taxes to the Federal Government in 2020.

Dangote Cement paid N97.24bn in CIT to FG making it the highest remitter of taxes for the year while MTN came second with a N93.6bn payout.

Guaranty Trust Holding Company Plc was third with a CIT of N36.66bn.

A statement from Dangote Industries Limited quoted the report as ranking Dangote Cement as the most capitalised in the country at M4.17tn and also the largest corporate employer with 16,199 employees.

The publisher of Next Money, Mr Ray Echebiri, was quoted as saying that the performance index analysis of companies listed on the Nigerian Exchange Limited established the best performers.

According to him, the exercise was done to provide existing and potential investors with reliable information before making investment decisions.

Dangote Cement awards scholarships to 115 students
He was quoted as saying, “The first step we take in the analyses is to extract the total assets of each of the listed companies from their audited accounts.

“We sorted the total assets of the companies from the largest to the smallest and cut off at the 100th. We tagged a hundred companies that emerged from this exercise ‘Nigeria’s Top 100 Companies.”

Echebiri added that any company that made it to the corporate elite club of Nigeria’s Top 100 Companies was automatically a candidate for further ranking by revenues, profits, market capitalization, number of employees and tax payment.

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Tax on carbonated drinks to increase in 2022, says finance minister

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The Minister of Finance, Budget and National Planning, Zainab Ahmed has announced a possible increase in the taxation on carbonated drinks, which would lead to a price increase.

She said this at the Public Presentation and Breakdown of the Highlights of the 2022 Appropriation Bill on Friday in Abuja, stating that it will be part of the additions in the 2021 Finance Act which will take effect from January 2022.

She said, “To further enhance independent revenue generation, government aims to optimise the operational efficiencies and revenue generation focus of the government-owned enterprises.

“The introduction of new and further increases in existing pro-health taxes for example exercise duties on carbonated drinks- this is work in progress but it will happen in the 2021 Finance Act.”

Zainab Ahmed: Nigeria’s featherweight finance minister
In 2019 Ahmed said the government was insistent on implementing the initiative at a World Bank/International Monetary Fund meetings in Washington DC, United States.

Ahmed also noted that there would be penalties for government-owned enterprises that fail to meet the set target in achieving the government’s revenue generation drive.

She said, “Government’s revenue performance and remittances will become enhanced through effective implementation of the performance Management Framework including possible sanctions should there be default on targets that are set for government-owned enterprises.

“The Finance Bill 2021 will contain measures that will further advance the implementation of the Strategic Revenue Growth Initiative (SRGI).

(PUNCH)

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Bitcoin Breaks $50K for First Time in a Month

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Bitcoin, the largest cryptocurrency by market value, broke above the crucial psychological threshold of $50,000 on Tuesday for the first time since Sept. 7.

“It’s too early to say whether this will turn into a new support level in the short term, but it is clear that the overriding market view is bullish,” said Jason Deane, an analyst at Quantum Economics.

At press time, bitcoin was trading about $50,250, up 5.4% over the last 24 hours.

Given the difficult environment across all other asset classes, bitcoin’s long-term holders are the backbone in this rally above the $50,000 level, said Edward Moya, senior analyst at Oanda, in an interview with CoinDesk.

“If momentum buying continues and the price rallies above $52,000, we could confirm the end of this consolidation pattern,” said Moya. (A consolidation pattern is a pause in a stock’s trend that allows the trend to continue further.)

Wall Street is in for a choppy period of dealing with market risks, such as the prospect of the Federal Reserve tapering its $120 billion-a-month of monetary stimulus, an energy crunch and rising bond yields, according to Moya.

This should only help cryptos over the short term,” he said.

“Bitcoin breaking $50,000 is a confirmation of the bull market being back,” said Lucas Outumuro, head of research at IntoTheBlock.

According to the firm, more than 800,000 BTC were previously acquired around $48,000. Sometimes buyers and sellers will target these entry levels for key trading decisions.

“Such high concentration of volume translates into resistance in price action,” Outumuro said. “Now that we’ve surpassed that level, there doesn’t seem to be meaningful resistance up to $56,000.”

The latest surge in bitcoin appeared to lead a broad rally in cryptocurrency prices. The Ethereum blockchain’s native cryptocurrency, ether, was up 3%, while Polygon’s MATIC rose 4.8% and Binance’s BNB coin gained 4%.

CoinDesk.

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