Business

Global economic downturn: Dangote urges government to protect local industries.

Published

2 days ago

July 2, 2024

Global economic downturn: Dangote urges government to protect local industries.

President of the Dangote Group, Aliko Dangote, has advocated for policies that safeguard domestic industries and cultivate them into indigenous champions capable of generating jobs and fostering prosperity in the face of current global economic woes.

The foremost entrepreneur told the gathering of manufacturers and investors in Abuja while delivering a speech on ‘Rethinking Manufacturing in Nigeria’ as the keynote speaker at the Nigeria Manufacturers’ Summit that Nigeria has what it takes to be prosperous.

Dangote who noted that through there are various factors contributing to the underperformance of the manufacturing sector, emphasized that the crucial issue requiring attention is government policy and its approach toward investments and investors.

He pointed out that industrial or manufacturing entities are not like trading entities while expressing his belief that the fundamental role and responsibility of government should be not only to promote investments and attract investors in manufacturing but also to ensure that these investments are nurtured and protected to facilitate growth and sustainability.

“In every economic regime, including the most advanced, investment projects in manufacturing and industrial sectors need time and a conducive environment for them to mature, build capacity and scale, to become competitive against those in older and more mature markets.

“But since the Mid 1980’s non-industrialized countries and their leaders have been discouraged from protecting and supporting such investment and forced to expose them to unfair competition from stronger, older competitors in their own internal market, even before the newcomers are commissioned. Yet these same older/bigger players are well supported in their home markets,” he said.

He listed several examples of government intervention to protect industries: the blocked sale of US steel to Nippon Steel of Japan, the blocked sale of six US port management companies to Dubai Ports World, restrictions on Chinese cranes at US ports, and the US imposition of tariffs such as 100% on Chinese EVs, 50% on semiconductors, medical products, and solar panels. He also cited the restriction of Russian gas supply to Europe, which led European countries to increase coal usage despite opposition to fossil fuels, and the US government’s distribution of $39 billion in subsidies to incentivize local microchip production.

Dangote referred to Asia as having achieved significant levels of industrialization by pursuing industrial policies where the government played an active role in nurturing and supporting local companies. They subsequently leveraged this success to attract foreign direct investment (FDI) into Free Trade Zones.

He emphasized that Government Protection of the industry, does not solely encompass short to medium-term Regulatory Mechanisms such as tax holidays and other incentives which have their place in industrial policy and should be applied when necessary to mitigate investment challenges.

“I am concerned with a long term policy framework which ensures that investors can invest with the understanding that the industry will in the long run be regarded as a national asset and not just investor’s assets, so that when it is threatened, either by external forces or by changes in the environment beyond the control of individual operators, Government will take appropriate action to protect investors and support them to survive the threat. Almost all countries did this in response to the COVID threat. Those in the pharmaceutical industry may well remember how India protected and supported its pharmaceutical industry,” he said while noting that if such policy had been adopted in the past, Nigeria would boost a flourishing textile and tyre industry as well as functioning refineries.

“If we had adopted such a policy and Government attitude to the Textile Industry and tyre industry in the 80’s and early 90’s, perhaps our economy today will still be benefitting from the job creation capacities of these industries. Or if we had adopted this attitude to our Refining industry, Nigerians would not today be too anxious about Dangote Refinery,” he stated.

Disputing assertions that protecting domestic industries leads to reduced competitiveness, Dangote argued to the contrary, citing examples such as China, Korea, India, and various other Asian nations. He pointed out that these countries successfully developed into robust economies and posed a challenge to the established global economic order precisely because they protected their industries.

He noted that in the past, Nigeria was not competitive in cement production, producing less than 2 million tons of cement per annum up to 2007. He pointed out that due to strategic government policies and support, Nigeria has since become Africa’s largest cement producer and exporter, ranking among the top 10 globally in competitiveness.

Dangote noted that in 2023, Dangote Cement alone contributed more tax revenue to the government than the entire banking sector. “In the past, Nigeria was not competitive in cement production. Up to 2007, Nigeria produced less than 2m tons of cement per annum. Today we have about 60m tons of production capacity and another 9m under construction. The foundation for this success story was laid by an administration which decided to extend full support and protection to Nigeria’s cement industry. Today we are among the 10 most competitive cement producers in the world and the biggest cement producer and cement exporter in Africa. In 2023, Dangote Cement alone paid more taxes into the coffers of the government than the entire banking industry,” he said.

Dangote also refuted claims that protecting industries would lead to monopoly, stating that it is common knowledge that foreign investors only come when they see that local investors are also doing well.

“I am convinced that when Government Policy becomes more supportive and protective, investors will be more willing to collaborate and partner with the Government in resolving other challenges such as infrastructure deficits, market instabilities and macro-economic issues such as inflation and foreign exchange volatilities,” he added.

Reiterating that Nigeria has all it takes to develop and sustain a globally competitive manufacturing sector, Dangote called for re-thinking of her industrialization policy, by learning from leading countries in the West and the East who are actively protecting their domestic industries.

Business

Land Grabbing Allegation: Owoeye Replies House of Assembly, Salutes Lands Committee on move to broker peace in Ogun

Published

1 hour ago

July 4, 2024

Sahara Weekly

Land Grabbing Allegation: Owoeye Replies House of Assembly, Salutes Lands Committee on move to broker peace in Ogun

………..Owoeye said the family that sold the properties to him has written petitions to Ogun State House of Assembly, Police, DSS, Attorney General on several occasions to validate his proof of ownership on the lands but no reactions

……Says he is an investor, the family that sold the land to him should be dragged and not him

…..Clears the air on the allegations of land Grabbing, said he is a legitimate real estate owner and not a grabber.

The Popular Real Estate mogul, Alhaji Mutairu Owoeye has replied the allegations of land Grabbing as addressed by the Ogun state House of Assembly in a publication released today 4th of July 2024.

According to the publication, Alhaji Mutairu Owoeye was invited by the House of Assembly alongside Ademola Owoeye, Garba Owoeye, Sina Oladunjoye and Taoheed Bayo, Secretary Lasabi Family in connection with an alleged case of forcible occupation of landed properties of some communities within twelve (12) Community Development Associations (CDAs) at Obada-Oko, in Ewekoro Local Government Area of the State.

Alhaji Mutairu Owoeye, while commending the Chairman of House Committees on Lands and Housing as well as Justice, Ethics and Public Petitions, Hon. Damilola Soneye for his actions to broker peace to land dispute in Ogun state, he also charged him to follow due process when inviting people as a learned legislator.

He said the family who sold the land to him has written petitions to the Ogun State house of assembly earlier before now on several occasions,also to the Nigeria Police Force, department of state security DSS, Attorney General of Ogun State, and all other institutions that deals with land disputes with documents to proof their ownership as the original owner of the said lands but the now complaints show cause of their ownership.while the assembly members doesn’t work on the petitions.

“I am very surprised when I read the publication released by Ogun State House of Assembly today sending invitation to me through the media, I expected the Chairman of House of Assembly Committee on Lands and Housing as well as Justice, Ethics and Public Petitions to address invitation appropriately instead of the public threat and calling of names as land grabber” Owoeye said.

“As an experienced real estate business man and law abiding citizen of Nigeria, I ensure I purchase properties with valid documents to avoid any problems, general public should disregard the calling of names, it is one of the hazard of our business.” He added.

He said the invitation period is too short for him due to the fact that he is having a scheduled business trip abroad, promised to honour the committee by appearing before the House of Assembly on the 11th of July, 2024.

Business

FIRS urges states to prepare for tax reforms

Published

11 hours ago

July 4, 2024

Sahara Weekly

FIRS urges states to prepare for tax reforms

The Federal Inland Revenue Service (FIRS) Chairman, Dr. Zacch Adedeji, has urged state governments to brace up for the tax reforms about to be released.

Adedeji emphasised the importance of a robust Internal Generated Revenue (IGR) system at 155th Meeting of the Joint Tax Board (JTB) in Suleja, Niger State. He enjoined the state governments on the need to optimise revenue collection “for socioeconomic and human development.”

According to him, “at this critical point in time, it is necessary to strengthen the fabric of our IGR capacity to ensure that the revenue administration processes, especially at the subnational level, become as efficient as possible to optimise the collection of IGR for socioeconomic and human development,” Dr. Adedeji stated.

Adedeji acknowledged the ongoing tax reform efforts led by the Presidential Fiscal Policy and Tax Reforms Committee, stressing that “we must begin to look ahead to how these reforms will impact revenue authorities across all government levels”.

Tax Reforms panel proposes 1% ‘Cost of collection’ for Customs, FIRS, NPA, others
He expressed confidence that diligent implementation of innovative approaches could lead to a monthly IGR target of N5 billion for Niger state.

Governor Mohammed Umar Bago of Niger State, represented by Mustapha Ndajiwo, the Commissioner for Budget and National Planning, presented a case study of successful IGR improvement in the state.

Ndajiwo revealed a rise in Niger State’s IGR, with an average monthly collection of N2,621,710,688.94 between January and May 2024, compared to N1,806,280,088.25 in the same period last year. May 2024 alone saw a collection of N3,508,389,805.20, representing a 45 per cent increase.

Ndajiwo attributed this growth to three key strategies: Niger State implemented strategic reforms and innovative approaches to tax collection. The state prioritized transparency, efficiency, and taxpayer education and Niger State actively collaborates with the Joint Tax Board, a forum for tax authorities across all government tiers. This collaboration allows for the exchange of ideas, best practices, and solutions to shared challenges in tax administration and revenue optimisation.

Business

Court orders popular cleric Daddy Hezekiah to pay bank manager N10m for human rights abuse

Published

1 day ago

July 3, 2024

Sahara Weekly

Court orders popular cleric Daddy Hezekiah to pay bank manager N10m for human rights abuse

A Federal High Court in Abuja has ordered popular Anambra cleric and founder of Living Christ Mission, Rev. Onokogu Hezekiah (also known as Daddy Hezekiah), to pay N10 million to Polaris Bank manager, Hezekiah Duru, for violating his fundamental human rights.

The cleric had filed a petition against Duru, accusing him of financial misappropriation and breach of trust, which led to Duru’s arrest and detention by the police.

However, Justice D. Okorowo ruled against Daddy Hezekiah and the Nigeria Police Force, stating that the arrest and detention of Duru was a violation of his fundamental human rights, especially since the allegation was already under investigation by the Economic and Financial Crimes Commission (EFCC).

In the suit: FHC/ABJ/CS/3/2024, Justice D. Okorowo also faulted the warrant order obtained from the Nasarawa State Magistrate Court.

The Court judgment by Justice Okorowo in favour of the Applicant, Duru, reads:

“A declaration is made that the arrest, detention and purported investigation of the Applicant from the 11th day of December 2023 till 29th day of December 2023 by the Respondents on the petition of the 1st Respondent on an allegation of financial misappropriation/embezzlement/cheating/breach of trust already being investigated is an infringement of the Applicant’s right to personal liberty, fair hearing, right to dignity of his person as enshrined in the Constitution of Nigeria 1999 and African Charter on Human and Peoples’ Rights.

“A declaration is made that the order/warrant for the detention of the Applicant obtained by the Respondents from the Nasarawa State Magistrate Courts is unlawful, an abuse of powers, an abuse of judicial process and an infringement of the Applicant’s right to fair hearing, and personal liberty.

“An Order is made directing the release of the Applicant, Amb. Dr Hezekiah Chinenye Duru forthwith from Police custody.

“An Order of injunction is made restraining the Nigerian police and its officers from arresting, detaining or further violating or doing anything capable of undermining, threatening or interfering with the fundamental rights of the Applicant, His Excellency Amb. Dr. Hezekiah Chinenye Duru.

“An award of 10 Million Naira damages jointly and severally against Rev Onukogu and the Nigerian police, the Inspector General of the Nigerian Police and ACP Asuqou (the officer in Charge of the Special Investigation Unit of the IGP office).” (The Nation: Text, Excluding Headline)