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PwC Charges FG to Focus more on Economic Growth, not Tax

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Chief Economist, PricewaterhouseCoopers (PwC),  Andrew Nevin, says the federal government should focus more on economic growth and not just tax. He disclosed this on Saturday at the Nairametrics economic outlook 2022, themed, ‘Your Money, the Economy and Government Policies’, held virtually.

While highlighting some measures that Nigeria needs to consider to ensure economic growth, he said there should be more on investments to boost revenue generation.

According to him, areas that can shape Nigeria’s economy in 2022 include, harnessing the power of the diaspora, driving export growth through services, and addressing climate-related issues.

“I have never been more optimistic than I am in the past 13 years of being in Africa.

The growth in the country has changed shape in five years. Our GDP growth increases but we are not pushing enough of it into investments. We need to at least invest 28 percent to 29 percent of GDP,” Nevin said.

“Africa can’t be prosperous by just exporting raw materials. Africa needs to have more intra-trade to increase wealth. “I also think Nigeria is on the right direction for initiating digital tax. However, we suggest that the government focus on money economic growth rather than tax, for it is difficult to raise tax when the country isn’t growing. It is also easier for businesses to pay taxes when they are doing well.

“The agricultural sector is a key aspect that needs to be looked into. The issue of insecurity affects food security and the exchange rate is depreciating and that increases inflation. Until we solve the issue of investments, we wouldn’t solve inflation. “We need to attract investments to be able to close the gap.”

Economy

Customs Zone D Seizes Contraband Worth N110m

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The Nigeria Customs Service (NCS), Federal Operation Unit (FOU), Zone D, has seized smuggled goods worth over N110 million between April 20 till date.

The Comptroller of Customs, Abubakar Umar, said this at a news conference on Tuesday in Bauchi.

He listed the seized items to include 11,200 litres of petrol; 192 bales of second hand clothing, 140 cartons of pasta, 125 pairs of jungle boots, 47 bags of foreign parboiled rice and 9.

40 kilogramme of pangolin scales.

Umar said the items were seized through increased patrols, intelligence-led operations, and strengthened inter-agency collaboration.

The comptroller said the pangolin scales would be handed over to the National Environmental Standards and Regulations Enforcement Agency (NESREA) for appropriate action, while the seized petrol would be auctioned, and the proceeds remitted to the federation account.

He attributed the decrease in smuggling activities of wildlife, narcotics, and fuel to the dedication and professionalism displayed by the personnel in line with Sections 226 and 245 of the NCS Act 2023.

The comptroller enjoined traders to remain law abiding, adding the service would scale up sensitisation activities to combat smuggling.

“We remain resolute in securing the borders and contributing to Nigeria’s economic development,” he said.

The FOU Zone D comprises Adamawa; Taraba, Bauchi, Gombe, Borno, Yobe, Plateau, Benue and Nasarawa. (NAN)

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Economy

Trade Tensions: Global Economy Stands at Fragile Turning Point -UN

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The UN Department of Economic and Social Affairs (UN DESA) has said that the global economy stands at a fragile turning point amid escalating trade tensions and growing policy uncertainties.UN DESA, in a report published on Thursday, stated that tariff-driven price pressures were adding to inflation risks, leaving trade-dependent economies particularly vulnerable.

It stated that higher tariffs and shifting trade policies were threatening to disrupt global supply chains, raise production costs, and delay key investment decisions – all of this weakening the prospects for global growth.
The economic slowdown is widespread, affecting both developed and developing economies around the world, according to the report.
For instance, in the United States, growth is projected to slow “significantly”, as higher tariffs and policy uncertainty are expected to weigh on private investment and consumer spending.Several major developing economies, including Brazil and Mexico, are also experiencing downward revisions in their growth forecasts.China’s economy is expected to grow by 4.6 per cent this year, down from 5.0 per cent in 2024. This slowdown reflects a weakening in consumer confidence, disruptions in export-driven manufacturing, and ongoing challenges in the Chinese property sector.By early 2025, inflation had exceeded pre-pandemic averages in two-thirds of countries worldwide, with more than 20 developing economies experiencing double-digit inflation rates.This comes despite global headline inflation easing between 2023 and 2024.Food inflation remained especially high in Africa, and in South and Western Asia, averaging above six per cent. This continues to hit low-income households hardest.Rising trade barriers and climate-related shocks are further driving up inflation, highlighting the urgent need for coordinated policies to stabilise prices and protect the most vulnerable populations.“The tariff shock risks hitting vulnerable developing countries hard,” Li Junhua, UN Under-Secretary-General for Economic and Social Affairs, said in a statement.As central banks try to balance the need to control inflation with efforts to support weakening economies, many governments – particularly in developing countries – have limited fiscal space. This makes it more difficult for them to respond effectively to the economic slowdown.For many developing countries, this challenging economic outlook threatens efforts to create jobs, reduce poverty, and tackle inequality, the report underlines. (NAN)

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Agriculture

NNPC Foundation Reiterates Commitment to Ensuring Food Security 

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The Nigerian National Petroleum Corporation (NNPC) Foundation has renewed its commitment to ensuring food security in the country.

Mrs Emmanuella Arukwe, Managing Director, NNPC Foundation, said this on Wednesday in her remarks during the training of vulnerable farmers in Akwa Ibom.

Arukwe said that 6, 000 farmers across the country would be trained on modern farming methods and market access strategies to boost food production in the country.

Arukwe, who was represented by Dr Bala David, Executive Director, Programme Development and Coordinator, NNPC Foundation, added that the Foundation was dedicated to implementing impactful programmes that aligned with national priorities.

She said that more than 500 farmers in Akwa Ibom were trained by the NNPC Ltd Agricultural Training Initiative for Vulnerable Farmers on modern methods and strategies to boost food production.

Arukwe added that the farmers were drawn from the state’s 31 local government areas to participate in the training to equip them with techniques and market access strategies to add value to their businesses.

“This programme is a testament to our unwavering commitment to food security, economic empowerment and national development.

“As the corporate social responsibility arm of NNPC Ltd, the Foundation is dedicated to implementing impactful programmes that align with national priorities.

“This initiative is part of our broader efforts to support the Federal Government’s agricultural transformation agenda, which seeks to enhance food security, increase productivity, and improve the livelihoods of smallholder farmers.

“Our goal is to equip every participant with the tools, knowledge, and resources needed to transition from subsistence farming to commercial-scale production,” Arukwe said.

In her remarks, Dr Offiong Offor, Commissioner for Agriculture and Rural Development, Akwa Ibom, thanked NNPC for the initiative to equip farmers with knowledge on modern farming.

Offor, represented by Dr Atim Okoko, Permanent Secretary, Ministry of Agriculture and Rural Development, said that a nation that trained farmers was a nation that would not go hungry.

“I want to express the state government’s appreciation to NNPC for mounting this laudable programme.

“A nation that starts to train farmers, a nation that starts to look at farmers will never go hungry.

“In this season that our President Bola Tinubu has come up with his Renewed Hope Agenda, everything is to end hunger in Nigeria,” Offor said.

The commissioner added that the programme came to complement what the state government was doing to ensure food sufficiency.

Responding on behalf of farmers, Mr Bassey Inwang, State Chairman, All Farmers Association of Nigeria (AFAN) said farmers in the state were so grateful for the training.

Inwang said the training would boost food production in the state, as the farmers would apply the knowledge gained on their farms for increase in yields.

He said, “We want to tell you that we will not take this training for granted, we will apply it properly on our farms.” (NAN)

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