NEWS 5
Tuesday, December 30, 2014
Entertainment, Agriculture, Tourism May Rescue Nigeria By Bukola Idowu, Olushola Bello, Chima Akwaja, Lagos and Chika Okeke, Abuja
Despite the forecast that Nigeria will be confronted with economic challenges in 2015, experts have said that agriculture, entertainment, tourism and fashion will cushion the impact of falling oil prices. The experts argue that the listed sectors represent alternative sources of revenue for the Nigerian economy. However, they emphasise that repositioning tourism as a viable alternative to oil would require the enactment of requisite legislation and appointment of professionals to key positions. Also, there is consensus of opinion among technology experts that technology will have more impact on the lifestyle of Nigerians in 2015. According to them, the convergence of mobile phones and computer implies that mobile gadgets are combining several functionalities that one would never have thought possible 20 years ago. Wale Abe, chief executive officer, Financial Market Dealers Association of Nigeria, says Nigeria’s vulnerability to global events will become more evident as economic challenges prevail worldwide, noting that dwindling oil price will be a major challenge for the economy. Putting into consideration the lower capital expenditure in the 2015, Abe said a higher recurrent spending would not see any real developmental spending, with implications for private companies whose products and services are dependent on government spending. He stressed that more focus would be on agriculture and the new contributors to the GDP- entertainment and fashion and core domestic activities. Agric’ll have positive impact on the economy- Adesina The minister of Agriculture and rural development, Dr Akinwumi Adesina has stated that the innovation being put in place in agriculture sector will have positive impact on the economy in 2015 Speaking through his Special Adviser on Media, Dr. Adeleke Oyeleye, Adesina stated the Agricultural Transformation Agenda has impacted every facet of the Agricultural sector in the country. The minister also told LEADERSHIP yesterday that there has been massive growth in seed companies in the country, which ensures quality control. “The massive growth in licensed seed companies in Nigeria is a pointer to the fact that the Agricultural sector holds great promise for the Nigerian economy. This has also seen bank lending to seed companies rise from about N1.895billion in 2012, N4.2billion in 2013 to more than N6billion in 2014,”said Minister of Agriculture, Dr. Akinwunmi Adesina. For her part, head of research at Standard
Chartered Bank, Razia Khan, forecasts that Nigeria’s economic growth will slow in 2015 and that the Gross Domestic Product (GDP) year-on-year growth is expected to drop to 4.7 percent. In her outlook on Nigeria for 2015, Khan said lower oil prices, the challenge of managing a more volatile currency, and an increasingly violent insurgency in the country’s north will weaken Nigeria’s growth in 2015. “Elections in Nigeria are typically accompanied by some economic pumppriming, but with elections due in midFebruary, it is unlikely that spending ahead of the polls will be able to lift growth substantially. Oil price volatility will reduce the resources available for spending,” said Khan. “Oil contributes only 14.4 per cent to the rebased GDP. But it contributes 96 per cent of Nigeria’s foreign exchange earnings and 70 per cent of consolidated government revenue. Longer term, there is much on which to pin hopes of more robust growth.” Khan further noted that increased shale production had contributed to Nigeria’s structural challenges. She said: “In 2008, the US was still Nigeria’s largest export market, buying 45 per cent of Nigerian oil. In 2015, Nigeria is unlikely to sell any oil to the United States which used to be the country’s largest customer, and will instead seek other markets, where it is unlikely to obtain a premium on the light, sweet crude long preferred by east coast refiners.” Khan added that economic adjustment was inevitable in the medium term, and that lower oil prices should accelerate the pace of reform. “Passage of the long-delayed Petroleum Industry Bill is hoped for post-election in order to unlock new investment in Nigeria’s oil sector. However, this will require a political consensus that may be difficult to obtain,” she said. Nigerian capital market will recover in 2015 The Nigerian stock market is likely to end the year on a negative note. The stock market, which has been in recovery mode since 2012, had a reverse of the trend in 2014. The NSE has so far, in 2014, lost 27.92 per cent to sell down by foreign and institutional investors. From a high of about 41,329.19 points in December 31, 2013, the NSE ASI dropped to 29,789.59 points by December 16, 2014. Also, the market capitalisation dropped by N3.39 trillion - from N13.226 to N9.835 during the period. This resulted from factors affecting market growth, starting with the stoppage of the QE by the US Federal Reserve which had resulted in funds outflow from emerging markets due to improvement in US economic indicators, the liquidity tightening by the Central Bank of Nigeria (CBN) and the unceremonious removal of the CBN governor, resulting in uncertainty and withdrawal of funds by foreign portfolio investors.
LIVING LIVING TOTO BE BE 100100
One health tip daily You Snooze, You Loose
Staying active and exercising regularly are the foundations for living a long and healthy life. It’s no surprise that caged animals have more health problems and a shorter life span than free-range animals. Research with
humans confirms that as a rule, the more active you are, the longer you will live. In one study, the group that burned more than 3,500 calories a week lived the longest. Being lazy can actually shorten your life!
Why I Did Not Submit My Certificates To INEC - Buhari By George Agba, Abuja
A former head of state and the presidential candidate of the All Progressives Congress in the 2015 general elections, Maj.-Gen. Muhammadu Buhari (rtd), has explained why he did not submit his certificates and credentials to the Independent National Electoral Commission (INEC), saying that the documents are with the military. This came to light yesterday during a visit by journalists to the headquarters of INEC in Abuja where it was revealed that Buhari’s academic qualifications were not on display, unlike those of other presidential candidates including that of his main rival, President Goodluck Jonathan of the Peoples Democratic Party (PDP). Explaining the development in an affidavit he deposed to before an Abuja High Court, Buhari said that all his certificates were with the Secretary, Military Board. The affidavit was dated Lately, the market downtrend has been attributed to the 2015 election, fall in the price of crude oil and the devaluation of the naira. Capital market stakeholders are of the view that the market in 2015 will be on a positive side, considering that the macro-economic factors affecting the market in 2014 would have been allayed. According to a stockbroker with Calyex Securities Ltd, Mr. Tunde Oyediran, the stock market direction tends to be positive with current fears alloyed. “There is empirical evidence that supports the thesis that the year following the devaluation of a country’s currency, it would experience an upswing in its capital market. The banking sector, which has been battered, will lead the recovery. They often give over 8 per cent dividend yield hence they will attract more patronage in the first quarter,” Oyediran
November 24, 2014 and was stamp e d a n d re ce i v e d by INEC o n December 18, 2014. Buhari had said in the affidavit, “I am the Buhari abovenamed person and deponent to this affidavit therein. All my academic qualifications documents as filled in my presidential form, President APC/001/2015, are currently with the Secretary, Military Board, as of the time of presenting this affidavit. The affidavit is made in good faith and for record purpose. The affidavit is made in good faith and for record purposes.” said. Speaking on market direction in 2015, the chief operating officer, Investdata Ltd, Mr. Ambrose Omodion, said it looked very dicey as factors militating against the market now was likely remain in the new year with the matter of the oil price slide. He noted that, with the lack of positive economic numbers in the heat of political uncertainty - as the general elections draw nearer and the celebrations are around the corner, “the market has continued to give in to sells pressure as many players exit the market to hold cash even at the wrong time.” According to him, “The recent austerity is just a sign of what should be expected in 2015 as the nation’s major export product has lost value in price, which is likely to keep ➔ CONTINUED ON PAGE 8