Business

Nigeria plan to generate 1,000 MW of electricity from coal by 2020 — Fayemi

Published

10 years ago

March 21, 2016

Nigeria is expected to generate 1000 mega watts of electricity from coal by year 2020 to supplement other sources of energy currently in use in the country. Dr. Kayode Fayemi, Minister of Solid Minerals Development, disclosed this at an Economic Summit organised by the New Telegraph newspapers with the theme, “Nigeria: Beyond the Oil Economy”, in Lagos last week. Also, the diversification of the nation’s economy has been yielding positive results, with the country earning about N400 billion from solid minerals in 2015, according to the Central Bank of Nigeria (CBN). Fayemi: I am ready to defend my actions Fayemi: Nigeria eyeing 1,000 MW of electricity from coal by 2020 Fayemi noted that a significant opportunity exists for power generation from coal exploration in the country. He said the Ministry of Solid Minerals Development is collaborating Ministry of Power, Works and Housing to ensure that huge coal deposit in the country is explored to meet some of its energy needs. “Coal production started in Nigeria in 1902 and it was the main energy source for our country until 1960, and coal is in about 19 states of the federation stretching for about 800 kilometres. Coal exploration offers a significant opportunity for power generation and one of the efforts that we are making now in partnership with the Ministry of Power, Works and Housing is ensuring that coal forms a significant part of the energy needs. I know there are people who are worried about climate change and the implication of coal on that. But even coal can achieve clean coal environmental standard and we believe that about 1000 mega watts of electricity can be generated from coal by the year 2020. And these are plants that are going to be sited near the areas where the reserves are, across the country.” Mining reforms Speaking on “Digging Deeper for New Wealth: Opportunities from Solid Mineral Resources”, Fayemi remarked that some reforms arising from Nigerian Mining and Minerals Act 2007 have created a platform for a robust private-sector-led mining industry in the country. “The mining sector has been with us since 1902. From the early operations of the geological surveys emerged entities such as the Nigerian Mining Corporation, Nigeria Coal Corporation and the National Steel Company. And during this period, mining was a major contributor to Nigeria’s revenue base and was a leading employer of skilled and unskilled labour. But we then lost it, we forgot all about mining, and the Indigenisation Decree, particularly in 1972, contributed to the demise of mining in the country. Because that’s when most of the expertise that we had in mining, which was essentially foreign, mostly British, left the scene, and we lost our tracks as far as mining was concerned. But following some reforms which started in 1999, which essentially crystallised around the Nigerian Mining and Minerals Act 2007, Nigeria is once again on the path to providing a transparent and workable regulatory and policy environment for more robust private-sector led mining.” Banks don’t understand mining The minister however noted that one of the major challenges confronting the mining sector is finance, asserting that the banking industry does not understand mining. “Less than one percent of the loan that is on offer in the banking sector goes to mining. In fact, our banking industry does not understand mining at all. Apart from the Bank of Industry (BoI) that has now started some work in this regard, only 2 banks in this country have mining desks – Stanbic IBTC and First City Monument Bank (FCMB). On becoming minister, I had to go the Bankers Committee to talk to all bank MDs, courtesy of the CBN governor, to encourage them to set up mining desks in their banks and also get involved in similar interventions schemes which exist in agricultural sector but does exist in mining yet, it will come. We are determined to have funding structures that can support genuine mining, and over the course of the next 6 months a lot more will be heard of what we are doing in this sector. But banks are also showing interests because they see that it is a priority area for the government,” he stated. Great prospects for non-oil economy Meanwhile, the CBN Governor, Godwin Emefiele, also declared at the event that the N400 billion earned from solid minerals in 2015 underscores the great prospects of the nation’s non-oil economy. In his keynote address on “Returning Nigeria to the Boom Days: Prospect of a Non-Oil Economy”, Emefiele who was represented by CBN’s Deputy Governor, Economic Policy, Dr. Sarah Alade, noted that although the challenge of diversification of the Nigerian economy is daunting, it is by no means insurmountable. “The prospects are great with the potentials in the agricultural, solid minerals and the creative industry sectors. The country is endowed with abundant arable land capable of supporting all- year-round production of a wide variety of both cash and food crops, livestock and forestry. By its geographical location along the coast of the Atlantic Ocean, and myriads of water-ways, it has huge potentials for fish production to meet domestic need and surplus for exports in a global fish market valued at $144 billion in 2014. In the solid minerals sub-sector, there are at least 44 known mineral assets notably gold, iron ore, barite, bitumen lead, zinc, tin and coal which have been identified for commercial exploration. Solid minerals contributed an estimated N400 billion to the economy in 2015. “Nigeria’s creative industry driven by Nollywood, produces about 50 movies per week, second only to India’s Bollywood and ahead of Hollywood, and currently provides employment for over one million people (excluding pirates). This makes it Nigeria’s largest employer after agriculture. In 2013, the creative industry contributed 1.4 per cent to GDP and was rated the third most valuable film industry in the world, generating revenue of N1.72 trillion. The Nigerian film industry has a global audience of several millions in over 178 countries. In recognition of the industry as a leading non-oil sector in Nigeria, the World Bank in 2010 provided a grant of $20 million to boost growth and employment under its Growth and Employment in States (GEMS) project. From the foregoing, it is evident that we are not short in potentials to transform the economy through the non-oil sector.

The task of returning the non-oil economy to its glory days is possible but would require the creative energies of all stakeholders; government at all levels, the private sector, press and indeed, the citizenry. It is noteworthy that, government, particularly at the centre recognises the need to and has committed to diversifying the economy away from oil. “The banking sector is the “lifewire” of economic activity in any economy. The sector mobilises resources from the surplus and lends to the deficit segment and thereby, efficiently channeling savings into investment.

This helps to mobilise and pool savings from a large number of investors to achieve growth. An efficient banking system also eases the exchange of goods and services by providing efficient payment and settlement services. Thus, it influences savings rates, investment decisions, technological innovation, and consequently, enhance long-run growth. “The banking system is the major instrument of government’s monetary strategy from which all the other organs in the economy take their financing tone.

In recognition of the above, the CBN as the apex regulator in the financial system has remained focused on creating and sustaining a stable macroeconomic environment and building a vibrant, safe and sound banking system that is capable of supporting the diversification drive of the economy,” he stated. Emefiele reiterated CBN’s commitment to its developmental mandate with intervention programmes across various sectors but with strong focus on the real sector. “The key objectives of the interventions include: providing enabling policy environment for increased lending to priority sectors; improving access to affordable and long term funds to fast-track real sector development; de-risking lending to encourage financial institutions to finance priority sectors; incentivising borrowers to encourage timely repayment; enhancing job creation and promoting the diversification of the economic base.”

Business

FG earned N2.78trn from Company Income Tax in second quarter 2025—NBS

Published

1 week ago

November 28, 2025

Business News Report

National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.

The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.

The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.

According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.

This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.

Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.

On the flip side, some sectors experienced sharp declines in company income tax remittances.

Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.

The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.

In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.

Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.

Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.

At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.

Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.

Business

Lagos govt promises MSMEs continued visibility, market access

Published

3 weeks ago

November 16, 2025

Business News Report

Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”

Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.

“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.

The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.

This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN

Business

Jumia posts $17.7m pre-tax loss in Q3, down 1% in 12 Months

Published

3 weeks ago

November 12, 2025

Business News Report

Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.

Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.

Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.

Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.

In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.

“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”