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Adeosun: Made in Nigeria must be promoted and prioritised across all sectors of Nigeria.

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9 years ago

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…..says Economy will Pick Up

Minister of Finance, Mrs Kemi Adeosun on Thursday said the Federal Government has disbursed a sum of N247.98billon as capital release so far this year. The Minister, who made the disclosure in her presentation to the Senate, explained that the disbursements were being made in line with strategic priorities to address infrastructure deficit and drive domestic growth.

The latest figure of N247.98bn, she noted, compares to a sum of N387bn capital spend for full year 2015.She stated that

  • N 21.6bn released for agriculture in 2016 is 4.9x of N4.5bn spent in 2015.
  • N118.0bn released so far to the power, works and housing in 2016 is4.0x amount spent for full year 2015 which was N29.3bn.
  • N24.0bn was disbursed to Transport ministry so far and that this is 3.6x of N6.5bn spent for full year 2015.
  • N9.5bn released in 2016 to Interior Ministry is 6.2xamountspent for full year 2015, which was N1.5bn.
  • N32.7bn for Defence Ministry has been disbursed in 2016 and this is 1.3x ofN26.1bn total release for 2015.

Adeosun, who noted that debt owed to contractors has slowed the pace of implementation, however explained that contractors and cash call arrears totalling N5bn Joint venture funding arrears are being addressed. The Minister stated that in order to achieve the objectives of capital spending, the Ministry of Industry, Trade & Investment is also working on government’s soft infrastructure (N465.12m in capital spend released to date). She listed one of the objectives to include improvement in Ease of Doing Business ranking to 100thposition from current position of 169th.

The Minister said the current stability in oil price has raised hope for Nigeria, noting that Oil prices are up 75% per barrel since hitting a 12-year low of around$27barrel.

Adeosun, who stated that oil production volumes are expected to rebound in the near term, explained that ongoing fiscal reforms are bearing fruit.

She disclosed that for instance, the Federal Government is making a N8bn savings on payroll to date, while a N14bn in estimated savings on overhead is expected by yearend.

“While production volumes have increased, the damage to oil facilities are concentrated on onshore oil fields from which we get our greatest volumes and revenues. The gap in production volume is being plugged by production in off-shore fields (Production Sharing Contracts) from which we incur higher costs. This therefore, minimises the effect of increasing production in revenue terms,” the Minister stated.

She stressed that Investment in critical infrastructure is key to unlocking economic growth, while Cost reductions being achieved through fiscal reforms create head room for capital investment.

 

The Federal Government, she said is effectively managing debt overhang; forming strategic alliances with private sector to implement key projects with limited budgetary provision; restructuring of outstanding PPPs to address legacy issues and initiate New PPPs to ensure efficient delivery of infrastructure and value for money efficiency gains.

The Minister explained that current FAAC disbursements are low due to the three-month lag in sharing of oil revenues. “Crude oil proceeds in April are being shared in June and therefore, do not reflect recent increases in production volumes,” she stated.   “Our revenues are looking well; FIRS and Customs are doing well in terms of this” Mrs Adeosun also stated.

She stated that “Our spending is being targeted to stimulate the economy and achieve positive GDP Growth. There is a trade-off between growth and inflation. The objective is to target growth while keeping a close eye on inflation.” We will invest in key infrastructural upgrades to stimulate the economy.

In answering questions about ensuring that the agencies under the Ministry of Finance are properly scrutinized. The Minister acknowledged that work is on-going to ensure improved efficiency and fiscal discipline.

When asked about the state’s inability to pay staff salaries, the Minister stated that “Previous administration has been borrowing to pay salaries and the previous administrations have been playing a photo trick on Nigerians.  This administration will state the fact as they are a be honest with Nigerians so that we can work collectively to fix all the problems rather than pretend there are no problems.”

In answering other questions raised, the Minister confirmed that Nigerian Customs will be reformed under this administration and steps are already in place to do so.

We also learned that a multi-agency committee to review of waivers, a new policy on waivers will be published shortly.  Loop-holes and leakages will be closed and a clear strategic approach will be applied to import waivers.  This policy will ensure that any waiver will be tied directly to economic growth and diversification.

She also stated that “The reality is that Nigeria most start to save, we cannot continue to spend all our earnings.  We must start to save. It is our collective responsibility.”

The Senate president confirmed that the Senate is in the final stages of revision of the procurement laws to assist in expediency in the procurement processes..

The Minister attributed the current increase in prices of Agricultural products in Nigerian markets to payment delay to fertiliser producers in the past. This,. She noted, led to crop failures and subsequently a lower output of basic products for the markets.  Naturally prices increased due to these shortages.   The minister also said that plans are on the way for the poverty alleviation programmes most of which will be channelled through Agriculture.

These back due payments for the last two years have been cleared and we can expect a bumper harvest.  What we must guard against is over supply and we will work with the farmers in this regard.

The Minister stated that, “Money has been pushed out in corn, rice and millet.” “We have widened the definition of Internally Generated Revenue of all states”. This will encourage each state to look inward and increase production especially in Agriculture.

“We are working on the recapitalisation of the Bank of Agriculture and we will come up with a plan in the next 30 days”. “All agricultural machinery is allowed to be imported with Zero import duty”

Responding to the issue of the size of the nation’s economy, the Minister stated that “Nigerians should not panic.  We are still the biggest economy in Africa and we will still get better.

“When you have two consecutive quarters of negative growth, you are technically in a recession, but that notwithstanding, our focus should be on the progress we are making. ”

Expenditure focus is on infrastructure, We are tackling infrastructure deficits.  Our focus towards economic diversification is to bridge the infrastructural gaps.”

The Minister stressed the need to promote patronage for made in Nigeria products, saying Made in Nigeria must be promoted and prioritised across all sectors of Nigeria.

When asked about implementation of budgeted constituency projects, the Minister stated that “Everything in the Budget needs to be implemented or else there is no sense in passing the budget.”

In all, most of the Senators acknowledged and appreciated for the work done thus far by the minister and her ministry on the reforms, initiatives and approach being applied, especially on fiscal discipline, blocking leakages and especially the initiative on Savings.

 

 

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

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1 week ago

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November 28, 2025

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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%.

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Lagos govt promises MSMEs continued visibility, market access

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3 weeks ago

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November 16, 2025

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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

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

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3 weeks ago

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November 12, 2025

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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.”

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