Business Morning: Assessing Nigeria’s Q2, 2021 GDP And Revenue Sharing Formula | 27/08/2021

Business Morning: Assessing Nigeria’s Q2, 2021 GDP And Revenue Sharing Formula | 27/08/2021

it’s the last edition for the week good morning and welcome to business morning i’m ini john mcquaid thank you for joining us uh oil prices are rose friday back at supposed big games of the week and worries about our near-term supply disruptions as 30 companies began shutting in production for mexico and the u.s west texas intermediate crude features climbed 516 cents to 67.58 cents a barrel while brains crude features similarly rose 16 cents to 71.23 cents a barrel and that’s after falling 1.6 on thursday companies have started airlifting workers from gulf of mexico oil production platforms and php as well as bp saying that they’ve begun to stop production at offshore platforms as a storm was brewing in the caribbean sea forecast to barrow through the gulf on the weekend gulf of mexico offshore wells accounts for 17 percent of the united states crude oil production and 5 of dry natural gas production over 45 percent of total u.s refining capacity lies along the gulf coast the prospect of u.s gulf supply outages helped turn the market around from losses yesterday which had been partially spurred by output returning as a mexican oil platform following a fatal fire and the nigerian petroleum corporation the nnpc has posted a profit for the first time since it was established 44 years ago to explore and sell crude the corporation made a net profit of 287 billion now in 2020 that follows a losses of 1.7 billion there in 2019 and 803 billionaire the year before uh commenting on this we have olabode show me chief executive officer of cap tree limited and special legislative aid to the senate president great to have you on the program yeah thank you good morning good morning yeah so after 44 years what changed well i think it needs to be put in perspective i mean the pi is out there’s going to be changes and one of the changes that’s going to happen is structuring the system that we want to experience so let’s just say there’s a prelude to better things to come the npc has moved like about 200 something million bigger in terms of last two years ago to less than a million and now we’re having a profit nice in the rate of 500 i think it’s good news anyway anywhere you look at it maybe those who are the perspectives that could be yeah we thank god for small messes and we hope that this is sustained especially uh looking at the the changes that we expect to come along with the petroleum industry act yes i i think i think that that is very correct but if i turn the industry out to think like i said before there’s going to be changes that will be structured industry as well but very importantly for any system to work whether it’s in the u.s wherever it needs the active collaboration of stakeholders and in this case the media the civil society also has people too it’s also incumbent opponents to monitor the system to ensure that we compare it with uh integrable companies that will be that way and ensure not only are they profitable that they take initiative they are proactive and they make the industry value chain worldwide all right uh we need to thank you so much uh mr show me uh chief executive of capturing and special legislative aid to the senate president for sharing your thoughts with us thank you celebrate like you call it the little mess celebrate the small wins the small wins coming from nnpc we do expect more yeah we are very expectant thank you so much and enjoy the rest of your day now moving on now the lagos state governor de sangolu says he is making plans to provide better electricity for the public governor sung walu announced that the state is working towards providing 20 20 hours i would love it to be 24 20 hours uninterrupted past supply for residents and business owners in the state mid is known as the seventh edition of lagos corporate assembly bos as they met with business where he also assured of delivering a new hall for commerce at kappa in oshodi area of the state i welcome you to the seventh lagos corporate it’s the seventh edition of lagos corporate assembly boss meets business creating an enabling environment is the key to economic development for this reason the state government is meeting with the private sector in the state on our best to improve the business environment and help increase the gdp of lagos the commissioner for commerce industry and cooperatives kick-starts the event with an explanation on the level of investment ongoing at the leki free zone corridor this assembly has become an advocacy platform where the state government and the business community converge to discuss issues of shared concerns we have a strong presence of federal and state government mdas in the zone as well we also have the leki deep sea port which uh is being developed to be the the best and biggest seaport in west africa i believe that we are about 16.5 meters deep on shore some of the stakeholders in the industry make their presentation and prefer ideas on how to boost the state of the economy facilities awaiting of loading of the imported raw materials are being impounded as early as 60 am [Music] and the companies are being subjected to pay fines for offenses they do not understand we encourage the state government to establish more programs that enable businesses to thrive as this enables more compliance with tax payments which in turn supports the state’s igr projections governor babajide takes the stage explaining how government is supporting the people and other steps taken to make lagos a 21st century economy 20 000 meters in favors locations very small businesses in the state and we’re going to be doing this with the two disputes that will happen because whatever is that they can also guarantee people 18 to 20 hours you know state power and a lot of species that however can have high official union derail that’s water next year we should need to do testing so first quarter of 2023 to see the two represents the lagos corporate assembly is a platform for engaging businessmen and women and the state government is assuring the stakeholders that this is not just a talk show all issues highlighted here will be well addressed well another win in the country is a nigeria’s gross domestic product we grew by 5.01 percent year-on-year in the second quarter of this year this marks three consecutive quarters of growth following the negative growth rate recorded in the second and the third quarters of 2020. this is a lip because the last time we had it was 0.51 that’s the first quarter of 2021 analysts have said that this is just an indication of return of business activities after the restrictions to curb curvy 19. what is the government saying we have a jury in gulali senior special assistant to the president on public affairs to tell us what the government is saying about this hello eduardo to have you on the show good morning good morning to you through the privilege to be with you yeah so i guess uh congratulations in order the economy has grown by 5.01 from one quarter to the other five 0.51 to five points everyone is strongest since 2014 but analysts are saying we shouldn’t just uh you know get too happy because it’s just a rebound from the kv-19 restrictions thank you very much uh you know first and foremost you know this we’re quite proud of the results of course we’re happy that nigeria is on the kind of trajectory that all of us would want in terms of the direction in which the economy is headed uh but by no means are we spending our time uh you know patting ourselves on the back and dancing we recognize uh that uh not all is yet to be there’s still a lot of work to be done uh but i think one of the areas where uh we really really want to dig into kind of the data and the content of the latest gdp report uh is is really the fact that the report itself assessed uh that for the first time in a very long time uh that we are now moving towards what is truly an inclusive economy most of the data clearly suggests that right now we have a scenario uh in which our our growth in the uh services sector which we all know is labor intensive uh has grown to the extent of nearly double digits about 9.2 percent uh the highest since 2010 the highest in more than a decade that’s very encouraging uh when you look at the fact that the non-oil sector contributed about 6.7 uh percent to gdp uh that is the highest rate of non-oil sector contribution to the gdp uh since the third quarter of 2014. uh so we are making a lot of progress and i i don’t think that it would be quite accurate uh to suggest that the recovery is simply a kind of a natural reaction of uh reopening the economy if it was i don’t think we would be seeing growth rates that have not been seen since 2010 and 2014 for example i think it it’s that’s part of it certainly uh but then obviously uh there’s no doubt that the administration of president muhammadu has put in place verifiable and measurable measures to inject further life into the economy you may recall that we put in place the 2.3 trillion naira economic sustainability plan overseen an implementation by his excellency the vice president professor yemi oshibajo and that was really a multi-sectoral intervention uh across the power sector uh the work sector agriculture housing the like social investment msme capitalization uh that really ensured that that we are empowering nigerian-owned businesses who employ nigerian-owned labor who will use indigenous nigerian raw materials for the construction of houses roads uh and other elements across the economy and we’ve now seen the effect of that uh when we’ve looked now at these gdp numbers all right the federal government believes economic sustainability plan has the credits for this uh growth so where are the benefits from this plan where can we see them yeah well first and foremost you know some of it you’d see uh you would see separate from kind of the notion of how bad would things have been if these uh the economic sustainability plan had not been in place so for example uh when you’re in a recession you’re battling out of it and you know that you have hundreds of thousands of msmes across the nation who are on the precipice of sacking their workers because they simply could not afford to pay salaries at a time when the economy was essentially shut down not to speak of the global supply chains uh being shut down at a certain point uh so government’s intervention through the economic sustainability plan part of it was the survival fund where we were able to verifiably and measurably save 1.3 million jobs across 500 000 msmes in all states of the federation across all local government areas of the federation so when you look at it you may not necessarily take all of that uh you know job growth but what you’ve done is okay um i think we lost a jury there due to network and i’m sure we will get him back and uh you know it’s an interesting question you asked him yeah you know about uh where are they see these uh you know yeah because this this is a conversation that’s really going round even uh if you watched our politics today last night uh when xin had a conversation with the former dg of lcci these are some of the things that nigerians are asking that we are seeing these figures but we would like we’re hearing the figures we would like to see and feel the figures and see it in our lives you know and these are some of the questions that andreas actually are asking the government figures exactly i think i think we have our jury back audrey are you back yes i i am back indeed thank you very much i’m sorry about the uh all right so do you want to pick up yeah that would be great thank you very much uh so to the point you are making during the interregnum that you know nigerians want to feel the jobs i wanted to mention the the fact that we’ve been able to save jobs that would have been lost before i go into the new jobs so in terms of the new jobs uh what you’re looking at of course it’s no secret that we put in place the national special public works program uh in which we put 774 000 young people young nigerians uh to work across all seven seventy four thousand uh local government areas of the federation one thousand from every local government reconstructing uh rural roads uh across the nation we’ve already successfully linked uh 500 markets across the country through this uh uh you know special public works program under the umbrella of the economic sustainability plan uh so you’re having impact there and then in addition because the economic sustainability plan was fundamentally and intentionally built to maximize the multiplying economic impact across multiple sectors of the economy all of the goods that we use to reconstruct rural roads we sourced our bitumen locally so none of the materials were used were imported for example ensuring that vendors across the nation in all of the various local governments are being patronized directly by the federal government of nigeria this is extremely important so you have that that new set of jobs then in addition to that we’ve been able to also support uh you know ms semis with with new uh capital so that they can actually expand their existing operations if you look at the the uh the program that we put in place for example for exporters uh the export expansion program uh where we’re providing uh grants these are not loans this is not just like the survival fund they don’t have to pay it back uh grants uh two exporters to essentially expand their existing operations employ more nigerians within their msmes while also expanding the nation’s stock uh of exports uh to other countries across goods and value chains from cocoa to finished products like chocolate vegetable oil plantain chips uh yeah in so many different items so there are so many different interventions uh that that we brought to bear under the economic sustainability plan and even outside of the economic sustainability plan where you know these are actual jobs uh paying uh for you know for the uh uplift of several families across the nation school fees and all the other uh things that are involved and i have not even mentioned uh construction if you look around this country right now external to uh to the economic sustainability plan you have mega projects everywhere they’re in the southwest of course so so you know what one of the things i think that would help uh nigerians to understand and you know flow along with this administration would be if they saw these things in pictures you know i mean because even as we have this conversation yes people are watching and they’re like oh we hear that and we hear this all the time where are they you know so perhaps uh i mean audrey you were you were you you know about broadcasting you should get this thing in pictures and let people see but other than that there’s also the issue of ease of doing business and uh some time ago we spoke to the manufacturers and he said they do feel that the government is making effort in the issue of ease of doing business but when it comes to reducing cost of production uh the issue of multiple taxation it is still an area that seems the government hasn’t done much so if you want to save jobs obviously the manufacturers need to feel the impact of ease of doing business thank you very much uh so to the initial observation you raised uh consigning the need for pictures for example um you know before the incident took place with twitter i’ve been very active on social media particularly twitter facebook and others uh we were very very uh you know diligent about making sure that all of the various projects that we’re uh engaged in uh that we are sending almost monthly or weekly in some cases updates uh of the projects from one stage of development to another uh the 44 super growths on my twitter account for example i’m sure uh the relationship between the nigerian federation and twitter will soon be restored uh you would have seen all of the pictures the the level of completion the even the economic data around how much was paid to the contractors we’ve been very transparent about all of that and we will continue to be i i think uh when we talk about ease of business there are a few aspects of this uh that are important to note if we’re referring to multiple taxation it’s also important for us to recognize that multiple taxation involves multiple tiers of government uh and so the federal government can do a lot in terms of streamlining uh taxation making it easier for people to pay their taxes uh and all of that and also cutting undue uh kind of uh you know tax uh liabilities uh on companies and we can go into measures that have been that we put in place along that line but in so in so doing we should also mention the fact that when we talk about multiple taxation on companies where the shoe is really pinching the foot of these msmes and even some of these large corporations is really the role that state and local governments are playing uh in terms of uh you know levying several taxes that many of these corporations feel are excessive due to the fact that uh you know many of their operations are are at a certain level um of government in their opinion so that’s a major issue so what we have done to to answer your question around solutions on the multiple taxation issue is under the leadership of his excellency the vice president the national economic council had convened the 36th state governance and already uh we’ve come to an advanced uh place in terms of getting the state governors uh on on the same page uh with the federal administration around how we can all effectively uh tax administration in such a way that uh look we have to recognize any any factory or industry that wants to come into a state uh is good for not just the state but for the federal government so that new tax revenue and that investment should not be hindered by uh excessive taxation on the part of uh state and governments and we’re working with them on that all right all right we just ask you to hold on a bit we need to go on a break when we come back we have more to have to talk to you about especially when it has to do with the gdp so please do hold on we’ll see you shortly after the break [Music] [Applause] welcome back you’re still watching our business morning we still have mr galale sse to the president on public affairs still here talking about assessing nigeria’s q2 2021 gdp us thank you for staying with us thank you for having me all right so the the average uh growth in uh the first half of 2021 is now 2.70 and this implies that the nigerian economy will need to grow at an average of 2.5 in the second half of the year to achieve a target growth of 2.5 to about three percent for 2021 what’s the plan to sustain this uh trajectory a phenomenal question thank you very much so so so really moving forward we have to um be very aggressive about the implementation of uh most recent movements you know one of the that we you know really started driving and i want to be very precise about this um if you look at the the numbers you find that we’re historically and this is why i was earlier referring to uh the fact that you’re seeing growth where we want the group to be which are the labor intensive uh sectors uh such as the services sector uh the real sector uh and the like uh and where we had actually seen a little bit of uh a little bit of dip uh interestingly uh was in the oil and gas sector where of course neither oil and gas sector was well known to be capital intensive yes uh but labor intensive not so much uh it’s quite non-intensive so uh what we have done now is moving forward you refer to the nnpc’s movement uh into profit uh 2018 nnpc uh reported a deficit a loss deficit of 803 billion mara in 2019 that deficit uh was bridged down to about approximately 1.7 billion naira and then of course we’ve just reported uh the first uh total uh profit of 287 billion naira the first time in 44 years now the reason why i raised that is because moving forward now what have we just done we’ve just uh the president muhammadu buhari has ascended to the petroleum industry act right now as we speak uh we have uh opec curbs in place that limit our production to about 1.6 million barrels per day we have production capacity in this country oil production capacity of 2.3 million barrels per day the opec curves are expected to expire in the early part of next year meaning we should return to normal output that is going to be a major boon to our revenues that’s number one number two one of the most underreported aspects of the petroleum industry act being ascended to by mr president is the fact that we have about eight deep offshore oil mining fields with productive capacity of about 875 000 barrels per day which would take us above the 3 million uh barrels per day without some benchmark as a nation when fully uh produced what is now happening is those international oil companies have done everything and joint venture with the nnpc to basically say look we’ve done the feasibility we know what is there but we don’t want to begin production until we see the final uh content of the petroleum industry act which is why it was within the wisdom of mr president to say look this is going to be compiled with a consultative process with the ios at the table traditional leaders from the niger delta at the table the legislators at the table and the executive branch of the table to make sure that ever it’s a win-win document not unduly favoring one group over the other now the point here is that when this new production comes on stream because now that the pias are centered to the international oil companies in these eight deep offshore projects specifically bonga southwest in aquarium vonga north bose one and two uh you have uh you have zaba zaba you have a field these are the fields that we’re about to get into now with the iocs once they begin production we’re talking about tens of billions of dollars of new revenue to the federation to be shared across all tiers uh down across the 774 here when when when you talk about uh oil i know that i mean this is a whole lot is another line of conversation because i mean i’m sure you’re following the mtf meetings and there we realize we don’t even know our daily consumption i mean we were talking of crude theft and the gmd of nnpc said we don’t even know how to solve that so even though you’re mentioning these potentials i think when you look at the reality you find out that we also have a lot of hindrances that will not easily bring these things to come to pass you have crew theft you you you i mean you have a lot of things going on there so even though these things sound very laudable you know when you come to the reality of it but i mean we’re not talking about nnpc and all that we’re talking of the gdp and you know the basic economy so now there’s also another issue of inflation uh we’ve had inflation tapering for a fourth consecutive time now in july to 17.38 always beating economies and analysts expectation and so much so that a lot of people are beginning to question i mean we see these inflation figures it doesn’t really match what we are seeing and people are asking uh okay one of the economists we spoke to said the nbc the nbs i beg your pardon need to repackage their basket of commodities which they use you know to measure inflation so i don’t know if you have fought along this line or if you have heard conversations along this line of people kind of questioning you know these inflation figures yeah thank you very much i i i would be remiss not to respond to the initial observation you made i must respond to that i think the the before i go into your next question the the question that my brother asked me was how do we sustain the growth moving forward that’s what he asked me so what i was saying was that we had essentially achieved five percent gdp growth in the second quarter with a dip in oil and gas from the sector and what i am now explaining is that with the pia ascent and with the reforms within the nnpc right which are verifiable for everybody to see uh what we are now going to have are dramatically enhanced revenues meaning that the share of oil and gas to gdp over the next several quarters will be much improved over what it is now meaning that the growth that we’re recording in the non-oil sector will now be accompanied by massive growth in the oil and gas sector meaning that the growth will be sustainable that’s why i mentioned all of that uh and the last point on your observation is that the the petroleum industry act goes to address several of the elements that you mentioned pipeline vandalism and uh infrastructural compromise for example has been addressed that’s why we put in place approximately between 500 million dollars to one billion dollars depending on uh you know the expenditure in the sector every year for host communities with the condition that any host community that compromises their infrastructure will have the repairs of that infrastructure deducted from their host community trust allocation so we’ve addressed those issues in collaboration with stakeholders in the niger delta so we believe uh that the issues you reference uh will be things of the past now that this act has been ascended to but to the other issue you’ve now raised about inflation um first and foremost the inflation figures we are quite uh you know of course optimistic about the fact that we’ve seen four consecutive months of reduction but there’s really no doubt that uh the the overall uh you know tabulation and collection of data in the country is it requires further reform we understand that uh for example when we uh tabulate when the nbs for example tabulates unemployment data in the country and of course all of us cite unemployment data in the country generally uh it’s it’s now well known that you have millions of informal msmes across the nation uh who are being uh tabulated or reported as unemployed meaning that they are tabulated and reported as under the poverty line when in many cases not only are they above the poverty line but they’re actually employing other nigerians who are above the poverty line but because they are not formally uh integrated into the formal economy they’re not counting uh uh in the unemployment figure so there there are quite a number of reforms that have to be undertaken in terms of how we uh collect and manage uh the nation’s economic statistics but be that as it may um we recognize that we’ve made some progress we’re not dancing and celebrating yet there’s a lot more work to do but there’s no doubt about the fact uh that we are on a very positive trajectory moving forward all right uh mr jury igalali thank you so much for your time on business morning senior special advisor the president on public affairs was great having you on business morning thank you so much truly a privilege to be with you thank you so much all right uh now to our next uh conversation the revenue mobilization and fiscal allocation commission has restated commitment to the review of the extent of vertical revenue allocation formula to the three tiers of government in the country the current revenue allocation formula stands at 52.68 for the federal government uh 26.72 for the state and 20.6 for local government areas this is the vertical arrangement at the moment and it has been the arrangement since 1992. well we have mr paul lead economist and uh enterprise partner at spm professionals here to share his thoughts uh on this uh great to have you on the program good morning thank you so very much for having me and good morning yeah so uh this sharing formula has been on since uh 1992. uh is there a need for this change or or is this uh just time for uh you know for this to happen well i think long before now this should have changed because when you notice that before now we had about 500 plus local government now we have 774. so what we give to 500 if you are giving it to 774 local governments or area councils it is certain that that will not be sufficient we do not have up to 36 states now we have 36 states of the federation we have new challenges that is more when you look at what is happening in cardona state people that live in cardona we feel it more than people in lagos so adjusting the revenue share is something that is so very important and when you look at the state of infrastructure you see some level of presence of government when it comes to federal government but when it comes to state government i give you an instance when it comes to railway there is nothing that says federal government must construct railway all everywhere in nigeria we have the same way we have road we can have state rail projects we have lagos states trying to pull that through red line and blue line but how many states can do that can do what lagos is doing it’s going to be a big challenge and all of this is because revenue sharing as a today is not by functionality of state and local government so we have the opinion that government should readjust what is distributing force to favor state and local government i should speak federal government they won’t get bigger share of this revenue from the figure to share 52.68 percent compared to uh state government i get 26.72 and local government at 20.6 this is too small and that is why attention and concentration everything is on federal government because it gets the biggest share of the quote unquote national cake and when you ask what is going on in local government a lot of people don’t even know the names of local government because when you look at what goes to them and also don’t want to start the conversation that even the revenue for local government gets to state government for and i’m happy that the revenue mobilization and allocation i mean revenue mobilization allocation and fiscal commission is saying before we deal with relationship between state and local government let’s first see how we can readjust it vertically so you did talk about that what should be considered to be functionality so what for you would be the appropriate sharing formula what should be the factors to be considered i think first of all responsibility being carried internationally there are some um there are some parameters we use before we talk about fiscal federalism and by fiscal federalism we are talking of share of power share of responsibility and more most importantly share of resources so in all of these you have to look at first equity you want to balance that you are not saying state should be equal i don’t think sokoto emo and lagos can be equal at the same time because lagos as water sokoto has vast land that lagos do not have so the state cannot be equal but in balancing growth we are saying different states should grow at their pace but uh when market fails when we have market failures we can have government intervention so that everybody will grow that does not mean we should slow the growth of lagos because we want emo or social to grow we should slow the growth of sokoto because we want lagos and emo to grow that’s nice naughty so we’ll be looking at equity we also be looking at administrative and efficiency which for me is the most important thing states that are doing well in igr shows should be considered we also have states with unique challenges such as what is happening in bronze over security and so on and so forth we have a lot of say that are producing food for us we have seen what national policy of success have been sharing about 20 for food inflation and even before now we have seen that number even grew to about 22 percent in food inflation how do we support how we intervention or some of these uh revenue sharing with target state and there will not just be revenues you have just to do anything it should be revenue you have because national assembly needs to pass bills to law to say more responsibility we now go to state and local government because when you earn more it is expected that you give more in terms of responsibility and all of these are the things why we think that is important we make revenue to be based on function or functionality looking at uh this issue of bats collection you know whether is this uh coming with this uh you know sharing formula because you know if the states actually start you know collecting that how would this you know affect this whole well for me i think that should be centrally collected but the sharing of that should be more to state and local and pretty much what we’re experiencing experiencing now when you look at federal structure that structure seems to be there already for tax collection and for most states not all states lagos seems to be different but mostly federal government seems to be more efficient in collection even though the collection is still very poor across across board so but if states can guarantee that they’re going to put a structure and system in place to get more revenue then they are closer to the people they are closer to to workers they are also closer to consumers because they’re talking about here not just at the working population then they can get more but as we have it today structures and systems are not in place even at state level i’m aware of uh i think a a court ruling that favors one of the states which i would not like to mention right but when you look at that we have been talking about these numbers but can we can we say that uh this is applicable in some states for instance uh other states we’re going to be setting back the revenue drive too don’t you think this will serve as a motivation i mean if it’s now based on what you make then state will now be forced to look inwards yes and i’ve mentioned that we should be based on what state generates internally and i can tell you for instance you go to bank you run fixed deposits banks wants to pay between tax most states have interacted with the number of states to help with revenue generation and um in in speaking with some of the chief executive of the states some of them were even shocked that withholding tax was supposed to be remitted to them and we approached one of the commercial banks whose claims all the without in the states are for staking to their headquarters and where would they remit it’s not that they limited to lagos state government no because the revenue was not generated in lagos state so the state is losing lagos is losing nobody is getting the getting the money and you may have go to your bank if you have done fixed deposit in recent and you want to have your withholding tax certificate they will tell you they want to start processing it and this is a reality so it’s just an instance where state government to some extent because i know governments will be busy with development politics at the same time with economy but when it comes to revenue drive all of this reality where nigeria today i believe in the next 20 years things cannot continue to be like this we have to develop either naturally or by putting action into this development we are so much spoken about so state government there is need for education uh and more synergy between tax authority at federal level and also tax authority at local and state level but for now uh there are lots that state can even make you know already that state uh authorities are not they are not making this moment today all right looking at you know revenue and spending you know there are concerns that some have said nigeria has a spending problem not a revenue problem what’s your take on that well for me we have huge revenue gap there’s nothing we can say about it we also have spending challenges spending concerns but when you look at our budgets the budget is about 15 trillion convert that to usd convert that to dollars and see what it comes to then compare it with two three four top at university outside nigeria uk or u.s you see that we are doing really to divide the entire budget by the population of about 210 million people what is spending in that we are not even spending enough if we are generating enough and i can tell you that nigerian federal government can generate up to 40 trillion maya make you the last uh budget showed will be generating about eight trillionaire and i’m saying that as a today we could do 40 trillion neither and i’ll give you an instance look at the figures national bureau of statistics shared and sector that have grown telecom seems to be consistent with growth unlike um transport sector that grew by over 90 percent and the trade sector that grew significantly energy and power that grew by over 70 why because people were under lock and key this time last year yes so it means they were not going out now they are going out so people can go by transport transfer particularly road transport according to that report so compare that you know with uh uh what we are talking about regarding uh what how uh government regenerates revenue telecom seems to have been consistent 14 at a time seven percent but the revenue that goes to both fedra and state for telecommunication is not improving so you’re saying there’s something that should be done about taxation of telecommunication one i’m not sure if authority will know how to tax telecom sector i’m not sure i’m not sure if we know what to do because if we know what to do as that sector is increasing and you see infrastructure all all over the sector you see we can get rent we can get access fee we can get some telecom i see paying on bts as low as 50 000 you know for access fee to some states who does that convert that to dollar and see what the same organization pay outside nigeria meanwhile we have more population than those countries we spend more than those countries we speak more than those countries and our culture even allows us to speak but when it comes to what comes to our government it is low it is abysmal and i i think authority needs to do something quickly not just about telecom sector even about other sectors what i think authorities should do beyond looking the numbers is to compare the group and ask them what is happening to their books all right that they are getting from you is elijah really thank you so much for being a part of our conversation this morning obviously we still have a whole lot more to talk about oh yes and uh i think you’re spurring the authorities the tax collection authorities to wake up and and be innovative in the tax collection thank you so much for sharing your time with us mr paul is a lead economist and enterprise partner at spm professionals and he talked to us about the proposed revenue review of revenue formula in the country but we’ll take a break now when we come back with history head straight to the market to stay with us it’s business morning on channels television [Applause] [Music] [Music] [Applause] [Music] do [Applause] [Music] [Applause] [Music] do [Music] [Applause] [Music] do [Music] [Applause] [Music] welcome back we head straight to the markets now and i think the market was in the positive yesterday will oh yes good morning the stock market took a u-turn into the positive zone yesterday and is thanks to investors interest in first bank preschool and eternal eternal stocks rallied most in the market up about by about 10 percent and this may be connected to the latest news in the markets of the new investor who acquired more than three-fifths of the shares of eternal the all share index edged up by about 0.07 percent to close at 39 477.18 basis points while the value of listed nigerian stocks rose by about 15 billion naira and the year-to-date return was lower at 1.97 the total volume of trades decreased by about 6.1 percent to 186.32 million units um valued at 1.79 billion error and all traded in over 3500 deals analyzing by sectors we see that the oil and gas insurance the banking indexes recorded gains while the consumer goods and industrial goods indexes close flat you know it was a positive market breadth in yesterday’s trading session we have our guests we move over to the nes team before we take our guests we’ll move on to nesd index where the bear continued its uh um negative trajectory in that zone it was down by 0.29 and the index was at seven hundred twenty eight point one three uh percent now to talk about it we have coyote or liami a stock broker at csl securities uh limited good morning coyote good morning will thanks for having me kylie we’ll just jump right into it we have had a choppy four-day trading session so far however some analysts expect yesterday’s positive trend to continue today what’s your take on that um i think all week the market has sort of been trading sideways um up to date down tomorrow and that’s pretty much because um the prevailing conditions haven’t changed much um the fx situation still perspective and the local investors are to staying on the sideline so that’s pretty much why i was saying that shocking needs of the market um all the activities we’ve seen have actually looked at it have been to be meet here and small cap companies so the large cap companies are the major drivers that could sort of give the market a clear direction have more or less been flat um so probably continue to see that sort of trend um in the days ahead okay great our investors taking position ahead of the corporate releases in the banking space because we’re yet to hear from them um i wouldn’t say that they are taking position in the banking names um because uh most of the names there the the taiwan banks that were still expecting their numbers um they’ve also either been trading down or trading flat so i wouldn’t say that investors are sort of building up positions i think that a lot of investors are sort of staying on the sidelines and watching um uh praying cautiously um with regards to those names even though we don’t expect any major surprises um we know that they’re going to release their results once tbn approves them and they delete probably because of the audits that they had to do because of the uh in term divisions that they don’t have to pay um so we don’t expect any major surprises from them but people are just sort of being cautious um and not making any big moves at this at this moment thank you so much kyrie for your impute that’s kyle day or liam a stockbroker at cso securities so that’s what we have today ini back to you thank you so much well just before we get to the crypto market let’s go to london now the european union is set to launch a formal competition probe into vedas plan a 54 billion dollars takeover of british chip designer um early next month the investigation is likely to begin at nvidia officially notifies the european commission of its plan to acquire arm britain’s competition regulator said last week that nvidia’s planned acquisition of arm could damage competition and weaken rivals and acquired and required a further lengthy investigation well i think we can head over to the crypto space now laddie uh for the fourth time now i think we’re having a green friday thank god it’s uh i got to say green friday yeah so uh yeah we have a bitcoin but it’s quite uh mixed because we only have a bitcoin and ethereum in the green and solana doing a really well major um altcoins are in the red this morning uh even the some of the stable coins at this point uh the market cap is uh still flirting with this uh 2 trillion dollar market cap it looks like it wants to go below 2 trillion i’m watching that but we know how the weekends can be we’ve been having a green weekend so that might actually pop up at some point at 24 hour volume 108.29 billion dollars traded uh in the volume traded this morning it’s not about 7.36 bitcoin dominance 44.12 uh price of bitcoin 47 228 did have that a bounce from the 46 000 range it’s about 0.40 uh just a slight uh a bounce there 24 hour volume 32.69 billion dollars traded in bitcoin let’s take a look at the status of our weekly chart there we still have that uh macd cross and the histogram forming uh in the green there uh we had a pullback almost nearly a simple moving average there uh the it got almost oversold or at about 60 points on the rsi uh price of ethereum three thousand one hundred fifteen dollars about zero point one three uh percent this morning let’s not bring in michael nacho hello michael hello buddy happy friday happy friday michael great to have you uh well let’s uh look at some news uh with stable coins now we see uh usdc is going for chartered uh federal bank uh license uh what does this mean for the crypto market and uh does usdt have that no usdt does not have that at all it’s actually a fairly big step officially you uh circle the parent company of usdc they officially haven’t filed the application yet but their full intent is two they set it um i believe in their s1 and so basically what this is going to do is it’s going to make them under the supervision of the federal reserve the aka the fed the u.s treasury the office of the controller of currency and they’re also going to have fdic insurance so what this fundamentally means is if um the if if circle becomes a federally chartered bank uh the usdc that you have in your account is actually will be insured by fdic which is nuts when you think about it because right now um you don’t have that situation you have to just trust the faith of circle and that they’re running the best business practices but in a situation where you have a circle being highly regulated um the likes of a of a normal bank and what’s even crazier is unlike a normal bank that practices uh fractional reserve banking um circle isn’t like that they’re they’re going to have fully backed reserves so one to one and there isn’t going to be any of that uh fractional uh banking stuff that we have today in today’s bank so it’s actually going to be one of the safest banks in the world when it comes online all right so for you now is usdt or usdc what’s it for you oh like all my stablecoin is in usdc i do i can’t usdt people use it on a day-to-day basis but just for the sheer fact that there’s just been so much flack thrown against them i can’t comfortably sit um with having stables in usdt it just it doesn’t sit right with me having the amount of um the fact that they’re under investigation right now as well too again once again for uh bank uh bank uh they broke down i believe it was the bank laws they uh lied on there to a bank about what what the funds were for all right um do we have a green weekend coming up or not yeah yeah in the short term it looks like um there has been a lot of accumulation and uh what what what well based on what the on-chain metrics are saying it’s saying that we we could be gearing up for that you know that 6x run that we saw last november okay that ended in march we were gearing up for an event similar to like two of that so you know it’s the upside is expect at least a three to four x from here uh for bitcoin so it’s really explosive q1 that we’re heading into all right q4 okay all right michael thank you so much uh let’s i hope it’s a green uh weekend thank you always great to talk to you thank you all right yeah let’s see how my coin what that coin to watch is doing now i did give this call at 20 cents it’s trading at 45 cents go to a high of about 70 cents market cap 1.66 million uh dollars uh ticker is bobby it’s doing well i hoping it hits the one dollar mark at some point any so you need to watch out for bobby i’ll be watching and i know who others will be watching too but always remember this is not a financial advice yep we’re just reporting the market thank you so much for being a part of this week’s business morning it was a pleasure having you over there and us being here right here i’m ini john mccoy but it’s not over yet 1 30 we’ll be back to give you updates from the world of business thank you so much and enjoy your weekend [Music]
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