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We will use Oyo IGR to offset all recurrent expenditure before 2023—Makinde

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Oyo State Governor, Engineer Seyi Makinde, on Tuesday, declared that his administration would ensure that the State’s Internally Generated Revenue (IGR) is able to offset its recurrent expenditure before the end of his current tenure.

Governor Makinde, who made the declaration while giving a keynote address at the one-day Tax Stakeholders ‘Poverty to Prosperity’ Summit held at the Theophilus Ogunlesi Hall, University College Hospital, Ibadan, stated that his commitment to take the State from poverty to prosperity remained on course.

A statement by the Chief Press Secretary to Governor Makinde, Mr. Taiwo Adisa, equally quoted the Governor as telling the dignitaries at the event that the sacked local government chairmen who have been struggling to return to the councils were targeting the funds of the councils.

Makinde urged the people of the state to think of new and innovative ideas to expand the State’s IGR.

According to him, the desperation by the sacked 68 Local Government and Local Council Development Areas (LCDAs) chairmen to return to the offices was informed by the greet to take over the accumulated resources of the councils.
He, however, stated that the era of spending government’s money reckless had gone and the sacked illegal chairmen had gone with it, adding that though many of the sacked chairmen have shown that they were stone-hearted, one could only hope that those who fail to toe the path of peace will be judged accordingly.

Governor Makinde who also spoke at the foundation laying ceremony of the Mini-Mapo Hall at the Headquarters of Ibadan South-West Local Government said that his government would ensure prudent management of public funds.

While laying the foundation stone of the Traditional Council’s building (Mini-Mapo), which was attended by the Olubadan of Ibadan, ObaSaliu Adetunji and his High Chiefs as well as other top Government functionaries, Governor Makinde reiterated the importance of the traditional institution in ensuring peace and order in the society, noting that despite the country operating democracy, the traditional councils could not be overlooked.

The Governor added that the traditional rulers as the closest to the people, who also understand their culture and tradition, remained relevant in maintaining peace and resolving conflicts.

While delivering his keynote address at the tax summit, Governor Makinde noted that growing the State’s IGR has become imperative to the Government’s mandate to move Oyo State from poverty to prosperity.

According to him, strategies have been put in place by his Government to boost the IGR of the State and that the strategies have started yielding fruits.

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He stated that Oyo State was able to raise the IGR from  about N2 billion to N2.7 billion in November 2019.

He said: “We are here today to talk about the Oyo State IGR Roadmap that will facilitate economic prosperity. The issue of Internally Generated Revenue (IGR) is very important as it is tied to how much development the state will experience, all things being equal.

“Without adequate revenue, there will be no resources to fund the budget; the state will have to resort to borrowing for recurrent expenditure or owing for overheads, which is never ideal.

“Trends also show Oyo State’s IGR fluctuates; in 2014 it was N16.30bn, but dropped to N15.66bn in 2015, later increasing to N18.88bn in 2016. For 2017, the IGR figures grew to N22.45bn. While in 2018 it grew to N24.67bn. This put our IGR per capita in 2018 at below N3,000 per person. We can definitely do better.

“The current trend across states in Nigeria is to see IGR as being synonymous with revenue generated from taxes, partly because other sources of revenue, especially natural resources are on the exclusive list.

“Revenue generated from these natural resources goes to the Federation Account and is then shared between the Federal Government and states. A lot has been said about how this has served as a hindrance to development, and how it has made states unwilling to invest in the management of these resources. But that is only half of the story.

“The other half is that it is possible to raise the IGR of the state without raising taxes. And this is the promise that we made to the people of Oyo State while we were on the campaign trail. We are determined to continue keeping that promise.

“Indeed, as clearly stated in our Roadmap for Accelerated Development in Oyo State 2019-2023, our plans to increase the revenue generated in Oyo State without an increase in taxes, stand on four legs: A thorough review of the current IGR process and management in the state; expanding the tax net; looking for new sources of revenue and being aggressive and innovative in the mode of revenue collection by having the State Board of the Internal Revenue Service working in collaboration with seasoned professionals.

“So far, and I am sure we will have this expounded by various speakers today, Oyo State has embarked on a comprehensive review of the IGR process and management. We have been able to plug some holes in the system and this is yielding results. We have also employed new managers of the revenue collection process. Their mandate is to come up with innovative and aggressive ways of getting the untaxed to contribute to the development of the state.”

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“The commencement of the new strategies put in place to increase IGR produced the positive result recorded in December 2019, as we raised the IGR to 2.7 billion Naira from about 2 billion Naira in November.

“Also, we are putting in place a land administration solution that will ensure wider and more effective enumeration of all business and household properties, ensure ease of obtaining land titles and other documents and faster approval of building plans. The land use charge has been fine-tuned and will be responsibly applied.

“Furthermore, we have taken a second look at our vehicle registration and renewal system and by the end of this month, the public can expect a wider, better and faster platform which will be available in all our 34 tax stations. We will continually apply fair and harmonised billings to other rates and levies.

“It is generally agreed in economic circles that the citizens are more inclined to respond positively and even volunteer to pay their taxes when they see how these payments are being put in use. I am happy to report that the taxes paid by the good people of Oyo State are currently being ploughed back into the development of the state. You may be aware of the work being done by the Oyo State Road Maintenance Agency (OYSROMA); we are rehabilitating roads in Ibadan and will move outside Ibadan to other cities before the end of this quarter.

“The work being done in the education sector is also taxpayers’ money in action. Schools are being built and renovated; we are concentrating on our final year secondary school students. We want them to return better results in their WAEC exams this year. We are also able to increase the education budget by 700 per cent compared to last year’s budget.

“Because we believe that health is wealth, we are taking steps to ensure that the people of Oyo State remain healthy. Soon, we will roll out a health intervention programme across all Local Government Areas in the state. The renovation and equipping of hospitals and Primary Health Care Centres in the state remain on course.
“In a few months, we are looking to start running a mass transit system in the state. The modalities are being set up and we will communicate the process with you.

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“Of course, what this means is that we will have to find a way of increasing our IGR especially by looking inwards and exploring areas of competitive advantage. We have to, as a matter of urgency, attract investments into Oyo State.
“Attracting direct investments will take a collective effort. Our administration will continue to invest in security and take other measures to ensure that we create an enabling environment for the growth of investments. On your part, you should be ready to extend the traditional hospitality to strangers, making them feel welcome in our midst.

“We also plead that you file your annual returns early in the year and within the stipulated time.
“As we explore the theme of this Stakeholder’s summit, I enjoin us all to keep our minds open to new ideas and think creatively and innovatively about how to expand our tax net. If, as research has shown, an increase in IGR is a strong determinant of economic development, then those of us in this room should understand how important this mandate is.”

 

In his speech, the Oyo State Commissioner for Finance, Mr. Akinola Ojo, maintained that the summit presented “an opportunity for all stakeholders to interact, obtain first-hand information on the benefits of paying taxes and perhaps most importantly, understand the plans and appreciate the strides by the Government regarding generating the revenue with which it intends to provide requisite services and infrastructure for the benefit of every citizen of Oyo State as well as enhance development in the State.”

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BUA set to establish ultramodern 3million metric tonnes cement plant, 50mw power plant in Adamawa

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One of West Africa’s largest Cement companies,  BUA Cement has announced that it is set to establish a three million metric tonnes cement plant and 50 megawatts power plant in Guyuk and Lamurde local governments of Adamawa state in the North Easter region of Nigeria. This was revealed when the Chairman of BUA, Abdul Samad Rabiu led the BUA Cement Management team on a courtesy call to the Adamawa State Governor, Ahmadu Umaru Fintiri in the Government House, Yola.

Speaking during the visit, Abdul Samad Rabiu said preliminary findings show that the two local governments of Guyuk and Lamurde are reputed to have good quality of limestone deposits and BUA Cement is ready to begin the investment in the state. He added that the BUA will use new technologies to supply power to the proposed cement plant and communities of Guyuk and Lamurde in addition to providing three thousand direct and five thousand indirect jobs.

The Chairman stressed that the Guyuk Cement Plant will be the major investment in the North East by BUA and solicited for support of Governor Umaru Fintiri to set up the factory in Guyuk. Rabiu said the company made a decision to source its raw materials locally and it has invested billions of dollars in various sectors across Nigeria and therefore urged the state government to support BUA to actualize the Guyuk Cement project. In addition, he praised the commitment of the governor within one year in office in many sectors of development despite the economic challenges in Adamawa.

Responding, Governor Ahmadu Umaru Fintiri said his administration’s effort in exploring local contents has started yielding results and thanked BUA for showing interest in establishing the cement plant in Guyuk. He further assured the management team of BUA that government will make whatever is needed and provide the necessary support which will create enabling environment so that the BUA Cement company in Guyuk will become a reality.

He also expressed readiness of the government to protect the investment once it is established and told them that his administration will maintain the good relationship with the company for the benefit of the state.

BUA is Nigeria’s second largest Cement Producer by volume with cement plants in Sokoto and Edo States. The Company’s newest plant in Sokoto is expected to be operational in 2021. When completed, the Guyuk Cement Plant will bring BUA’s total capacity to 14million metric tonnes per annum.

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Dangote cement sustains 54,000 jobs in 4 African countries

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Aliko Dangote

President of Dangote Group, Alhaji Aliko Dangote has said that despite the challenging economic situation in 2019, Dangote Cement  was able to sustain 54,000 jobs in four African countries, where the company has its operations. The countries are Nigeria, Ethiopia, Senegal and South Africa.

The business mogul who disclosed this to shareholders at the company’s 11th Annual General Meeting in Lagos said that more jobs would be created as the company intensifies the export of clinker to other neighboring countries from Nigeria.

“According to our 2019 socio-economic impact assessment study specifically on our operations in Nigeria, Ethiopia, Senegal, and South Africa, we sustained 54,005 jobs (direct, indirect, induced) in these four markets in the year under review,” he said.

Dangote told the shareholders that the year 2019 was a strong year given the tough business environment across most of its operating geographics, disclosing that the group recorded volumes of 23.7 million metric tons and revenues of ₦891.7 billion.

He said: “We recorded a strong EBITDA margin of 44.3 percent. As a result of this performance, the board has recommended for your approval a dividend of ₦16.00 per ordinary 50 kobo share.”

Speaking on the local Nigerian operations, he said: “Nigeria’s cement market grew slightly in 2019. We estimate that total market consumption was up between 2 per cent-3 percent on the 20.7Mt estimated in 2018.”

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Dangote explained that the modest performance was in spite of the fact that the market generally was impacted negatively by the disruptions related to the 2019 election cycles, heavy rains and the loss in land export volumes due to the border closure.

“Dangote Cement’s Nigerian operations remained at 14.1Mt in 2019, including export sales of 0.45Mt. Domestic sales in Nigeria were nearly 13.7Mt, compared to 13.4Mt in 2019. This implies a 2 percent growth mirroring the estimated GDP growth for the year. However, land exports reduced to 0.45Mt from 0.7Mt for the full year owing to the border closure in the last few months of 2019.

“The Bag of Goodies promotion, launched in July, drove strong increases in our Nigerian volumes in the third quarter”, Dangote pointed out, adding that the innovative marketing effort enabled the company to maintain its market share despite the 4.5Mt new capacity which came into the market during the year.”

He alluded to the new feat by Dangote Cement in commencing export of clinker via shipping from the Apapa and Onne ports to West and Central Africa, adding that the management was encouraged by the performance of its offshore operations.

Recall that the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, while lauding the investment drive of Dangote recently said that he was excited with the progress made at Dangote Refinery and Petrochemical plant so far, said that when it becomes operational, the refinery and petrochemical plant would increase its workforce from the current 34,000 to over 70,000.

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Dangote to boost Economic Diversification with Maiden Clinker Shipment

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To reaffirm its status as the biggest cement producer in Africa, Dangote Cement has set the pace with the exportation of 27,800 metric tonnes of clinker to a neighbouring African country.

With this historic maiden voyage from its Export Terminal located in Apapa Port, Lagos weekend, Dangote has gradually made Nigeria, which until recently was one of the world’s largest bulk importers of cement, first self-sufficient in cement production, and now an exporter of cement clinker to other countries.

The exportation of clinker from the Dangote Cement Export Terminal will also place Nigeria as one of the leading clinker exporters in the world. The company is expected to increase the quantity of clinker export to other African countries within the next few weeks, it was further learnt.

It said this development would enable Dangote Cement take advantage of the African Continental Free Trade Area, and by so doing contribute to the improvement of intra-regional trade within the ECOWAS region.

The Manufacturing Association of Nigeria (MAN) has therefore commended Dangote Cement for leading the way for Nigeria to become one of the biggest cement and clinker exporter in the world.

Speaking during the departure of the ship conveying clinker from the Export Terminal at the weekend, Group Executive Director, Dangote Group, Alhaji Sada Ladan-Baki said the increased exportation of clinker and cement to other African countries would not only place Dangote Cement among top clinker exporters in the world, but would also boost Nigeria’s foreign exchange earnings and reduce unemployment in the country.

“The beauty of what we have done is that we are going to be generating foreign exchange for the country in terms of dollars and Euros. For every batch of clinker we export, the money comes back to Nigeria. The amount we are talking about is not small. Presently, Dangote Cement should either be number one or number two exporter of cement in Africa and the revenue we have generated in the form of foreign exchange is running into millions. Today, we have formally launched the Dangote Cement Export Terminal. We are still going to do another major launch when the second ship is going out of the country,” he added.

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Alhaji Sada recalled that only a few years ago, Nigeria was one of the world’s largest bulk importers of cement, saying that “Dangote has gradually made Nigeria self-sufficient in cement production as well as an exporter of clinker to other countries.

He disclosed that the company would also be launching its export terminal in Onne in the next few days, adding that the export terminal would enable the company export clinker, initially to its grinding facility in Cameroon and then to new grinding plants the company is building across West Africa.

He explained that not only would this generate useful foreign currency for Dangote Cement to support other expansion projects outside Nigeria, it would also help to increase the output of the Nigerian plants, saying these would help to improve job creation and increase prosperity in Nigeria.

He stated: “This terminal will assist Dangote to actualise the full potential of the company’s investment in cement. You know as usual, when the rain comes, sales decline, but not clinker export. This feat by Dangote is going to generate a lot of jobs because the Export Terminal has already created jobs to many Nigerians. As at now, the numbers of employed Nigerians at the terminal have reached 100. We are targeting about 200 to 300 workers in Lagos Terminal alone.

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“But, apart from job creation opportunities, the exportation of clinker by Dangote will position the country to participate fully in the Africa Free Trade Liberalisation Agreement when it comes into being, so that Nigeria will be protected against foreign products. It will also help the country compete effectively with every country that are in the business of exportation of clinker. At Dangote Cement, we are going about it aggressively and we are seeing it as an opportunity.”

Alhaji Sada said the company has also concluded plans to increase its clinker and cement export to other countries. “This vessel, being the maiden ship is exporting 27,800 metric tonnes to Senegal and this is just a tip of the ice-berg as to what we have in plan. What we have in plan is to send clinker from Nigeria to Ivory Coast, Cameroon and Ghana. Cameroon as an example, takes about 82,000 metric tonnes every month. Our target is to export at least 4 million metric tonnes of clinker annually to various parts of Africa.

“That is our target that we hope to achieve within the next one to two years. This particular voyage is going to our sister company in Senegal. We have an integrated plant of 1.5 million tonnes and this one is expected to give the plant additional clinker that is required for the plant to sustain production. In the next one week or two, we are going to be shipping 82,000 metric tonnes to Cameroon in batches of about 25,000 to 29,000 metric tonnes per voyage,” he added.

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Speaking on Dangote’s achievement, the Acting Director-General of the Manufacturers Association of Nigeria (MAN), Chuma Oruche praised the wealthiest man in Africa for leading the way in the export of product from Nigeria to other countries.

According to him, this feat by Dangote Cement is capable of boosting Nigeria’s foreign earning and reduce unemployment in the country.

He said: “The export of clinker by Dangote Cement at the weekend will definitely be beneficial to Nigerian economy in terms of export earnings, job creation and wealth creation for families connected with these achievements.”

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