Business
African Youth Entrepreneurship Agreement Signed Between the Tony Elumelu Foundation and UNCDF
Memorandum of Understanding Signed on the Sidelines of the UN General Assembly
The Tony Elumelu Foundation and the UN Capital Development Fund (UNCDF) today signed an agreement to support youth entrepreneurship in Africa, with a specific focus on historically underinvested areas within African frontier markets.
In bringing together the expertise, experience and boots-on-the-ground presence in African markets of The Tony Elumelu Foundation and UNCDF, the two organizations will work towards reaching and empowering the most promising youth entrepreneurs on the continent.
A memorandum of understanding (MOU) was signed at the offices of UNCDF on the sidelines of the 77th session of the UN General Assembly. The agreement was signed by Tony O. Elumelu, C.O.N, Founder of The Tony Elumelu Foundation; and Preeti Sinha, Executive Secretary of UNCDF.
“In Africa, we feel the harsh impact of youth joblessness. As African leaders, we must do something. As global leaders, it is important that we work together to address this issue. If we don’t deal with these challenges today, the world will not be a good place for all of us,” said Tony Elumelu, Founder of The Tony Elumelu Foundation. “In Nigeria alone, about 60% of our young ones, who account for half of our population are not employed. This is a problem that we need to resolve collectively. I want to say thank you Preeti, your colleagues, and the entire UNCDF, for supporting this kind of partnership. We know what our young ones in Africa need, we know how having access to finance can help change the trajectory of their lives. I hope that what we are about to do today with this partnership signing will help to expand and scale what we do at TEF. Last year, we partnered with the European Union to empower 3,000 young African women entrepreneurs, because they share our belief that if you empower a woman, you empower an entire community. We hope that this initiative helps us to touch even more lives across the continent.”
“LDCs face a stark demographic challenge, as their population is projected to double to 1.7 billion by 2050. The LDC youth population aged 15 to 24 years is expected to soar to 300 million by 2050, when one in four youths worldwide will live in an LDC. We cannot embark on this journey alone, as the challenge is daunting and requires a concerted effort. This is why we welcome collaborating with like-minded organisations working in the same direction,” said Preeti Sinha, Executive Secretary of the UN Capital Development Fund. “The TEF is one like no other, a leading champion of young entrepreneurship in Africa. UNCDF is thrilled about the endless possibilities for collaboration in the field of youth entrepreneurship, leveraging the strengths of both organisations.”
The agreement is intended to leverage the distinct capabilities of the two organizations. The Tony Elumelu Foundation is the leading philanthropy empowering young African entrepreneurs, serving all 54 African countries. UNCDF serves as the UN’s catalytic finance entity for the world’s 46 least developed countries, which it sees as the frontier economies of today and the growth markets of tomorrow.
As part of the mission to support youth entrepreneurship in Africa, the MOU will call on the two organizations to mobilize resources for youth-led enterprises, including enterprises operating through joint-programmes between The Tony Elumelu Foundation and UNCDF.
The two organizations under the MoU will also look to create platforms that will connect such enterprises with critical resources to support their business models; including financial capital, access to networks and markets and technical assistance.
The Tony Elumelu Foundation is the leading champion of entrepreneurship in Africa. Our objective is to empower women and men across our continent, catalysing economic growth, driving poverty eradication and ensuring job creation. We believe the private sector’s role is critical for Africa’s development and that the private sector must create both social and economic wealth. Founded by African investor and philanthropist, Tony O. Elumelu, C.O.N, and representing his personal commitment to creating a new generation of entrepreneurs, through his investment company, Heirs Holdings, the Foundation is active in all 54 African countries.
UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. UNCDF’s financing models work through three channels: (1) inclusive digital economies, which connects individuals, households, and small businesses with financial eco-systems that catalyze participation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local development finance, which capacitates localities through fiscal decentralization, innovative municipal finance, and structured project finance to drive local economic expansion and sustainable development; and (3) investment finance, which provides catalytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilization.
Business
CBN releases $1.25bn for fuel imports in 2024 despite oil sector reforms
Despite oil sector reforms, the CBN released $1.25bn for fuel imports in 2024, 40% higher than last year, amid continued demand for petrol.
The Central Bank of Nigeria (CBN) has allocated a total of $1.25 billion to oil sector operators for the importation of petroleum products and related items into the country between January and September 2024.
This represents a 40 per cent increase compared to the $891 million released during the same period in 2023.
Despite the ongoing reforms in the Nigerian oil sector and the removal of fuel subsidies, fuel imports remain a significant part of the country’s fuel supply. Marketers have insisted on continuing fuel imports, despite the availability of petroleum products from the Dangote refinery, which began operation in 2024.
The $1.25bn released for fuel imports between January and September 2024 is crucial, as fuel imports are a major consumer of foreign exchange, impacting Nigeria’s foreign reserves and influencing the value of the naira against the dollar.
In addition to the funds allocated for petroleum imports, the CBN also disclosed that 19 other sectors received $18.78 billion in foreign exchange allocations within the same period.
Fuel Price Deregulation and Its Impact
In October 2024, Nigeria fully deregulated its petroleum market, allowing refineries to sell directly to marketers.
This led to an immediate increase in petrol prices, reaching N1,060 per litre before being reduced to N935 per litre in December due to a pricing war between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote refinery.
Data from the CBN’s quarterly statistical bulletin shows that the bank released varying amounts each month, with fuel import transactions peaking in March at $334.47 million. Forex for fuel imports fell to $106.48 million in April but rose again in the following months.
Nigeria’s Petrol Import Bill
In the third quarter of 2024, Nigeria spent N5.14 trillion on importing mineral fuels, which accounted for 35 per cent of the total N14.67 trillion worth of goods imported during the period. In the second quarter, Nigeria’s petrol imports reached N3.22 trillion, the highest on record.
This surge in fuel import costs has been attributed to the continued reliance on foreign exchange for both petrol and crude oil imports, despite efforts to boost local refining capacities.
The Crude Oil Refinery Owners Association of Nigeria (CORAN) has noted that dollar charges on locally refined petrol, coupled with the cost of importing crude, contribute significantly to the high price of locally refined petrol.
CORAN has also called for the Nigerian Maritime Administration and Safety Agency (NIMASA) to fix charges in naira to help reduce costs.
Outlook for 2024
With a significant portion of Nigeria’s foreign exchange going towards petroleum imports, the country’s forex reserves and the stability of the naira remain under pressure.
As the government continues to push for reforms and improvements in the local oil sector, the reliance on imported fuel continues to shape the nation’s economic landscape.
Business
Onion price surge in Nigeria linked to flooding, climate change, and storage issues
The Onion Producers, Processors, and Marketers Association of Nigeria explains the factors behind the rising cost and scarcity of onions in the country, citing flooding, climate change, and storage challenges.
The National President of the Onion Producers, Processors, and Marketers Association of Nigeria (OPPMAN), Mr Aliyu Isah, has explained the reasons for the recent surge in onion prices and the scarcity of the produce in the country.
In an interview with the News Agency of Nigeria (NAN), Isah attributed the price hike to several factors, which have significantly impacted the production and availability of onions across Nigeria.
According to Isah, from the fourth quarter of 2024, onion prices escalated dramatically, with a bag now selling for between N250,000 and N270,000, compared to N70,000 to N90,000 per bag in earlier months.
The price of a medium-sized bulb has also increased, now selling for N500, up from N50 per bulb.
Isah outlined key reasons behind the price increase, primarily highlighting the devastating effects of flooding in the northern states.
“The flooding of 2024 that ravaged all our onion farms, from Sokoto, Kebbi, Zamfara, Kano, Kaduna, Katsina, and up to Adamawa states, led to a severe shortage,” he said.
Additionally, the release of water from dams, such as the Goroyo Dam in Sokoto, exacerbated the situation, damaging onion beds and farmland across the region.
He also mentioned the breakage of dams in Borno State, which destroyed additional onion farmlands, further compounding the supply issue.
Another major factor, according to Isah, was the extended rainfall and high humidity levels in northern Nigeria during 2024, which led to a disease outbreak known as Downy Mildew.
“This disease destroyed most of our onion farms at various stages of cultivation, from seedlings to harvest,” Isah explained.
The shortage of quality onion seedlings has also contributed to the rising prices. The flooding and climate change impacts disrupted local onion seed production, forcing farmers to rely on imported hybrid seeds. Unfortunately, some of these seeds were found to be adulterated, leading to further losses.
Post-harvest losses due to inadequate storage facilities also play a significant role in the price surge. Isah noted that more than 50% of the harvest is lost after production due to the lack of advanced storage technology, making it difficult to preserve onions after harvest.
Despite these challenges, Isah assured that the association is working with the Federal Government to find solutions to boost onion production and address the ongoing price surge.
Business
Nigeria’s VAT revenue hits record ₦1.78 trillion in Q3 2024
Nigeria’s VAT revenue soared to ₦1.78 trillion in Q3 2024, marking a 14.16% quarterly rise and an 88% jump from Q3 2023, says NBS.
The National Bureau of Statistics (NBS) has reported that Nigeria’s Value-Added Tax (VAT) revenue surged to an impressive ₦1.78 trillion in the third quarter of 2024, reflecting a 14.16% increase compared to the ₦1.56 trillion recorded in the second quarter.
This figure also represents a substantial year-on-year rise of 88% from the ₦948 billion collected in Q3 2023.
Also read: Economic crisis drives private hospitals to collapse, says ANPMP chairman
VAT, a consumption tax managed by the Federal Inland Revenue Service (FIRS), is distributed to the federal, state, and local governments through the Federation Accounts Allocation Committee (FAAC).
The latest data highlights the growing importance of VAT as a significant revenue source for Nigeria’s economy.
The NBS report details the components of the Q3 2024 VAT revenue:
- Local VAT payments: ₦922.87 billion
- Foreign VAT payments: ₦448.85 billion
- Import VAT: ₦410.62 billion
Sectoral growth rates varied widely, with human health and social work activities recording the highest quarter-on-quarter increase of 250.39%, followed by household-related activities at 102.09%.
Conversely, sectors like water supply, sewerage, waste management, and extraterritorial organisations saw declines of -41.92% and -36.14%, respectively.
In terms of sectoral contributions, the top three sectors driving VAT revenue were:
- Manufacturing: 22.21%
- Information and Communication: 20.89%
- Mining and Quarrying: 18.90%
The sectors with the least contributions included:
- Household activities: 0.01%
- Extraterritorial organisations: 0.01%
- Water supply and waste management: 0.03%
This growth in VAT revenue underscores the resilience of Nigeria’s tax system in a challenging economic environment, reflecting both expanded compliance and increased economic activity.
As the government continues to implement reforms, VAT remains a critical pillar of its revenue mobilisation strategy.
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