Shettima Assures Nigerian Investors of Federal Government Support for Business Growth

Vice President Kashim Shettima on Friday assured Nigerian investors that the administration of President Bola Tinubu would give them the needed support to thrive and succeed in all their businesses across the country.

Speaking on Friday, when he visited the Mamuda Group, a Nigerian multi-industry conglomerate at their Kano headquarters, the Vice President, declared to investors in Kano that the federal government would leave no stone unturned in ensuring that investors achieve their dreams.

Equally, earlier on Friday, Shettima, while speaking at the opening of the 14th Annual Bankers’ Committee Retreat with the theme, “Contract and Commitment to National Development and Economic Growth,” in Abuja, challenged the banking sector to consolidate its role as catalysts for economic growth and development.

This came as the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, tasked bankers to explore bold, and robust solutions to tackle the pressing issues confronting the economy.

Speaking further in Kano, the Vice President, according to a statement issued by his Media Assistant, Stanley Nkwocha, said with commitments by Tinubu, investors’ trust and confidence were gradually returning.

Shettima drew their attention to the government’s continued promotion of sustainability and progress for investment opportunities in Nigeria.

He expressed satisfaction and confidence in the developmental strides and initiatives of the company, observing that the story of Mamuda Group is one of resilience, zeal, and belief in the Nigerian dream.

“We want to commend you. The President speaks your language – the language of commerce, the language of business. Be rest assured that in the spirit of the Renewed Hope Agenda, we will partner with the manufacturing sector to further reposition the Nigerian economy”.

He commended the Group for being one of the largest employers of labour in Northern Nigeria, with about 13,000 employees, even as he expressed optimism that with the company’s upcoming developmental initiatives, its employment strength will reach 23,000 in no distant time.

Shettima said: “In Nigeria, in Africa, he who employs 13,000 people is invariably impacting on 130,0000 lives. This is why we are here with the Deputy Governor of Kano, with the Director General (DG), and with the Executive Secretary of the Nigerian Investment Promotion Commission (NIPC).

“So, come to Abuja and continue the conversation with the NIPC, with the Nigerian Export Promotion Council, and be rest assured that the government will give you full backing to accomplish your dreams.

“In terms of infrastructure, I have had discussions on our way here and the issue of the infrastructural deficit you are facing in terms of access roads will be sorted out”.

The Vice President further applauded the Mamuda Group for generating about 31 megawatts of electricity used in running the company, noting that the commitment to generate more is highly commendable and worthy of emulation.

He also laid the foundation stone of a new factory at the Mamuda Group’s site for expansion.

Earlier, Chairman and Chief Executive Officer of Mamuda Group, Hassan Hammoud, commended the leadership and vision that President Tinubu has brought to Nigeria, saying “the last couple of years has been undeniably challenging for our nation, with economic turbulence testing industries and individuals alike.

He added: Mamuda Group is proud to stand as a testament to what can be achieved through resilience, innovation, and public-private partnership. With over 13,000 employees, we are not just a company but a community that takes pride in uplifting lives and building a stronger economy.”

Meanwhile, at the Bankers’ Committee retreat, the VP said the development of banks should positively correlate with the development of the economy at large, adding that the sector remained the most critical ally to the government regarding the pursuit and achievement of the $1 trillion economy.

The vice president stressed that the, “robust profitability that we have seen in that sector should reflect – at least marginally – in the GDP growth numbers posted by the country at large.”

He said, “Through the availment of credit facilities to key productive sectors, facilitation and syndication of large ticket loans, and by taking a long-term view in your interactions with the market and the economy at large, we believe your efforts will be crucial in achieving a pass mark in this quest” for a trillion-dollar economy.

He said Tinubu intended to shift from the usual sub-optimisation that defined the Nigerian economy over the decades.

Represented by the Special Adviser to the President on Economic Affairs, Dr. Tope Fasua, Shettima, also seized the opportunity to direct the banking industry to address current issues relating to access to cash in the economy.

He said, “Nigerians complain bitterly that they are unable to access even minimal cash when most needed. There seems to have been some moral hazard and adverse selection problem with the involvement of street-side POS merchants.

“Nigerians complain about high and arbitrary charges and exploitation by rogue agents which we are sure you will be able to tackle, with concerted efforts.

“We need more initiatives towards the financing of MSMEs, and we urge you to continue to support the efforts of the federal government in the area of consumer credit culture.”

“We would want to take this opportunity to appeal strongly to the committee to urgently clear up thorny issues in the sector, some of which are impeding the efforts at financial and economic inclusion.”

He said, “That is why some of the painful reforms are taking place at this time and Mr. President, being the valiant leader that he is, has pressed on in favour of the long-term perspective, despite pushbacks.

“The key reforms pertain to the unification of the Naira rates in the official market and the closing of the gap with parallel markets, the removal of fuel subsidies, the reforms in the monetary policy areas especially the treatment of ways and means advances, and the tax reforms.

“None of these reforms are easy to implement but we can see that despite all, they are beginning to yield results. We only ask that our peoples exercise more perseverance while the reforms take root.”

The VP also said the unification of the Naira had coincided with the weakening of the local currency, which has spurred some behavioral adjustments among the people.

He said, “We see that today, Nigerians have cut back in some foreign travels, foreign education has slowed down to the extent that many foreign universities are feeling the pains, but there is now more focus on local educational institutions and many world-standard facilities have now debuted in Nigeria.

“The weakening of the naira has also resulted in a spike in exports as the Marshall-Lerner principle in economics has kicked in for Nigeria — that a nation is likely to see an increase in exports and gain from currency devaluation if exports are price elastic.

“Ditto, a weaker currency will discourage imports that are price elastic and may spur local value-addition and production.”

Cardoso, nonetheless, said a situation where the economy grew on average at 1.8 percent per annum, and money supply grew at about 13 per cent over the past eight to nine years, further attested to the fact that the economy had been facing challenges.

He added that a situation where outstanding Ways and Means, as at the end of 2022, stood at about 11 percent of GDP – and “arguably a world record – further attested to the sordid state of the economy prior to his assumption of office.

He said, “Now, with such challenges, the responses to those have to be equally robust and challenging. And I think it is important, as we have our discussions over the next few days, let us remember this.

“Let us remember the very challenging times we have been through in the past year. Let us resolve that the solutions to these challenging issues have to be equally robust and challenging.

“Some tools may not necessarily be easy and palatable, but they are necessary. We are not in a period of ordinary times. And I’m giving you those statistics so you can hear around them and see the situation the Central Bank in particular has had to deal with over the past year.”

Cardoso noted that the retreat, the first under his leadership as CBN governor, came at a pivotal time for the country amid “challenges that have tested our nation in recent years including poverty, rising inflation, infrastructure deficits, insecurity, and unemployment, among others”.

He said, “Yet, it is not all bleak. In recent times, we have witnessed significant strides made by both government and private partners in leveraging the immense opportunities before us to rewrite our nation’s story.

“However, while progress has been steady, it is evident that the road ahead remains long. The work before us requires focus, innovation, and unwavering resolve to reshape our collective future.”

Deji Elumoye and James Emejo

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