'Seun Ibukun-Oni, Abuja
Tayo Busayo, Abuja
Jane Otu, South South
DAILY COURIER - In 2024, several public and private sector organizations significantly contributed to Nigeria's economic growth and development. Here are ten notable entities, along with open sources supporting their inclusion:
1. Nigerian National Petroleum Company Limited (NNPCL)
In 2024, the Nigerian National Petroleum Company Limited (NNPCL) played a pivotal role in shaping Nigeria's economy through strategic initiatives and significant financial milestones.
Financial Performance and Profitability
NNPCL reported a remarkable profit of ₦3 trillion, underscoring its position as a cornerstone of Nigeria's economic stability. This financial achievement reflects the company's effective management and its contributions to national revenue.
Refinery Rehabilitation and Increased Production
A significant highlight of NNPCL's operations was the revival of both Portharcourt and Warri Refining & Petrochemicals Company (WRPC). The refinery resumed operations, producing 125,000 barrels per day, thereby reducing Nigeria's dependence on imported refined petroleum products. This move not only enhanced energy security but also contributed to job creation and local economic development.
Debt Management and Financial Strategies
NNPCL secured a $3.3 billion loan, known as Project Gazelle, to prepay future royalties and taxes to the Federal Government. By the end of 2023, $2.25 billion had been drawn from this facility, with repayments scheduled to begin by mid-2024. This strategic financial maneuver aimed to stabilize the company's operations and ensure consistent contributions to the national economy.
Challenges in Fuel Importation and Subsidy Management
Despite these achievements, NNPCL faced challenges, particularly in managing fuel imports and subsidies. The company's debt to gasoline suppliers exceeded $6 billion, leading to financial strains and impacting its ability to import petrol. This situation resulted in prolonged fuel scarcity, affecting economic activities nationwide.
Strategic Partnerships and Domestic Transactions
In a bid to alleviate foreign exchange pressures, the Nigerian government approved the sale of crude oil from NNPCL to the Dangote Refinery in local currency (naira). This policy shift aimed to reduce the monthly demand for foreign exchange, saving approximately $7.32 billion annually, and facilitating local fuel marketers' access to supplies.
Throughout 2024, NNPCL's strategic initiatives, financial management, and operational challenges significantly influenced Nigeria's economic landscape. The company's efforts in refinery rehabilitation, debt management, and strategic partnerships contributed to national revenue and economic stability, despite facing hurdles in fuel importation and subsidy management.
2. Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) implemented several strategic measures to stabilize and stimulate the nation's economy amid persistent challenges.
Monetary Policy Adjustments
To combat rising inflation, which reached 32.70% in September 2024, the CBN increased the Monetary Policy Rate (MPR) multiple times, culminating at 27.25% in September. This tightening aimed to curb inflationary pressures and attract foreign investment by offering higher returns.
Foreign Exchange Reforms
The CBN initiated significant foreign exchange policy reforms, resulting in a unified, better-regulated, and market-reflective official exchange rate. This move enhanced transparency and improved the availability of foreign exchange, with gross reserves exceeding $40 billion.
Economic Growth and Investment
These reforms contributed to increased capital inflows, with foreign investments more than doubling to $6 billion in the first half of 2024 compared to the same period in 2023. The CBN projected economic growth aligning with World Bank estimates of around 3.6% for the year, supported by ongoing reforms.
Commitment to Stability
Under Governor Olayemi Cardoso's leadership, the CBN emphasized its readiness to utilize all available tools to manage inflation and maintain economic stability. The bank's focus on transparency, resilience, and stability aimed to foster sustainable economic growth and improve the well-being of Nigerians.
Through these concerted efforts, the CBN played a pivotal role in shaping Nigeria's economic landscape in 2024, striving to create a more stable and prosperous environment despite prevailing challenges.
3. Dangote Group
In 2024, the Dangote Group significantly bolstered Nigeria's economy through substantial contributions in industrial production, job creation, and infrastructure development.
Industrial Production and Economic Growth
The Dangote Group's operations, particularly in cement manufacturing and oil refining, played a pivotal role in Nigeria's economic expansion. Dangote Cement reported a 69.1% increase in group revenue, reaching ₦2,560.6 billion, and a 37.1% rise in EBITDA to ₦908.7 billion for the nine months ending September 2024. This growth was driven by a 1.9% increase in group volumes to 20.7 million tonnes, with Nigerian volumes up by 9.5% to 13.2 million tonnes. Additionally, the company exported 22 shipments of clinker from Nigeria to Ghana and Cameroon, resulting in a 75.5% increase in Nigerian exports to 873 kilotonnes.
The Dangote Refinery commenced operations in October 2024, producing petrol and other refined products. With a storage capacity of 500 million litres of petrol, the refinery is positioned to meet Nigeria's domestic fuel demand, potentially reducing the nation's reliance on imported petroleum products.
Job Creation and Infrastructure Development
The Dangote Group's investments have been instrumental in job creation and infrastructure development. The commencement of operations at the Dangote Refinery and the expansion of cement production facilities have generated numerous employment opportunities, contributing to economic stability and growth. The group's commitment to value-added processes is projected to boost Nigeria's GDP by over $25 billion, underscoring its role in the nation's economic development.
Recognition and Awards
The group's contributions have been acknowledged through various awards. Dangote Industries Limited and its subsidiaries received excellence awards from the Nigeria Employers Consultative Association (NECA) during its 2024 annual night of recognitions. These accolades highlight the group's impact on Nigeria's industrial growth and economic diversification.
In summary, the Dangote Group's strategic investments and operations in 2024 have significantly contributed to Nigeria's economic growth, industrial self-sufficiency, and infrastructure development, reinforcing its position as a cornerstone of the nation's economy.
4. Nigerian Communications Commission (NCC)
The Nigerian Communications Commission (NCC) significantly bolstered Nigeria's economy through its regulatory oversight and promotion of the telecommunications sector. The telecom industry's contribution to Nigeria's Gross Domestic Product (GDP) rose markedly, from 7.6% in 2014 to 16.36% in the second quarter of 2024, as reported by the National Bureau of Statistics (NBS).
This growth positioned telecommunications as the third-largest contributor to real GDP in Q2 2024, following agriculture and trading industries, which accounted for 20.35% and 16.39%, respectively.
Under the leadership of Dr. Aminu Maida, appointed as Executive Vice Chairman in November 2023, the NCC implemented policies aimed at further increasing the telecom sector's GDP contribution to 25%.
The NCC's regulatory framework fostered a competitive environment, attracting substantial investments and facilitating the expansion of telecom infrastructure nationwide. This expansion enhanced connectivity, supported digital services, and stimulated economic activities across various sectors.
Additionally, the broader Information and Communications Technology (ICT) sector, encompassing telecommunications, information services, publishing, media production, and broadcasting, accounted for 19.78% of real GDP in the same period, underscoring the sector's pivotal role in Nigeria's economic landscape.
The NCC's efforts in promoting innovation and ensuring a conducive regulatory environment have been instrumental in driving the growth of Nigeria's digital economy, thereby contributing significantly to the nation's overall economic development in 2024.
5. Shell Nigeria
Shell Nigeria made substantial contributions to Nigeria's economy through its activities in the oil and gas sector, as well as its efforts in supporting the country’s energy transition and social development initiatives. Here are some of the key ways in which Shell Nigeria impacted the Nigerian economy:
Oil and Gas Production: Shell Nigeria continued to be one of the largest oil producers in the country. The company’s operations, primarily through Shell Petroleum Development Company (SPDC), remained a major source of revenue for the Nigerian government. The oil and gas sector, which Shell plays a crucial role in, is a vital contributor to Nigeria’s GDP, accounting for around 9.4% of the country's GDP in 2024.
Export Revenue: As one of the leading players in Nigeria’s oil export market, Shell Nigeria helped the country maintain its position as one of the largest oil exporters in Africa. Shell’s oil exports, along with natural gas, contributed significantly to Nigeria's foreign exchange earnings, which are critical for the country’s economic stability.
Energy Transition Investments: In 2024, Shell Nigeria continued its commitment to energy transition by investing in cleaner energy solutions. Shell invested in renewable energy projects such as solar power and biofuels. The company also focused on reducing its carbon emissions in line with global energy transition goals. These investments are helping to diversify Nigeria’s energy sector and reduce its dependence on fossil fuels.
Employment and Local Content: Shell Nigeria's operations provided direct and indirect employment to thousands of Nigerians. The company’s local content policy encouraged the development of Nigerian expertise and contractors, particularly in the oil and gas sector. By supporting the training of local professionals, Shell contributed to skills development, which is vital for the long-term sustainability of the energy industry.
Fiscal Contributions: Through taxes, royalties, and dividends to the Nigerian government, Shell Nigeria contributed significantly to national and state revenues. This financial contribution is essential for funding public services and infrastructure projects across Nigeria.
Overall, Shell Nigeria's operations in 2024 remained integral to the nation’s economy by driving revenue generation, supporting local communities, and helping to transition the country towards a more diversified and sustainable energy future.
6. Nigeria Customs Service (NCS)
The Nigeria Customs Service (NCS) made significant contributions to Nigeria's economy through its activities in revenue generation, trade facilitation, and supporting national security. Here are key ways in which NCS impacted Nigeria’s economy:
In 2024, the Nigeria Customs Service (NCS) significantly bolstered the nation's economy by surpassing its revenue targets. By November 12, 2024, the NCS had collected approximately ₦5.079 trillion, exceeding its annual target of ₦5.07 trillion with over a month remaining in the fiscal year.
This substantial revenue generation played a crucial role in funding infrastructure projects, social programs, and essential public services, thereby supporting Nigeria's economic stability and growth.
The NCS plays a crucial role in facilitating international trade by managing the flow of goods through Nigeria’s ports, borders, and airports. In 2024, the NCS streamlined trade processes, reduced bottlenecks, and improved efficiency at key entry points. This helped Nigerian businesses engage in smoother import and export operations, thus enhancing Nigeria’s competitiveness in global markets. Timely clearance of goods helped boost trade volumes, benefiting industries like agriculture, manufacturing, and retail.
By enforcing policies that encourage local production and reduce excessive reliance on imports, the NCS supported Nigeria’s efforts to diversify its economy. For example, the NCS worked to clamp down on the illegal importation of goods that compete with locally produced items. This policy aimed to protect and promote Nigerian industries, especially agriculture and manufacturing, thus contributing to the country’s economic diversification agenda.
The NCS also played a vital role in curbing smuggling activities, which not only affect government revenues but also undermine the local economy. In 2024, the NCS strengthened efforts to combat the illegal trade in goods like arms, drugs, and counterfeit products, which could harm public safety and economic stability. The enforcement of border security measures helped reduce the influx of smuggled goods that could undermine domestic industries and hurt tax revenues.
Overall, in 2024, the Nigeria Customs Service significantly contributed to the Nigerian economy by boosting government revenues, improving trade facilitation, supporting industrial growth, ensuring security, and contributing to broader economic goals such as diversification and sustainable development.
7. Nigeria Exchange Group (NGX)
The Nigeria Exchange Group (NGX), played a pivotal role in contributing to Nigeria's economy through various channels:
Capital Raising and Investment Growth:
The NGX facilitated a significant amount of capital raising through Initial Public Offerings (IPOs), bond issues, and rights offerings, enabling businesses to access much-needed funds for expansion, innovation, and infrastructure development. In 2024, companies raised substantial funds to invest in key sectors of the economy, including manufacturing, energy, and infrastructure, thus contributing to economic growth.
Investor Confidence and Market Performance:
The NGX demonstrated resilience, recording impressive gains and attracting local and international investors. Despite some global economic challenges, the NGX exhibited a strong performance, boosting investor confidence in Nigeria's economy. This resulted in an increase in market capitalization, contributing to Nigeria’s financial market stability.
Financial Inclusion and Diversification:
The NGX continued to serve as a vital platform for small and medium-sized enterprises (SMEs) to access financial markets, promoting financial inclusion. This enabled businesses from diverse sectors to attract investment, thus supporting economic diversification away from oil dependency.
Corporate Governance and Accountability:
The NGX’s emphasis on corporate governance and compliance standards helped improve the transparency and accountability of listed companies. This not only enhanced the credibility of the Nigerian capital market but also attracted foreign investments, thus contributing to Nigeria’s economy.
Promoting Sustainable Investments:
In 2024, the NGX continued to push for environmental, social, and governance (ESG) criteria, encouraging businesses to adopt sustainable practices. This attracted socially conscious investors and enhanced the reputation of Nigerian companies in the global market, thus contributing to long-term economic sustainability.
Through these efforts, the NGX made a significant impact in 2024 by acting as a catalyst for economic development, financial inclusion, and market stability in Nigeria.
8. Federal Inland Revenue Service (FIRS)
The Federal Inland Revenue Service (FIRS) played a critical role in Nigeria’s economy through its responsibilities in tax administration, revenue generation, and compliance enforcement. The contributions of FIRS to Nigeria's economy in 2024 include:
Increased Revenue Generation:
The FIRS significantly boosted government revenue by improving tax collection efficiency. It made significant strides in achieving the government's revenue targets for the year by enhancing tax compliance and closing revenue gaps. The agency effectively mobilized resources through income tax, VAT, and other tax forms, contributing a substantial amount to the federal government's coffers.
Revenue Figures: In 2024, the FIRS was instrumental in achieving a record revenue of approximately ₦10 trillion through taxes, a notable increase from previous years. This growth was driven by enhanced digitalization of tax processes and expanded taxpayer engagement.
Tax Reforms and Policies:
The FIRS implemented various tax reforms aimed at widening the tax net and improving compliance across sectors. This included the expansion of the Voluntary Asset and Income Declaration Scheme (VAIDS), tax amnesty programs, and the roll-out of digitized tax collection systems, which made it easier for both individuals and businesses to pay taxes and for the government to track collections.
These reforms helped bring more people and companies into the tax net, thereby reducing the dependency on oil revenues and contributing to the diversification of the economy.
Support for Economic Diversification:
By improving the efficiency of tax collection and enforcement, FIRS supported the Nigerian government's efforts to diversify its economy away from oil dependency. Increased tax revenue allowed for the funding of various non-oil sectors, such as infrastructure development, agriculture, manufacturing, and technology.
Strengthening Government Fiscal Capacity:
By consistently meeting revenue targets, FIRS enabled the government to fund key development projects, including infrastructure, healthcare, and education. This helped improve the standard of living and contributed to the creation of jobs, thus positively impacting economic growth.
Collaboration with Other Agencies:
FIRS collaborated with the Central Bank of Nigeria (CBN), the Nigerian Customs Service (NCS), and other relevant agencies to ensure the effective implementation of tax laws and improve revenue collection across various sectors. These collaborations helped expand the scope of revenue collection from both domestic and international sources.
Through these efforts, the FIRS made substantial contributions to Nigeria’s economy in 2024 by improving fiscal management, boosting revenue generation, and supporting the country’s overall economic development and diversification goals.
9. MTN Nigeria
In 2024, MTN Nigeria made significant contributions to the Nigerian economy through its tax payments and other financial obligations to the government. In the first nine months of 2024, the company paid approximately ₦126.6 billion in taxes, maintaining its position as one of Nigeria's largest taxpayers.
This amount represents a 31% decline from the ₦184.5 billion paid during the same period in 2023. Despite this decrease, MTN Nigeria's tax payments underscore its substantial role in supporting the country's fiscal framework.
In 2023, MTN Nigeria paid a total of ₦543.9 billion in taxes and levies to the Nigerian government.
These tax contributions are vital for funding government initiatives, infrastructure projects, and social programs, thereby fostering economic development and stability in Nigeria.
MTN Nigeria remained a key player in the telecommunications industry, providing essential services such as mobile phone connectivity, internet access, and data services to millions of Nigerians. In 2024, MTN further expanded its coverage across rural and underserved regions, improving digital connectivity and enabling more Nigerians to access mobile services. This not only improved communication but also facilitated digital inclusion, driving economic activities in remote areas.
Driving Digital Transformation:
MTN Nigeria played a central role in driving Nigeria’s digital transformation agenda. The company's continued investments in expanding high-speed 4G and 5G networks helped facilitate the adoption of new technologies such as e-commerce, mobile banking, and digital financial services. This digital shift contributed to productivity improvements in sectors such as retail, banking, education, and healthcare, boosting overall economic activity.
Investment and Infrastructure Development:
MTN Nigeria continued to invest heavily in upgrading its network infrastructure in 2024, including the expansion of its 4G and 5G networks. These investments not only created jobs but also improved the quality of communication and internet services, which supported the growth of Nigeria’s digital economy. Furthermore, MTN's infrastructure projects supported other industries, including e-commerce, media, and entertainment, fostering overall economic growth.
Contributing to Economic Diversification:
MTN Nigeria’s efforts to diversify its offerings beyond traditional telecom services helped the company contribute to Nigeria’s economic diversification goals. In addition to mobile services, MTN invested in fintech, entertainment, and e-commerce platforms, which are vital components of a more diversified economy. By promoting the growth of non-oil sectors, MTN supported the reduction of Nigeria's dependency on oil revenues.
10. Access Bank Plc
Access Bank Plc made notable contributions to Nigeria's economy through various channels, including financial services, infrastructure investment, and job creation. Below are some of the key areas where the bank contributed to the nation's economic growth:
Revenue and Profit Generation
Access Bank continued to be a significant player in the Nigerian banking sector, generating substantial revenue and profits. The bank's financial growth positively impacted Nigeria's banking and financial systems, contributing to national economic stability. The bank's strong performance helped bolster Nigeria's financial services sector.
Job Creation and Employment
As one of Nigeria’s largest commercial banks, Access Bank created thousands of direct and indirect jobs. The bank's operations, including branch expansion, digital services, and corporate activities, helped to support the livelihoods of many Nigerians, particularly in the areas of retail banking, corporate banking, and customer service.
Support for Small and Medium Enterprises (SMEs)
Access Bank has been a significant supporter of SMEs in Nigeria through various lending programs, partnerships, and grants. By providing financing to small businesses, the bank contributed to job creation, poverty reduction, and economic diversification. These businesses, in turn, fueled local economies, particularly in rural and underserved areas.
Impactful Investments in Key Sectors
In 2024, Access Bank increased its investments in critical sectors such as agriculture, healthcare, energy, and technology, aligning with Nigeria’s economic diversification efforts. These investments helped stimulate growth in key sectors of the economy, contributing to the overall economic development and job creation in those industries.
Tax Contribution
As a large corporate entity, Access Bank paid significant taxes to the Nigerian government, contributing to the country's revenue base. In addition to corporate taxes, the bank’s operations generated taxes from employee salaries, transaction fees, and various other financial services, supporting Nigeria's fiscal framework.
Overall, Access Bank’s activities in 2024 played a critical role in the Nigerian economy by supporting financial services, infrastructure development, job creation, and financial inclusion.
These organizations have been instrumental in driving Nigeria's economic growth, development, and resilience in 2024.
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