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Economy

Okonjo-Iweala Urges Nigeria to Target Global Supply Chains

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Nigeria

WTO DG Ngozi Okonjo-Iweala says Nigeria must actively attract global supply chains to create jobs, boost manufacturing and cut import dependence

The Director-General of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, has urged Nigeria to deliberately target global investors and relocating supply chains to accelerate job creation, deepen manufacturing capacity and reduce dependence on imports.

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Also read: Ngozi Okonjo-Iweala Economic Reforms Praise with Caution

She made the call on Wednesday during a discussion titled “From Scale to Capital: Financing Nigeria’s Role as Africa’s Digital Trade and Infrastructure Anchor,” held at Nigeria House on the sidelines of the ongoing World Economic Forum (WEF) in Davos.

A short clip from the session was shared by GLAZIA on its X handle.

Okonjo-Iweala noted that rising geopolitical tensions, particularly between the United States and China, have intensified supply chain diversification as companies adopt “China+1” strategies to reduce overreliance on a single production hub.

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She said these global disruptions present a significant opportunity for Nigeria, but only if the country aggressively positions itself as an attractive investment destination.

“As you said, some good reforms are being pursued right now, but they need to yield to job creation. That is where we are lacking,” she said, referring to recent economic reforms.

According to her, Nigeria must move beyond macroeconomic stabilisation to deliberately target investments that generate employment and strengthen domestic production.

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“What I would like to see is a continued effort to attract investment into the country, because there is an opportunity now to attract these supply chains,” she said.

She added that Nigeria must actively court investors across major economies.

“Everything we can do to showcase Nigeria as a country worthy of investment is what we should be doing. We should deliberately have strategies to go after those investments and investors—to go to China, the US, whatever it takes—to come and invest in our country.”

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While noting that much of the current supply chain diversification remains within Asia, with India emerging as a key destination, Okonjo-Iweala said Nigeria should position itself to attract a sizeable share of the shifting value chains.

She highlighted renewable energy, textiles and pharmaceuticals as priority sectors.

“Let’s build solar panels in Nigeria. We are importing, but we can also manufacture. We have the renewable capacity,” she said.

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On textiles, she lamented Nigeria’s heavy reliance on imports.

“Every time I buy a piece of wax fabric, I check to see where it’s made. Many of the shiny new textiles we are wearing now are not made in Nigeria; a lot of them are imported.”

She also pointed to pharmaceuticals as another sector with strong potential for local manufacturing and investment.

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The panel also featured the Managing Director of the Bank of Industry, Dr Oludapo Olusi.

Meanwhile, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, speaking earlier to Bloomberg at the World Economic Forum, said the country remains focused on discipline, reform credibility and sustained engagement amid increasing global fragmentation.

Edun disclosed that the Federal Government aims to raise Nigeria’s tax-to-GDP ratio to 18 per cent in the short term, with increased revenues channelled into social services and infrastructure.

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Also read: Rivers state of emergency: Is Nigeria’s democracy safe with its courts?

He reaffirmed the government’s commitment to fiscal discipline, investment attraction and leveraging Nigeria’s resources to drive sustainable economic growth in a rapidly changing global economy.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

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NRS

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

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Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

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He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

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The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.

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Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The NRS urged taxpayers to rely on the provisions of the law and official explanations when assessing their obligations under the new framework.

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