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IMF: Dangote Refinery, Supportive Credit Facility, Can Accelerate Nigeria’s Economic Recovery Process

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3 years ago

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Aliko Dangote

The International Monetary Fund (IMP) has noted that the non-oil sector of the Nigerian economy could be stronger, benefitting from its recent growth momentum, higher production from the new Dangote Refinery, and supportive credit policies.

In IMF’s Executive Board 2021 Article IV Consultation with Nigeria released recently, the global organisation added that Nigeria’s ratification of the African Continental Free Trade Agreement could also yield a positive boost to the non-oil sector while oil production could rebound, supported by the more generous terms of the Petroleum Industry Act.

According to the IMF, Nigeria exited the recession in the fourth quarter of 2020 and its output rose by 4.1 per cent (y-o-y) in the third quarter, with broad-based growth except for the oil sector, which is facing security and technical challenges.

While growth was projected at 3 per cent for 2021, it stated that headline inflation rose sharply during the pandemic, reaching a peak of 18.2 per cent year-on-year (y-o-y) in March 2021, but has since declined to 15.6 per cent in December.

The institution attributed this to the new harvest season and opening of land borders, although it noted that the reported unemployment rates (end 2020) have yet to come down. It, however, confirmed that more recent COVID-19 monthly surveys have shown that employment was back at its pre-pandemic level.

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“Despite the recovery in oil prices, the general government fiscal deficit is projected to widen in 2021 to 5.9 per cent of GDP, reflecting implicit fuel subsidies and higher security spending,” the Fund said. “Moreover, the consolidated government revenue-to-GDP ratio at 7.5 per cent remains among the lowest in the world.

“After registering a historic deficit in 2020, the current account improved in 2021, and gross FX reserves have improved, supported by the IMF’s SDR allocation and Eurobond placements in September 2021.

“Notwithstanding the authorities’ proactive approach to contain COVID-19 infection rates and fatalities and the recent growth improvement, socio-economic conditions remain a challenge. Levels of food insecurity have risen, and the poverty rate is estimated to have risen during the pandemic.”

The directors highlighted the urgency of fiscal consolidation to create policy space and reduce debt sustainability risks and called for significant domestic revenue mobilisation.

“They noted that exchange rate reforms should be accompanied by macroeconomic policies to contain inflation, structural reforms to improve transparency and governance, and clear communications regarding exchange rate policy.

“Directors considered it appropriate to maintain a supportive monetary policy in the near term, with continued vigilance against inflation and balance of payments risks. They encouraged the authorities to stand ready to adjust the monetary stance if inflationary pressures increase,” the consultation noted.

“Directors recommended strengthening the monetary operational framework over the medium term – focusing on the primacy of price stability – and scaling back the central bank’s quasi-fiscal operations. Directors welcomed the resilience of the banking sector and the planned expiration of pandemic-related support measures. They agreed that while the newly launched eNaira could help foster financial inclusion and improve the delivery of social assistance, close monitoring of associated risks will be important. They also encouraged further efforts to address deficiencies in the AML/CFT framework.

“Directors emphasised the need for bold reforms in the trade regime and agricultural sector, as well as investments, to promote diversification and job-rich growth and harness the gains from the African Continental Free Trade Agreement. Improvement in transparency and governance are also crucial for strengthening business confidence and public trust. Directors called for stronger efforts to improve the transparency of COVID-19 emergency spending,” the IMF added.

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60% of Christmas Celebrations Observed by Non-Christians in Kano

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6 hours ago

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December 26, 2024

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By Salisu Baso

An investigation carried out by independent journalist Salisu Baso has observed that about 60% of this year’s Christmas celebrations have been observed by the non-Christian community in Kano.

This year’s celebration has witnessed serious economic challenges, and the majority of Nigerians are managing to survive. Therefore, the Christian community has managed to conduct the occasion with the little earnings from their collective businesses, especially those at various markets in the state.

Investigations also learned that the delay in payment of government salaries to workers in the state has crippled the ceremonial activities, leading to low patronage in the markets.

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The tradition of slaughtering goats by the celebrants has drastically dropped, and the presentation of gifts from well-meaning individuals house to house is also seeing a decline.

Visiting the Sabon Gari area, our source observed that the majority of the beer parlors in the evening hours were full of visitors, while New Road by Court Road, especially Ado Bayero Square, was occupied by a majority of youth celebrating the day.

When contacted, a traditional Igbo Chief, Amb. (Dr.) David N. Onwere, described this year’s celebration as manageable for Nigerians to celebrate the great events as a result of the critical economic conditions facing the nation. He said the majority of people in the state have not traveled to their respective areas due to the high cost of transport fees.

Chief Onwere then congratulated the entire Christian community in the country, particularly in Kano, and wished them a Happy New Year in advance.

 

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Hon. Abubakar Kabir Abubakar Congratulates APC National Chairman on 75th Birthday

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1 day ago

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December 25, 2024

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Hon. Abubakar Kabir Abubakar, a member of the Federal House of Representatives representing Bichi Federal Constituency, has extended his heartfelt congratulations to the National Chairman of the All Progressives Congress (APC), His Excellency, Dr. Abdullahi Umar Ganduje CON, on the occasion of his 75th birthday anniversary.

In a statement personally signed by Hon. Abubakar, he praised Dr. Ganduje for his inspiring life, which exemplifies integrity, honesty, dedication, and resilience—qualities that are the hallmarks of success in any career. “As a politician of the highest repute, you live an inspiring life which clearly demonstrates that integrity, honesty, dedication, and resilience are the hallmarks of success in any career,” Hon. Abubakar stated.

Hon. Abubakar also expressed his prayers for Dr. Ganduje, wishing him continued guidance and wisdom from Almighty Allah as he remains steadfast in leading the APC to greater heights. “As you celebrate your 75th birthday anniversary today, it is my prayer that Almighty Allah continues to guide and give you wisdom, as you remain resolute in moving our great party to greater heights,” he added.

Dr. Abdullahi Umar Ganduje, who has served in various capacities, including as the Governor of Kano State, is widely recognized for his contributions to the political landscape of Nigeria. His leadership and dedication have earned him respect and admiration from colleagues and constituents alike.

The congratulatory message from Hon. Abubakar underscores the high regard in which Dr. Ganduje is held within the APC and the broader political community. As the party’s National Chairman, Dr. Ganduje continues to play a pivotal role in shaping the future of the APC and advancing its mission and vision.

 

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18-Year-Old Suspect in Niger State Murder Case Dies in Police Custody

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1 day ago

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December 25, 2024

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An 18-year-old suspect, Fatiyah Abdulhakeem, who was accused of killing a retired Permanent Secretary in Niger State, Adamu Jagaba, has died in police custody.

Police sources confirmed Abdulhakeem’s death on Thursday, although the exact cause remains unclear. The suspect, recently paraded by Niger State Commissioner of Police, Shawulu Ebenezer Danmama, admitted during his arrest to being hired by workers of the deceased to carry out the murder at Jagaba’s block industry near the PDP Secretariat in Minna.

The Niger State Police Spokesperson, SP Wasiu Abiodun, said Abdulhakeem complained of severe stomach pain and coughing on December 19. He was taken to the General Hospital, Minna, for treatment but died while receiving medical attention. His body has been deposited at the hospital morgue, pending a postmortem examination to determine the cause of death. Investigations are ongoing.

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