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

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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.

The beautiful life of the Nigerian university lecturers that you do not know

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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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Federal Government Approves N4 Trillion for Development Commissions

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The Federal Government has announced the approval of a groundbreaking N4 trillion budget for development commissions across the country. The funds aim to accelerate regional development and address critical infrastructure gaps in underserved areas.

This landmark decision was confirmed during a federal executive meeting chaired by President Bola Tinubu. According to officials, the allocation is targeted at bolstering the activities of existing development commissions, including those in the North East, Niger Delta, North Central, and other regions requiring special intervention.

Focus Areas of the Budget
The N4 trillion will reportedly focus on key development priorities such as:

Infrastructure rehabilitation, including roads, bridges, and power supply.

Support for internally displaced persons (IDPs) and resettlement programs.

Job creation initiatives to tackle unemployment in affected regions.

Social programs aimed at healthcare, education, and capacity building.

Government’s Commitment
Speaking on the development, the Minister of Finance, Mr. Wale Edun, stated that the budget reflects the administration’s commitment to fostering inclusive growth and equitable resource distribution. “This is a bold step to address longstanding challenges in regions that have been neglected for years,” he remarked.

The announcement has sparked mixed reactions across the country. While some citizens and regional leaders have praised the move as a step toward addressing inequalities, others have called for transparent implementation to ensure the funds are utilized effectively.

This allocation marks one of the largest investments in regional development commissions in Nigeria’s history, signaling the government’s intent to bridge the gaps in infrastructure and social welfare.

Stay tuned for more updates as details of the implementation strategy emerge.

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Deputy Senate President Barau Jibrin Distributes 1000 Motorcycles to Kano Police

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Deputy Senate President Barau Jibrin has distributed 1,000 operational motorcycles to the Kano State Police Command, in a move aimed at enhancing the mobility and operational capacity of the police force. The distribution ceremony, held in Kano, was attended by various dignitaries and stakeholders.

In his speech, Jibrin expressed his gratitude to the Nigerian police for their efforts in maintaining peace in Kano. “I am thanking the Nigerian police Kano command for bringing peace to reign in Kano,” he said. He acknowledged the role of traditional rulers in supporting the police and emphasized the importance of their contributions to the state’s security.

Jibrin highlighted the significance of the motorcycles in improving the efficiency of the police force. “My intention is to give a motorcycle to every policeman,” he stated, underscoring his commitment to equipping the police with the necessary tools to perform their duties effectively.

Muktara Gashash, Chairman of the Eminent Persons Forum, commended Jibrin for his generous gesture. “This initiative will greatly enhance the operational capabilities of the Kano police,” Gashash remarked, praising the Deputy Senate President’s dedication to supporting law enforcement.

Kano State Commissioner of Police, Salman Dogo Garba, also spoke at the event, urging his fellow officers to utilize the motorcycles to enhance their service delivery. “As we embrace this new chapter of enhanced mobility and operational capacity, I urge my fellow police officers to embrace these motorcycles as tools of service excellence,” Garba said. He emphasized the importance of professionalism, integrity, and accountability in their duties.

Garba further encouraged the police officers to use the motorcycles to strengthen their relationships with the communities they serve. “Let us leverage this significant investment to forge even stronger bonds with the communities we serve, fostering trust, cooperation, and mutual respect,” he added.

The distribution of the motorcycles is expected to significantly improve the response time and effectiveness of the Kano State Police Command, contributing to the overall safety and security of the state.

 

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President Tinubu Seeks Senate Confirmation for Lt. General Oluyede as Chief of Army Staff

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President Bola Tinubu on Friday wrote the Senate, seeking confirmation of Lieutenant General Olufemi Oluyede’s appointment as the substantive Chief of Army Staff.

“In his letter sent today, President Tinubu seeks Oluyede’s confirmation in accordance with the provision of Section 218(2) of the 1999 Constitution as amended and Section 18(1) of the Armed Forces Act,” Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, revealed in a statement.

The statement is titled ‘President Tinubu writes Senate, seeks confirmation of Lt. General Oluyede as Chief of Army Staff.’

Tinubu appointed Oluyede as the Acting Chief of Army Staff on October 30 following the illness of Lieutenant General Taoreed Lagbaja.

General Lagbaja, however, died on November 5.

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Onanuga said, “President Tinubu is confident about the leadership qualities, professional integrity, and experience of Lt. General Oluyede to lead and inspire the army to ensure national security and stability.”

Before he was appointed Acting Chief of Army Staff, Oluyede, a member of the 39th Regular Course, like his predecessor, served as the 56th Commander of the elite Infantry Corps of the Nigerian Army, based in Jaji, Kaduna.

 

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