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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.

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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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Arewa Youths Fireback At Kwankwaso Over Attack On Sheikh Jingir,Muslim-Muslim Ticket

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The Arewa Youth Merger Group, APC has faulted former Kano State Governor, Senator Rabiu Musa Kwankwaso over his claim that the people of Kano do not support the position of Islamic cleric, Sheikh Sani Yahaya Jingir on the Muslim-Muslim ticket in Nigeria.

This was contained in a statement signed by the National Coordinator of the Group, Comrade Musa Mujahid Zaitawa and made available to journalists.

The group described Kwankwaso’s criticism of Sheikh Jingir’s opinion as his personal view and not the position of the people of Kano State.

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“It is wrong for Senator Rabiu Musa Kwankwaso to interfere with the opinion of a cleric who is exercising his constitutional right as a Nigerian citizen to express his views,” the statement read.

The group further stated that it was shameful for Kwankwaso to criticize the Muslim-Muslim ticket when FCT Minister, Nyesom Wike, a Christian and member of the PDP, had publicly said there was nothing unconstitutional about it.

The Arewa Youth Merger Group also noted that even Mr. Peter Obi, the NDC presidential candidate for whom Kwankwaso a running mate, had admitted that there was no problem with the Muslim-Muslim ticket and had apologized for introducing religious division into his previous campaign.

The group said Kwankwaso’s attempt to challenge Sheikh Jingir was disgraceful and urged him to desist from making statements capable of causing division among Nigerians just to satisfy his personal political ambition.

The Arewa Youth Merger Group also reaffirmed its support for the Tinubu/Shettima Muslim-Muslim ticket ahead of the 2027 general elections.

 

 

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NYSC Distances Self from NANS Proposed N200 Mobilisation Levy

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By Yusuf Danjuma Yunusa

The National Youth Service Corps has distanced itself from the proposed N200 annual levy by the National Association of Nigerian Students, saying payment of the levy is not a requirement for students seeking mobilisation for national service.

The NYSC stated this in a statement shared on its official X account on Tuesday, following reports that NANS was considering linking payment of its dues to the NYSC mobilisation process.

The Scheme said it had neither discussed nor agreed to the proposed arrangement with NANS, adding that it had not entered into any Memorandum of Understanding with the student body on the collection of any levy.

“The NYSC wishes to state unequivocally that it has not, at any time, discussed, agreed to, or entered into any Memorandum of Understanding with the National Association of Nigerian Students regarding the collection of any levy from students in connection with mobilisation for national service,” the statement said.

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The NYSC explained that its mobilisation process was conducted through established official channels involving the management of the Scheme and the Heads of Corps Producing Institutions, which provide information on their graduates for mobilisation.

“The mobilisation process is neither linked to nor contingent upon the activities of any student association or organisation,” it added.

The Scheme consequently advised prospective corps members and students to disregard any information suggesting that payment of a levy to NANS or any other student association was required for NYSC mobilisation.

“For the avoidance of doubt, NYSC mobilisation process is straightforward and is conducted through established official channels,” the statement said.

The clarification followed comments by the NANS National President, Akinteye Babatunde, that the association was considering a system under which students would pay an annual N200 due.

Babatunde had also indicated that NANS would work with the NYSC and that students might be required to show proof of payment of the association’s dues before being mobilised for camp.

The NYSC, however, reaffirmed its commitment to maintaining a transparent, credible and efficient mobilisation process in line with existing government policies and guidelines.

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Kano Islamic Scholar Declares Kano Widow Marriage Programme ‘Haram’, Urges Government to Stop It

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A prominent Kano Islamic scholar, Sheikh Alaramma Hadi Inuwa Maihula Sanka, has criticised the Kano State Government’s widow marriage programme, describing the practice as “Haram”, urging the government to discontinue it.

Sheikh Maihula made the position known during an interview with journalists in Kano on Tuesday evening, arguing that marriage, like other major religious obligations, is subject to a person’s ability and means.

According to him, Islam does not compel a person who lacks the financial capacity to undertake marriage, just as obligations such as Zakat and Hajj are not imposed on those without the means to fulfil them.

“Marriage, Zakat and Hajj are never made obligatory on anyone unless they have the means,” he said, citing teachings contained in the Qur’an, particularly Suratul Nur, as well as Hadith narrated by Imams Bukhari and Muslim.

The cleric therefore questioned the use of public funds by state governments to organise or finance special marriage programmes, describing the collection or expenditure of public resources for such purposes as religiously unacceptable.

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He argued that government resources should instead be channelled into addressing pressing social challenges affecting citizens, including inadequate healthcare, water supply and support for vulnerable workers.

“Kano city does not have enough hospitals, there are not enough qualified doctors, there is no Portable drinking water, and pensioners have not all been settled,” he said.

Sheikh Maihula also questioned the concentration of specialist healthcare services in Kano metropolis, saying residents from distant local government areas are forced to travel to the city to access medical treatment.

He specifically mentioned Gwarzo, Takai and Tsanyawa, asking why similar hospitals could not be established in such communities to bring healthcare closer to residents.

“Since Gwarzo, Takai or Tsanyawa, the community has been coming to Murtala Muhammad Specialist Hospital, and this hospital was built in 1928. Why can’t a similar hospital be built in Takai, Tsanyawa or Gwarzo?” he asked.

The Islamic scholar also warned that government-sponsored marriages could create additional financial responsibilities for the state if couples subsequently have children and require assistance with their upkeep.

He argued that rather than spending public funds on marriage ceremonies, governments should empower widows and other vulnerable women through vocational training, entrepreneurship support and other forms of sustainable livelihood assistance.

Maihula urged the Kano State Government, as well as other states considering similar programmes, to reconsider the initiative and redirect resources towards programmes that would enable beneficiaries to become economically self-reliant.

He maintained that empowering women to earn sustainable livelihoods would provide longer-term benefits than one-off marriage interventions.

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