The U.K. economy face period of uncertainties as gauge of services fell to its lowest level in more than three years in April. Companies within the economy are feeling the strain and wary of the possible outcome of the June 23 referendum, hence, the reason why output has dropped in both manufacturing and construction sectors as the majority of companies are waiting for the outcome before making long-term commitments.
Data for service purchasing manager index dropped from 53.7 to 52.3, while that is above the 50 level that marked expansion from contraction, it is the weakest since 2013 and came short of 53.5 median forecast by economists.
This follows a slump in manufacturing and construction data released by Markit Economics, the data showed growth of just 0.1 percent in April.
With the series of disappointing data, economists across the country have been slashing their forecasts for the second quarter, even Barclays forecasted no growth at all.
Alan Clarke, an economist at Scotiabank said “the data were showing that pre-election jitters are hurting business sentiment”.
But David Noble, the chief executive at Chartered Institute of Procurement & Supply, said while the referendum had a “profound effect” on the sector, there are other problems impeding growths.
“The slowdown in the service sector follows similar weakness in manufacturing and construction to make a triple-whammy of disappointing news on the health of the economy at the start of the second quarter [of the year],” said Chris Williamson, a chief economist at Markit.
“The PMI surveys are collectively indicating a near-stalling of economic growth, down from 0.4% in the first quarter to just 0.1% in April,” he said.
Nigeria Receives £4.2 Million Looted By James Ibori
The government of the United Kingdom has repatriated the sum of £4.2million that was looted by associates and family members of the convicted former governor of Delta State, James Ibori.
The Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN, on Tuesday confirmed the receipt of the looted fund in a statement he made available to newsmen in Abuja.
In the statement signed by Malami Special Assistant on Media and Public Relations, Dr. Umar Gwandu, the Minister of Justice disclosed that the naira equivalent of the amount was credited into the designated Federal Government account on May 10, 2021.
The AGF had earlier signed a Memorandum of Understanding for the repatriation of the loot fund on behalf of the Federal Government of Nigeria.
According to him, “the development was a demonstration of the recognition of reputation Nigeria earns through records of management of recovered stolen Nigerian stolen in the execution of public oriented projects”.
AfDB, European Bank To Bridge $2.5tn Africa’s Financing Gap
The African Development Bank Group and the European Bank for Reconstruction and Development signed a Memorandum of Understanding on Monday to promote sustainable private sector development in Africa.
In a statement issued by its Communication and External Relations Department, the AfDB said, “The MoU will help catalyse new sources of financing to help bridge the $2.5tn annual financing gap for development in Africa.
“This gap requires that development finance institutions work in partnership.”
The bank stated that under this partnership, the AfDB and the EBRD would capitalise on their respective
expertise and experience, with a particular focus on climate change, green and resilient infrastructure and capital markets development.
“They will also work on improving business environments, bolstering the real economy and mobilising private sector investment,” the AfDB stated.
It observed that COVID-19 was threatening progress made towards the United Nations Sustainable Development Goals and was exacerbating the debt vulnerability of many African countries.
The bank stated that sustainable private sector development would be key to recovery and prosperity across the continent.
AfDB’s President, Akinwumi Adesina, after signing the memorandum with his counterpart, EBRD President,
Odile Renaud-Basso, was quoted as saying, “The new partnership agreement between our two institutions will pave the way for us to do more together, especially in supporting the growth of Africa’s private sector.
“The impact of COVID-19 on government resources is huge and we need to mobilise more private resources to help African countries build back stronger.”
On his part, Renaud-Basso, said, “The COVID-19 crisis has made the need for better and ever closer collective action even more urgent.
“Collaboration between the EBRD and the African Development Bank has grown from strength to strength over the years in the region.”
Despite Rising Debt Profile, President Buhari Seeks New N2.342T External Loan
President Muhammadu Buhari, on Tuesday, urged the Senate to approve a new external loan of N2,343,387,942,848.00, about $6.183billion, for the Federal Government to finance the 2021 budget deficit.
Senate President Ahmad Lawan read Buhari’s letter of request on the floor of the Senate at plenary.
Last Month, Investorsking recalled that there was a controversy when Edo State Governor, Godwin Obaseki had raised concerns over the financial trouble Nigeria might find herself due to the continuous rising debt profile.
In a recent report carried out by PWC, it was reported that:
“Actual debt servicing cost in 2020 stood at N3.27 trillion and represented about 10 percent over the budgeted amount of N2.95 trillion. This puts the debt-to-revenue ratio at approximately 83 percent, nearly double the 46 percent that was budgeted.
“This implies that about N83 out of every N100 the FG earned was used to settle interest payments for outstanding domestic and foreign debts within the reference period. In 2021, the FG plans to spend N3.32 trillion to service its outstanding debt. This is slightly higher than the N2.95 trillion budgeted in 2020”.
According to DMO Nigeria’s total public debt as at December 31, 2020, was N32.915 Trillion.
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