- FG to Boost Foreign Borrowing in 2017 to Fund Budget
Nigeria is planning to borrow more abroad than locally to fund next year’s budget in a bid to benefit from lower debt costs and reduce pressure on its interest bill, Budget and National Planning Minister Udoma Udo Udoma said.
“There is going to be a shift to foreign, especially concessional debt,” Bloomberg quoted Udoma to have said in an interview in Abuja.
“Lower interest rates from foreign debt will help us manage our debt servicing, and also free domestic credit for the private sector.”
The West African nation will probably boost its budget by 12.6 percent to 6.87 trillion naira ($22 billion) in 2017, according to preliminary budget documents.
That’s to stimulate growth after the economy contracted in the first half of this year as a drop in prices and production of crude oil squeezed government revenue, and shortages of power and foreign currency weighed on output.
The country’s debt stood at $61.45 billion by June, of which $11.26 billion was foreign borrowing, according to debt office data. At 13.2 percent of GDP, Nigeria has one of the lowest debt ratios in sub-Saharan Africa, while its debt-service costs as a percentage of revenue are above 35 percent, according to budget documents.
This means “we have to be keen on the cost of new debt we take on,” Udoma said. “The Finance Ministry is finalising a borrowing plan and will soon present figures of actual levels of debt and sources.”
Rates on Nigeria’s local-currency bonds are more than eight per cent points higher than on its dollar debt. The nation’s $500 million bond due in July 2023 yields 6.86 percent, while its naira securities have an average yield of 15.25 percent, according to Bloomberg indexes.
The Debt Management Office said it plans to raise as much as $4.5 billion in the international market through 2018, starting with $1 billion of Eurobonds this year. The African Development Bank plans to lend Nigeria $4.1 billion over the next two years, and $10 billion by 2019, the lender’s president, Akinwumi Adesina had said.
“All our debt will be invested in capital projects that will help boost growth and create jobs,” Udoma said. “We expect that next year’s reflationary budget will get us out of recession completely, and then from 2018, we will reduce taking on new debt.”
The government plans to raise as much as $15 billion by selling assets to help fund the budget, according to Udoma. So far, some of the presidential jets have been put on sale, and some railroads have been put on concession to General Electric Co., which will invest $2.2 billion to revamp, provide rolling stock and manage the existing lines.
“A committee has been set up to identify the assets and soon we will list them,” he said. “We are looking at everything, including bringing forward some oil-licensing rounds and putting airports on concession.”
In a bid to avoid the delays that saw the 2016 spending plans approved about four months into the fiscal year, Udoma has already started discussing the 2017 budget with parliament.
“We have drafted it in consultation with lawmakers, and we will send the actual proposed budget to the House of Representatives this month,” he said. “It’s a document they will already be familiar with.”
FG Places 3,964 Nigerians on Watch List, Suspends Passports
No fewer than 3,964 Nigerians are currently on the watch list of the Nigeria Immigration Service.
The names of the affected individuals, it was gathered, have been placed with security agencies at the nation’s international airports where they will be arrested on sight.
According to the 2020 NIS annual report suspect index, 308 persons were placed on the watch list in 2019, 166 in 2020, while 51 persons were stop-listed in two years.
No fewer than 3, 438 passports are also being watch, while 23 are on the exemption list.
The report states, “Suspect index reviews and maintains the list of persons whose entry into Nigeria is prohibited or on whom special instructions are in place with respect to entry and departure from Nigeria. The travel documents are the instruments used to achieve this objective through synergy with other law enforcement agencies and court of competent jurisdiction.”
In a related development, the NIS has revoked 149, 875 stolen or lost passports and uploaded them to Interpol’s Stolen and Lost Travel Documents database via the Web Services for Data Management platform.
Meanwhile, there are indications that the FG may not meet its 2021 revenue projection from NIS services.
Findings show that there might be revenue shortfall from visa; e-PASS, ECOWAS Residence Card, the Combined Expatriate Residence Permit and Aliens Card and other documents issued by the NIS due to the reduced number of foreign visitors and expatriates in the country following COVID-19 travel restrictions.
Immigration sources said the number of Italians, Britons, South Africans, Chinese, Indians, and other Asians, who constitute a large percentage of expatriates in the country, had reduced on account of travel restrictions imposed by their respective countries.
The erstwhile Comptroller-General of Immigration, Muhammad Babandede had said the service recorded a 40 per cent revenue shortfall in 2020 due to the COVID-19 pandemic.
Figures from the NIS showed that in 2018, the immigration service generated N20.3bn from CERPAC; N40.7bn in 2019, and N16.7bn in 2020.
Envoy Considers Establishment Of Chinese Banks In Nigeria To Boost Economy
Mr Cui Jianchun, the Chinese Ambassador to Nigeria, says he is in talks with Chinese owned Banks to establish operations in Nigeria.
This, the envoy said, is to boost Nigeria’s economy and expand trade relations between the two nations.
Cui made this known on Tuesday in Abuja while addressing Journalists during the commemoration of the 2021 Chinese Moon Festival and China-Nigeria Cultural week.
According to Cui, the establishment of Chinese Banks in Nigeria will also be one of the key areas of discussion during the China-Nigeria Binational Committee meeting, which he is also pushing for the establishment.
He said that an efficient financial institution was a key driver to achieving a strong economy, one Nigeria can learn from China’s experience.
“Before my departure from Beijing to Abuja, I talked to several banks in China. When you list the World’s 10 big banks, six are in China.
“The Banking sector is very important, because, without money, we cannot build our industries.
“What I am thinking here is best to talk to the governor of Central Bank and how we can allow the Chinese Banks to run office here and now, they are doing the feasibility studies on that.
“I am working hard that in the Bi-national meeting, I hope we can make a big decision and give a big push to let the banking industry and insurance industry because financial integration and institutions are key.
“If you go to China, you will find our banking industry is very powerful, not only for business but the change in the way of life.
“Because of the COVID-19, the Banking Industry is a little hesitant, but I told them Nigeria has a lot of human resources and as long as we work together, we can do big things.
“And that is why it is important to invest in the banking industry, to solve this problem,” Cui said.
Extolling the extant China-Nigeria trade relations, Cui noted that the volume of trade between China and Nigeria is nearly 20 billion US Dollars, with an increase from 2020’s 19.2 billion dollars.
Cui said the Chinese economy is restoring to the normal post-COVID-19 pandemic and both governments are working hard on how to expand imports and exports.
Speaking on the event, Cui said the China’s moon festival is a very important and significant one for China as it symbolises family reunion, national peace and social harmony.
The envoy said the 2021 celebration is also a special one as it coincides with the 50th Anniversary of China-Nigeria’s bilateral relations.
He said that both countries also share Oct. 1 as their National Days.
He said it is also on that note that the Chinese Embassy is honouring 50 Nigerian employees of Chinese Companies in Nigeria for their outstanding performance and contribution to strengthening diplomatic ties.
Dr Ifeoma Anyanwutaku, the Permanent Secretary, Federal Ministry of Information and Culture, also lauded the Nigeria-China relations.
She said the relations had recorded great successes over the past five decades.
“The five decades of co-operation had since witnessed several cultural activities and exchanges in the spheres of arts, music, dance, exhibition, cultural administration, training and capacity building of cultural officers.
“And recently, the development of Cultural Industries centres in Nigeria, among others.
“I must add that China, through the youth-oriented programmes such as the photos competition and similar activities in the past is surely a dependable ally.
“In redirecting the energy and mind of our youth to creative ventures, thereby furthering the Nigerian government’s policy of lifting a hundred million Nigerians out of poverty in the next 10 years”, Anyanwukatu said. (NAN)
Lagos Prohibits Open Cattle Grazing, Sanwo-Olu Signs Bill Into Law
Lagos State Governor Babajide Sanwo-Olu, on Monday, assented to the bill prohibiting Open Cattle Grazing and Trespass of Cattle on Land, signing the legislation into law 11 days after it was unanimously passed by the State House of Assembly and transmitted to the Executive arm for authorisation.
By implication, it is now criminal in Lagos for cattle rearers to occupy unapproved public areas and private land with their livestock for grazing. The law also prohibits the act of moving cattle round public places by herders.
The signing of the anti-open grazing law by the Governor followed the decision of Southern Governors’ Forum last August, setting the September deadline to pass the law across member States.
There have been crises witnessed in some States, resulting from alleged open grazing.
Although farmer-herder crisis is not pronounced in Lagos, the anti-open grazing law is expected to prevent the spillover of the menace into the State.
Sanwo-Olu, who assented to the bill during the State’s Executive Council meeting in Alausa, directed the security agencies to swing immediately into action and enforce provisions of the law.
He said: “By the powers vested in me as the Governor of Lagos State, I am signing the bill on Open Cattle Grazing and Trespass of Cattle on Land into law to prohibit issues associated with open grazing of livestock.”
The Governor also signed legislation transforming the Lagos State Domestic and Sexual Violence Response Team (DSVRT) into a full-blown agency.
The development coincided with the commemorative month dedicated to raising awareness on gender-based violence in the State. The Governor and members of the State’s cabinet wore attire with purple shades to support the campaign against sexual violence.
The DSVRT legislation provides for the establishment of Sexual Offenders’ Register that would help the State efficiently tackle violations in the communities.
After signing the law, Sanwo-Olu said: “Raising awareness about domestic and sexual violence is an important piece of working to end the cycle of violence. It is important to reiterate the State Government’s zero tolerance to all forms of sexual and gender-based violence. We will not rest on our oars until the menace is reduced to the barest minimum in Lagos.”
The Governor appointed Mrs. Titilola Vivour-Adeniyi as the Executive Secretary of the new agency.
Vivour-Adeniyi was the coordinator of the response team before the legislation was signed into law.
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