- Moody’s Endorses FG Economic Policies
The Moody’s Investor Service, an international economic and financial rating agency, on Tuesday endorsed the various policies deployed by the Federal Government to manage the nation’s economy to exit from the prevailing economic recession.
The rating agency in its explanation of the key drivers that informed Nigeria’s B1 rating asserted that the country’s medium term growth prospects remained robust despite the challenging environment.
It added that the government’s balance sheet remained strong relative to the unfavourable environment and temporarily elevated interest payments; while the authorities pursued their efforts to grow non-oil taxes.
Moody commended the Federal Government for making “Significant gains in terms of governance and transparency in the oil sector”.
It said that the rating coupled with improved availability of data, progress in restricting the Nigerian National Petroleum Company were commendable steps being undertaken by government.
The rating agency also described Nigeria’s balance sheet as stronger than peers despite current turbulence being experienced based on observed underlying projections.
Moody submited that Nigeria’s balance sheet would continue to compare favourably with peers with government debt remaining well below 20 per cent of GDP over the coming years against 55 per cent median for B1 rated peers.
The agency also prospected that in 2017 and 2018, it expected Nigeria’s balance of payments to move back into surplus, supported by government external borrowings and a falling current account deficit.
It said, “The latter is quickly reducing, supported by falling imports and increased oil production.
“Depreciation of the Naira, soft capital controls and current dollar scarcity have been relatively effective at constraining imports.
“We expect foreign exchange to grow modestly in 2017.”
In conjecturing the factors that could change the rating up, Moody reasoned that successful implementation of structural reforms by the Buhari administration and the broadening of revenue base would jack it up.
It said that strong improvement in institutional strength with respect to corruption, government effectiveness and the rule of law would also play its role in elevating the rating.
Others are: the rebuilding of large financial buffers sufficient to shelter the economy against a prolonged period of oil price and production volatility.
Egypt Leads Nigeria, South Africa in Foreign Direct Investment
The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.
South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.
The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.
However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.
The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.”
UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.
“The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.”
FG to Partly Fund Six Rail Projects Connecting All Regions
The Federal Government will pay a total sum of N71 billion to partly fund six rail projects connecting all regions of the country.
In the report obtained from the Federal Ministry of Finance, Budget and National Planning, the six rail projects marked for development this year are Lagos-Kano rail line (ongoing), Calabar-Lagos (ongoing), and Ajaokuta-Itakpe-Aladja (Warri).
Others are the Port Harcourt-Maiduguri railway, the new Kano-Katsina-Jibiya-Maradi line in Niger Republic and the Abuja-Itakpe and Aladja-Warri Port and refinery/Warri new harbour.
The Buhari administration will also spend N15.1 billion on the development of safety and security of critical projects, airport certification, runway construction, terminal building, among others in the aviation sector in 2021.
Last week, Rotimi Amaechi, Minister of Transportation, said the Lagos-Kano line would be connected from the Ibadan end of the Lagos-Ibadan railway and would cost $5.3 billion.
“We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What was approved a year ago was the contract,” the minister said.
He added, “The moment I announced that the Federal Government had awarded a contract of $5.3bn to CCECC (China Civil Engineering and Construction Corporation) to construct Ibadan-Kano, people assumed the money had come in; no.
“We have not got the money, which is a year after we applied for the loan. We have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence.”
FG Launches E-ticketing Platform to Deepen Train Usage and Convenience
In a bid to improve the usage and enhance the convenience of train transport in Nigeria, the Federal Government on Thursday announced the launching of the Electronic Ticketing platform for the Kaduna-Abuja rail services.
The N900 million E-ticketing platform was introduced by the Minister of Transportation, Chibuike R. Amaechi, and the Nigerian Railway Corporation.
Amaechi said the new platform would improve efficiency, promote accountability, reduce leakage and enhance economic growth, as well as save time.
The E-ticketing platform was a Public-Private Partnership project done in conjunction with Secure ID Solutions, who provide and would manage the system for 10 years in an effort to recoup its investment before the Nigerian Railway Corporation take charge.
Kofo Akinkugbe, the Chief Executive Officer, Secure ID Solutions, said as the new E-platform issued 25,000 tickets after a successful pilot test on Thursday.
Potential Travelers can book via three ways:
1. Mobile app
3. POS or Cash at the station
A validator would be used to scan the ticket barcode to ascertain its authenticity before boarding.
Amaechi further announced that self-service ticket vending machines at various train stations would be introduced soon.
Vitafoam Expands Net Asset per share by 54.3 Percent in 2020
Fixed Income N5 Trillion Maturing Security to Sustain Nigerian Stock Exchange
COVID-19 Plunges Nigeria’s Oil Revenue by 41% in the First Nine Months of 2020
News3 weeks ago
Heartbroken American Mistress Displays Dangote’s Buttocks in a Viral Video
Crude Oil4 weeks ago
Crude Oil Rose to Almost $52 Per Barrel After Trump Signs Stimulus Package
News3 weeks ago
FCMB Group MD Links to Death of Tunde Thomas, Husband of Married Staff He Fathered Her Kids
Investment2 weeks ago
London Real Estate Company for African Investors Announces its Launch
Finance3 weeks ago
President Buhari Increases Npower Budget by N365 Billion
Technology4 weeks ago
Chinese Government Goes After Jack Ma and Empire
News3 weeks ago
Tunde Thomas: FCMB Commences Review Into Allegations of Unethical Behavior Against MD Nuru
Brands4 weeks ago
Prada’s Profits Drop by $219 Million, Sales in China Up by 60%