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Economy

Analysts Give Conditions for Economic Recovery

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Nigerian economy
  • Analysts Give Conditions for Economic Recovery

Following the optimism of the Presidency that the Nigerian economy will rebound in 2017, financial analysts say the country must pay the required price for it to see recovery and an eventual rebound.

President Muhammadu Buhari, had in his New Year speech, expressed joy that the nation was witnessing a new and impressive turnaround in its socio-economic situation and security.

He also said the economic recovery and growth plan in 2017 was anchored on optimising the use of local content and empowering local businesses.

However, the Managing Director/Chief Executive Officer, Enterprise Capital Partners Limited, Mr. Rotimi Fakayejo, told our correspondent that if the economy must start recovering from the current recession, the government must be committed to doing things differently this year.

He said a lot of things had gone wrong in terms of perception of foreign investors and wrong policies, but maintained that a stable and consistent foreign exchange policy would boost the confidence of investors in the economy, while also attracting them to the country.

“Investors who bring in money must be able to get their money out when they want and in good value. This is the problem we are currently facing,” Fakayejo said.

According to the Enterprise Capital boss, an improvement in the price of crude oil in the international market will help the country earn more foreign exchange, which will help boost forex supply and the foreign exchange reserves.

He called on the government to look inwards, reduce imports and improve local production of goods and services.

“We need improvement in power supply to do this, and the rehabilitation of some of our roads is a step in the right direction. Putting the economy on a recovery path is a possibility, as it isn’t rocket science. But with what we’ve seen in the past months, an outright rebound of the economy in 2017 may not be guaranteed,” Fakayejo noted.

An Economist and Vice-Chairman, Quantum Securities Limited, Mr. Andrew Elueni, said with the ongoing resolution of the Niger Delta crisis and more Nigerians taking to one form of agriculture or the other, national production would likely pick up this year.

“For agricultural production, even if we are not producing to export, such production will boost our Gross Domestic Product. This, therefore, is some sort of growth for the economy. If the oil sector improves, other sectors linked to it will also do likewise. All these are growth indicators,” he added.

A financial analyst and Chairman, Association of Stockbroking Houses of Nigeria, Mr. Emeka Madubuike, said the recovery of the economy from recession was possible if certain conditions were met.

According to him, the country has what it takes to get out of recession, adding that issues bordering on power supply, local production and internal peace and stability were critical factors.

Madubuike noted that the country’s challenges were more of policy implementation rather than initiation.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

The 46th President of the USA, Joe Biden Reversed EX-President Donald Trump Immigrant Visa Ban on Nigeria

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Joe Biden Economic Impliccations on Nigeria

The 46th President of the USA, Joe Biden Reversed EX-President Donald Trump Immigrant Visa Ban on Nigeria

On his first day in office, the 46th President of the United States of America reversed the immigrant visa ban placed on Nigeria and other countries by the former president, Donald Trump.

The executive order, 9983, issued by the former president Donald Trump on January 31st, 2020, unveiled the ban on immigrant visas to six countries; Myanmar, Eritrea, Nigeria, Sudan, Tanzania, and Kyrgyzstan.

Amongst numerous executive orders signed by the new president of the United State, Joe Biden, on January 20th, was the reversal of some of the orders issued by his predecessor, Donald Trump, which bans citizens of certain countries from accessing the immigrant visa.

According to the Trump administration, a system was established to access three important criteria-

“whether a foreign government engages in reliable identity-management practices and shares relevant information; whether a foreign government shares national security and public safety information; and whether a country otherwise poses a national security or public-safety risk.”

The failure of Nigeria and other countries to measure up to this criteria landed them on the ban list.

Biden’s Press secretary, Pen Psaki said additional action which will ensure that the president-elect delivers his promise to the American people will be announced.

“In the coming days and weeks, we will be announcing additional executive actions that confront these challenges and deliver on the president-elect’s promises to the American people,” Pen said.

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Economy

Buhari to Spend N729 Billion on 24.3 Million Poor Nigerians

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Group of People Waving Flag of Nigeria in Back Lit

Buhari to Spend N729 Billion on 24.3 Million Poor Nigerians

President Buhari is working on spending N729 billion on 24.3 million poor Nigerians despite the present economic recession, weak industries and zero new job creation.

Sadiya Farouq, the Minister of Humanitarian Affairs, Disaster Management and Social Development, disclosed this during the inauguration of the Federal Government’s emergency intervention database for the urban poor.

In a statement released by Nneka Anibeze, the Minister’s Aide, the financial intervention would help cushion the impact of the COVID-19 pandemic on identified people.

According to the Minister, the Federal Government would disburse N5,000 each to 24.3 million poor and vulnerable Nigerians for a period of six months. A total of N729 billion.

In part, the statement reads, “According to records, about 24.3 million poor and vulnerable individuals were identified at the end of 2020 and registered into the National Social Register.

“Each beneficiary will receive N5,000 for a period of six months.

The government is embarking on handouts despite the nation’s fiscal challenges and economic recession. The N5,000 or N729 billion can help build or support available industries, fast track economic recovery and improve job creation against sharing it with people it will has little to zero impact on their lives.

This is one of the numerous leakages being addressed by the same administration. The database can not be verified neither are the people to be paid.

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Economy

FG Paying N1.1 Billion Per Day as Subsidy

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petrol Oil

FG Paying N1.1 Billion Per Day as Subsidy

The recent jumped in crude oil prices means landing cost of Premium Motor Spirit (PMS), popularly known as Petrol, has increased but the Federal Government has maintained the old pump price of N161 – N165 per litre.

In a series of reports, the Petroleum Products Pricing Regulatory Agency (PPPRA) open market price, the price fuel marketers are expected to sell, is N183 per litre as of yesterday. A break down showed N160 is the landing cost per litre while the additional N23 is the Petroleum Products Pricing Regulatory Agency (PPPRA) pricing template.

Therefore, with the payment of additional N23 as stipulated in the PPPRA pricing template and the national petrol per day consumption figure at 50 million litres, the Buhari led administration is offsetting about N1.1 billion on petrol consumption daily.

The Nigerian National Petroleum Corporation (NNPC) has been deducting the amount before remitting balance of oil sales to the Federation Account, according to a Businessday report.

An anonymous person in the oil marketing industry said: “We are back to the era of subsidy and Nigeria is bleeding badly because of this.

With deregulation, the current price of petrol should not be less than N181, so who is funding subsidy of the product for Nigeria to buy at the current fixed price?“.

Another oil marketers said, “the government does not have the boldness to allow full deregulation of petrol because of the spiral effects on Nigerians, and bearing in mind that Nigerians are in very hard times.

Alao Abiodun, the Head of Energy Research, New Nigeria Foundation, explained that “Because of the loans from the IMF and World Bank that they got with the condition that petrol should be deregulated, I believe the government is trying to manage the problem.”

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