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FG Approves $39.9m Cameroon-Nigeria Border Link Bridge

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The Minister of Power, Works and Housing, Babatunde Fashola
  • FG Approves $39.9m Cameroon-Nigeria Border Link Bridge

The Federal Executive Council on Wednesday approved a Revised National Policy on Environment for the country and the contract for the construction of the $39.9m Cameroon-Nigeria border link bridge.

These were the highlights of a meeting of the council presided over by the Acting President, Yemi Osinbajo, at the Presidential Villa, Abuja.

The Minister of Information and Culture, Alhaji Lai Mohammed; Minister of Environment, Mrs. Amina Mohammed; and the Minister of Power, Works and Housing, Mr. Babatunde Fashola, briefed State House correspondents of the meeting’s outcome.

Mohammed said the policy on environment which was first formulated in 1991 was first revised in 1999.

She said it has become imperative that the nation formulate the new policy framework because of the need to capture some of the emerging issues that developed since the last revision.

She listed some of the issues to include climate change, coastal erosion, desertification, erosion, pollution and insecurity.

The minister said, “What the policy does is to look at all the different inter-sectoral issues that we have whether it is with water, health, power agriculture and bring them in to have a multi-sectoral response.

“It went into an extensive stakeholder consultation, a greater part of the new policy environment sees partnership with the private sector and with the communities as absolutely essential to the sustainability of our environment.”

The minister said the new policy provided better opportunity to engage with states, local governments and communities and executing the priorities of the change agenda.

Fashola said the council approved the memorandum for the construction of Cameroon-Nigeria Border link bridge, at Ikot Efiom under the African Development Bank support.

The project, he said, was meant to improve the relationship between Cameroon and Nigeria post the International Court of Justice’s judgement over Bakassi.

He said the approved bridge was part of the link road between Enugu-Abakiliki Way which is already completed and part of larger Lagos-Mumbasa Highway.

” $38m is for the construction contract and $1.9 million for the consultancy and this was done under ADB procurement guidelines,” he said.

Fashola also said the council approved the resuscitation and completion of the Kaduna Eastern Bypass highway, which was started in 2002 and was initially planned to have been completed within three years.

He said the road was a 50 kilometre highway and dual carriage way with nine bridges over rivers and rail crossings.

“The project which was first awarded in 2002 was N16bn. We have had to get approval for N22bn verbatim and so that takes that project cost now to N32bn.

“The contractor was paid N5.5bn in 2002. If we had paid the contractor N11bn then when exchange rate was N109, it would have fetched us $96m. If you multiply $96m today even at official rate of N305, it is now N29bn,” he explained.

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.

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Economy

World Bank Lauds Kogi’s 2020 Financial Statement

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The World Bank has heaped praise on the Government of Kogi State concerning the state’s audited financial statement for 2020. The financial institution was said to have described the financial report as a standard to look up to concerning transparency and accountability in the public sector.

In a statement which was dated November 21, 2021 it was said that the bank made the commendation in a letter which was sent to the Accountant General of the state.

As said in the statement, the letter which was taken by the Kogi State Accountant General on November 2025 was signed by Deborah Hannah Isser, the Task Team Leader of the States Fiscal Transparency, Accountability and Sustainability Programme (SFTAS), Nigeria Country Office, Western and Central African Region.

SFTAS is a $750 million programme which has been set up to reward states for meeting any or every one of the indicators which demonstrate improvements in fiscal transparency, sustainability and accountability.

The indicators, which are nine in number were a byproduct of the former Fiscal Sustainability Plan of the federal government where States would be rewarded for meeting up to 22 targets.

The World Bank had previously backed the federal government to give incentives to the states in order to properly execute the 22-point Fiscal Sustainability Plan, which has now gone under a revamp as the nine Disbursement Linked Indicators under SFTAS.

Some of the criteria on which judgement will be based on are: improvement in financial reporting and budget reliability, improved cash management, increased openness, citizen participation in the budget process, reduced revenue leakages through the execution of State Treasury Single Account (TSA), a strengthened Internally Generated Revenue (IGR) collection, biometric registration and Bank Verification Number (BVN) used to reduce payroll fraud.

The World Bank commended the Kogi State government for preparing its audited financial statements in line with the basis of the International Public Sector Accounting Standards.

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Nigeria’s Rigid Forex Policy Discouraging Investors, Fueling Inflation – World Bank

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The World Bank has blamed the Central Bank of Nigeria’s rigid forex policy for the drop in Nigeria’s capital importation and rising inflation rate.

The bank disclosed in its November report, Nigeria Development Update.

Explaining modalities for its position, the World Bank stated that there had been constant pressure on the Nigerian Naira with the current forex policy, forcing the central bank to consistently increase its nominal official exchange rate in an effort to ease some of the pressure.

This, it blamed on the rigid foreign exchange management system of the Central Bank of Nigeria, saying the system has also been responsible for the rising inflation rate in Nigeria.

The report read in part, “The government’s exchange rate management policies continue to discourage investment and fuel inflation. Exchange rate stability is a key CBN policy objective, and to preserve its external reserves the CBN continues to manage FX demand and limit the supply of FX to the market.

“Pressure on the naira remains intense, and while the CBN has raised the nominal official exchange rate three times since the start of the pandemic (by 15 per cent in March 2020, five per cent in August 2020, and seven per cent in May 2021), FX management remains too rigid to respond to external shocks. Meanwhile, exchange-rate management has emerged as one of the key drivers of inflation.”

The World Bank further stated that the central bank foreign exchange system needs to be more flexible to withstand external shocks, especially given Nigeria’s mono-product nature. It added that the NAFEX rate does not reflect the true market rate but the central bank managed rate.

It read in part, “While the CBN supplied an average of $2.5bn to the Investors and Exporters forex window in the months just prior to the COVID-19 crisis, it only supplied an average of $0.5bn in the months thereafter.

“The NAFEX rate, which is now the guiding exchange rate for the economy, continues to be managed and is not fully reflective of market conditions. The parallel market premium over the NAFEX rate reached 29 per cent in August 2021 after the CBN cut off its weekly supply of $20,000 per bureau de change. The CBN has intermittently supplied forex to BDCs since 2005, providing ample opportunities for currency round-tripping.”

The institution however advised that Nigeria adopt a more predictable, transparent and flexible foreign exchange management system in order to attract and sustain private investment flows.

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Nigeria’s Non-oil Revenue Now N1.15 Trillion – Minister of Finance

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Mrs. Zainab Ahmed, the Minister of Finance, Budget and National Planning, has said that Nigeria’s non-oil revenue is now N1.15 trillion, representing 15.7 percent above the country’s target. This, she claimed, was a result of the federal government’s efforts at diversifying the nation’s economy.

Mrs. Ahmed disclosed this at the Institute of Directors (IoD) 2021 Annual Directors Conference which was held on Wednesday in Abuja.

According to the News Agency of Nigeria (NAN) the event with the theme: “Creating the Future: Deepening the Corporate Governance Practice through Multi-Sectoral and Multi-Generational Collaborations,” was meant to discuss economic development.

Mrs Ahmed added that the recent development was in line with President’s commitment to further diversifying the Nigerian economy which is heavily dependent on oil. She observed that Nigeria was showing resilience in recovery from recession from coronavirus (COVID-19) pandemic which intensely affected global economies.

The minister said the federal government alongside the private sector had implemented a wide range of monetary measures to stimulate economic recovery, growth and development, job creation and improved standards of living.

She also explained that the government was doing everything to improve and diversify Nigeria’s revenue generation.

Nigeria was quickly able to exit recession and is on her way to path of sustainable growth and we are intensifying efforts to grow and diversify our revenue sources to grow revenue from the current 8 per cent.”

“Our non-oil revenues have grown to N1.15 trillion, representing 15.7 per cent above set target. We are working on the 2021 finance bill and it’s nearing completion. Also, the recent approval of the medium-term national development plan is an important milestone of Buhari’s commitment to delivering sustainable growth and we require strong support and monitoring during implementation,” she said.

Mrs Ahmed reinforced the government’s decision to do something about infrastructure and reduce the cost of production for businesses in the country.

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