Economy

FG: Green Bond Will Deepen Capital Market, Tackle Poverty

Published

8 years ago

February 24, 2017

FG: Green Bond Will Deepen Capital Market, Tackle Poverty

The acting President of Nigeria, Prof. Yemi Osinbajo, yesterday said proposed N20 billion Green Bond to be issued by the federal government would provide an opportunity to further deepen the nation’s capital market and tackle poverty.

Green bonds enable capital-raising and investment for new and existing projects with environmental benefits. The federal government is to raise N20 billion via the issuance of Green Bond initiative.

Speaking at the Green Bonds Capital Market & Investors Conference organised by the Federal Ministry of the Environment, Federal Ministry of Finance and the Debt Management Office (DMO) at the Nigerian Stock Exchange (NSE) in Lagos, Osinbajo said the bond would support the federal government’s shift to non-oil base assets for project financing for economic growth and development.

According to him, the proceeds of the bond would be used for environmental projects such as renewable energy micro-utilities in three communities estimated at N10 billion and would provide an average of 33KW of power through solar technology.

He noted that the environment finance was very important for environmental projects, noting that the Green bond would address climate change and environmental projects to ensure sustainable development.

He explained that under the Green Bonds initiative, the federal government would raise the sum of N20 billion under the first tranche before the end of the first quarter of 2017.

Osinbajo, who described the initiative as a new addition to the market funding portfolio, added that the proceeds would be used by Nigeria to fight climate change.

He said that climate change had led to increase in natural disasters thereby affecting food, water and energy supply, thereby increasing poverty level of populace.

Osinbajo said that power had poised a major challenge in the nation’s universities, stating that 37 Federal universities and seven teaching hospitals would benefit from the Energizing Education Programme (EEP).

According to him, the EEP project estimated to cost $213 million would provide a 119 mega watts of power in 37 universities using off grid solar technology.

He therefore urged Nigerians embrace the bond initiative, the first in Africa, to benefit from its higher yields.

Osinbajo commended the ministries of Finance and Environment for the foresight in putting the bonds together, expressing the optimism that the initiative would attract more private sector to the capital market.

Up Next

Nasarawa Assembly Okays N69.9 Billion 2017 Budget

Don't Miss

NDIC: Banks’ Bad Loans Stood at N1.82tn in December

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Comments

Economy

President Tinubu Approves Concrete Redesign for Abuja-Kaduna Road Amid Contract Termination

Published

1 day ago

November 7, 2024

Bassey Marshall

The Federal Government has announced plans to address the difficulties faced by road users on the Abuja-Kaduna-Zaria-Kano road with the redesign of the dual carriageway.

This announcement was made by the Minister of Works, David Umahi via a statement on Wednesday.

The Ministry revealed that the 127 kilometers project has been approved by President Bola Tinubu.

This development comes two days after the Ministry of Works announced the termination of its contract with Julius Berger for the Section I (Abuja-Kaduna) of the Abuja-Kaduna-Zaria-Kano Dual Carriageway project in FCT, Kaduna, and Kano States.

Investors King understands that the contract for the rehabilitation of the road was awarded to Messrs Julius Berger (Nig.) Plc on December 20, 2017.

The project, initially valued at N155.7 billion, with a 36-month completion period was further categorized into three sections.

However, only Section II (Kaduna-Zaria) has been completed and partially handed over.

Section III (Zaria-Kano) is partially finished while Section I remains in a severely deteriorated state.

A statement from the Ministry explained that the decision to terminate the contract with Berger was based on non-compliance with reviewed cost, scope, and terms, stoppage of work, and refusal to remobilise to site.

The ministry on Wednesday, November 6, confirmed that Section I has been redesigned and re-scoped.

The statement reads, “The President, His Excellency, Bola Ahmed Tinubu, GCFR has approved that the remaining 127 kilometres of the Rehabilitation of Abuja – Kaduna – Zaria – Kano Dual Carriageway, Section I (Abuja – Kaduna) be redesigned using continuously reinforced concrete pavement (CRCP) instead of the present asphaltic one.”

“The contract, divided into three (3) sections, was awarded to Messrs Julius Berger (Nig.) PLC on 20th December 2017 at an initial sum of N155, 748,178,425.50 billion (one hundred and fifty-five billion, seven hundred and forty-eight million, one hundred and seventy-eight thousand, four hundred and twenty-five naira, fifty kobo) with a completion period of thirty-six (36) months.”

Economy

Tax Expert Warns Tinubu: VAT, PAYE Hikes Will Deepen Hardship for Nigerians

Published

2 days ago

November 6, 2024

Yetunde Olugbenga

Company Income Tax (CIT) - Investors King

Due to Nigeria’s economic situation, tax expert Adebisi Oderinde has urged President Bola Ahmed Tinubu to halt plans to increase the VAT and Pay-As-You-Earn (PAYE) tax rates.

Oderinde, who is also the CEO of AOC-Adebisi Oderinde & Co, made the statement during the inauguration of the company’s Head Office in the Kara area of Ogun State.

He said the country’s economic conditions are challenging and particularly unfavorable for SMEs and warned that implementing tax reform could destabilize many small businesses as inflation has already eroded purchasing power in Nigeria.

With over 28 years of experience as a tax consultant, Oderinde noted that new tax reforms would likely worsen hardship across the country.

“My advice is to make hay while the sun shines, as the journey of a thousand miles begins with a single step, and slow and steady wins the race. The country is hard! As a tax practitioner, I continue to pray for our President, but he must heed the advice of elders, especially when it concerns tax reform,” he said.

“This is not the right time to reform any tax, nor to adjust rates. Nigerians’ purchasing power is very low. While some may think of VAT reform as beneficial, it would have a negative impact, especially on Lagos State. One part of the reform aims to cancel the consumption tax, which would hit Lagos hard, as the state earns more from consumption tax than any other state in the federation,” he added.

Oderinde further advised northern Nigeria not to support the proposed policy, warning it could disproportionately affect the region.

“They also want to increase PAYE, and recent data from the NBS in 2023 shows that the total IGR from the 36 states plus the FCT is about N2.4tn, with PAYE accounting for about 63%. If PAYE is raised, it will impact many states significantly. Instead of focusing on VAT, the northern states should consider that an increase in PAYE would affect them even more than VAT,” he explained.

Economy

Power Restored Hours After Lastest Grid Collapse

Published

2 days ago

November 6, 2024

Ugwoke Ogbodo

Electricity has been restored in some parts of the states that were hitherto affected by the nation’s power grid collapse.

Investors King gathered that some states including Lagos, Osun, Federal Capital Territory among others now have light.

Recall that the Transmission Company of Nigeria (TCN) had on Tuesday announced the latest National Grid collapse.

Checks by Investors King, however, revealed that the last disruption was the tenth time Nigeria would be experiencing total blackout due to grid collapse in about nine months in 2024 alone.

The situation has been raising concerns from Nigerians and other stakeholders even as others alleged that the collapse has led to inferno in people’s homes among other property destruction.

The General Manager of TCN Public Affairs, Ndidi Mbah, had assured members of the public that the grid collapse which occurred at 1:52 pm on November 5 would be speedily fixed.

The GM revealed that the grid collapse was caused by line and generator trippings, adding that efforts were on to rectify it.

Mbah had disclosed how the national grid experienced a partial disturbance due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Each time the disruption through citizens into darkness, businesses are affected as many Nigerians task the Federal Government to tackle the menace.