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FG’ll Complete All Major Road Projects — Fashola

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The Minister of Power, Works and Housing, Babatunde Fashola
  • FG’ll Complete All Major Road Projects

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said the Federal is committed to completing all major road projects across the country.

Fashola, who stated this during an inspection of road projects in Lagos State on Saturday, listed the Truck Park in Apapa, Lagos-Ibadan Expressway, Tin Can Island/Oworonshoki Expressway, Wharf Road rehabilitation, and the reconstruction of the Mosimi/Sagamu Road as some of the roads currently receiving attention in and around Lagos State.

He said that the ongoing road projects across the country would help to develop the nation’s infrastructure and improve commerce.

He said the ministry was working to fulfil President Muhammadu Buhari’s mandate to get the economy out of recession and set it on the path of inclusive growth where money would trickle down to the most vulnerable people.

Fashola also said that the Federal Government would continue to make funds available to contractors in order to ensure delivery of projects as scheduled.

The minister spoke while paying a courtesy call on the Oyo State Governor, Abiola Ajimobi, after inspecting some Federal Government road and housing projects in the state.

While stating that the Federal Government was not competing with state governments in terms of infrastructural development, Fashola noted that it was ready to collaborate with the states in the provision of infrastructure in the country.

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

Infrastructure: Nigeria is Behind Other Emerging Markets – Moody’s Investors Service

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recession

Moody’s Investors Service, a global credit rating agency, has said Nigeria’s infrastructure is behind most emerging market peers and needs at least $3 trillion to bridge the over 30 years infrastructure gap.

The agency disclosed this on Sunday during its first report on Nigerian infrastructure.

According to the report, the low tax base along with weak institutions and governance frameworks are hindering investment in infrastructure.

It would be recalled that the International Monetary Fund (IMF) had blamed Nigeria’s rising debt servicing cost and weak revenue generation for the nation’s low infrastructure and other capital expenditure in the country.

The Fund, therefore, compelled Nigeria to up revenue generation through the increase of Valued Added Tax (VAT) and the introduction of cost-reflective electricity tariffs to support weak government revenue, especially at a time when oil revenue has dropped by about 50 percent.

In the report, Kunal Govindia, the Vice President and Senior Analyst at Moody’s Investors Service, was quoted as saying that Nigeria’s fast-rising population will compound the nation’s pressure if nothing is done to arrest infrastructure deficit on time.

He explained that the COVID-19 pandemic has compounded the already low government funding capacity and poor customer affordability.

Its low government funding capacity and customer affordability has been weakened further by the COVID-19 pandemic and low oil prices,” he said.

The report noted that “Financial guarantors, multilateral development banks and local institutional investors will be important in helping finance infrastructure development.

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Economy

Nigeria Begs Buyer to Pay $9 for Crude Oil in April -NNPC

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NNPC

The Nigerian National Petroleum Corporation (NNPC) said the nation begged global crude oil buyers to purchase Nigerian crude oil at $9 per barrel in April when COVID-19 plunged oil Prices.

The Group Managing Director, NNPC, Mallam Mele Kyari said on Friday while addressing energy correspondents in Abuja.

In April, Brent crude oil, against which Nigerian oil is priced, declined to a record low of $15.98 per barrel, the lowest since 1999 when Saudi Arabia and Russia engaged in a price war.

“Actually, we sold oil at $9 per barrel in April, and practically we begged people to come and take,” Kyari stated.

The Managing Director said the nation produced 2.49 million barrels per day in April, saying 3 million barrels per day is feasible.

He added that the year had been a very difficult year for the energy industry and the world economy as a whole. He said the sector fundamentals had changed.

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Economy

Nigeria to Emerge from Recession in Q4, 2020, Finance Minister

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Zainab Ahmed Finance Minister

Nigeria’s Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has said the second economic recession in fours will be short-lived.

The minister disclosed this at the ongoing 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group

Ahmed said Nigeria would emerge from the recession this fourth quarter or by the first quarter of next year.

Africa’s largest economy plunged into recession in the third quarter after two consecutive quarters of decline. Nigeria recorded -6.10 growth in the second quarter of 2020 and another -3.62 percent growth in the third quarter.

The minister said the COVID-19 induced economic recession followed the same pattern with other global nations struggling with economic recession.

Let me remind us that before the impact of COVID-19, the Nigerian economy was experiencing sustained growth, which had been improving quarter by quarter until the second quarter of 2020, when the impact of the COVID-19 was felt,” she said.

She explained that nations like the United Kingdom and the United States are facing much deeper contraction than Nigeria.

“Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of a negative growth.

According to her, Africa’s second-largest economy, South Africa, suffered a record decline of -50 percent and the economy is expected to post negative growth in the third-quarter GDP report scheduled to be released soon.

Ahmed said, “While the economy has entered into recession in the third quarter, the trend of the growth suggests that this will be a short-lived recession, and indeed by the fourth or, at worst, the first quarter of 2021, the country will exit recession.

“Our expectation of a quick exit, which will be historically fast, is anchored on the several complementary fiscal, real sector and monetary interventions that have been proactively introduced by the government to forestall a far worse decline of the economy and alleviate the negative consequences of the pandemic.

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