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Economy

Adeosun: FG Committed to Infrastructure Devt, Economic Diversification

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Federation Account Allocation Committee
  • Adeosun: FG Committed to Infrastructure Devt, Economic Diversification

The Minister of Finance, Mrs. Kemi Adeosun has restated the federal government’s commitment to infrastructure development and economic diversification, saying about N200billion was invested on roads in 2016.

Speaking at the third Nigerian Stock Exchange (NSE) & Bloomberg Chief Executive Officer Roundtable in Lagos, Adeosun explained that the N200 billion, which was an increased from the N90 billion spent in 2015, was out of the N1.2 trillion earmarked for capital projects to ensure ease of doing business.

She stated that the government will continue to prioritise infrastructure development to unlock growth potential, noting that the diversification of the economy would not be achieved without a good transportation system and power supply to improve ease of doing business.

According to the minister, the country was very vast and to actualise her potential, infrastructure development was very crucial for sustainable growth and development.

“For the past two years in Nigeria, the road had been rough in economic terms but the worst times are over and we have the opportunity to grow,” she said.

Adeosun stated that Nigeria cannot rely on oil to grow, explaining that oil contributes 10 per cent of the gross domestic product (GDP) and 60 per cent of the government’s revenue.

She said: “The President Muhammadu Buhari-led administration has an ambitious but fundamentally different vision for this economy and much has been said of our over reliance on oil. We believe that Nigeria is an oil-plus economy and I repeat that the statistics of oil is 10 per cent of our economy yet representing 60 per cent of government revenue, this is why when the price of oil fell we had a double impact. We lost revenues and the government found it hard to really meet its needs.

We cannot benchmark ourselves against the Saudis because they have 30 million population and generate 10 million barrels of oil every day and with 180 million people and 2.2 million barrels, we cannot afford to be in such peer group, rather we are closer to the Indonesia which have 250 million population and 800,000 barrels a day. For every barrel produced in Nigeria, 90 people are sharing it, this shows that we cannot continue to rely on oil, rather we must use the oil revenue to generate and stimulate activity in other areas of the economy. And this is encapsulated in our Economic Recovery and Growth Plan (ERGP).”

The minister added Nigeria has the potential to be regionally dominant, noting however, that central to realising that potential are three key factors.

“These are getting best value in the redeploying of government’s resources in the focus of enabling infrastructure, partnership with the private sector in service delivery and effective revenue mobilisation,” she said.

Adeosun explained that in Nigeria, we have simply in the past adjusted to every challenge but the last two years which have been rough, has shown that there is a limit to adjustment.

“We have to go back to basics and fix what has been broken. It is those cost that make Nigerian businesses uncompetitive and we have to address them. This government is resolved to restore the role of government in the provision of public good and services, this is not just the function of the fulfillment of constitutional responsibility, it is part of setting a standard or value in the deployment of government resources and the prevention of leakages and those who say you don’t miss what you never had really need to see the impact of what we never had not because it was not rightfully ours but because it was somehow diverted,” the minister stated.

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

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

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Petrol Importation - investorsking.com

The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

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Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

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Gas-Pipeline

The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

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Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

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food storage

Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

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