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FG Saves N4.7bn Monthly Through TSA, Says Buhari

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Buhari talks tough, orders Nigerian agencies to switch to Treasury Single Account
  • FG Saves N4.7bn Monthly Through TSA, Says Buhari

President Muhammadu Buhari on Tuesday said his administration was saving about N4.7bn monthly through the full implementation of its policy on the Treasury Single Account.

He said over 20,000 bank accounts belonging to the Federal Government had so far been consolidated into one.

Buhari disclosed this while declaring open the 2017 e-Nigeria Conference organised by the National Information Technology Development Agency held at the International Conference Centre, Abuja.

The President said his administration also leveraged on Information Communication Technology to introduce the Integrated Payroll and Personnel Information System and Bank Verification Number.

He said the implementation of the IPPIS had helped to eliminate ‘ghost’ workers on the government’s payroll and was saving it over N20bn monthly.

Buhari stated, “You may recall that on assumption of office, we enforced the policy on Treasury Single Account. Today, we are all witnesses to the impact it has made on our financial management. We have so far consolidated over 20,000 accounts, resulting into about N4.7bn monthly savings.

“In addition, the policy facilitated transparency, accountability and ease of transactions and payments between government and businesses as well as government and citizens.”

He added, “Another initiative leveraging on ICT and making huge impact on the economy is the introduction of the Integrated Payroll and Personnel Information System and Bank Verification Number.

“Its implementation has helped to eliminate the menace of ghost workers thereby reducing waste in the system by saving government over N20bn monthly.”

Buhari said his presence at the opening of the conference was a demonstration of his administration’s commitment and strong belief in using ICT as a major driver of developmental governance and economic reform plans aimed at bringing about the true change he promised Nigerians.

He described ICT as strategic in driving productivity and efficiency in all sectors of the economy.

The sector, he stated, has recorded huge investments and was contributing over 10 per cent of the nation’s Gross Domestic Product.

According to him, the government is making conscious efforts to see that this contribution continues to grow in the next few years.

The President regretted that about 80 per cent of ICT hardware purchases were imported through local distributors of Original Equipment Manufacturers by Ministries, Departments and Agencies and other government establishments.

This, he noted, made it difficult for the country to benefit from the dividends of continuous procurement and consumption of ICT infrastructure and limited value retention within the country.

The President recalled that the present administration recently issued an Executive Order mandating all MDAs to give preference to locally manufactured goods and services in their procurement of IT services.

Such measures, he said, were part of the deliberate efforts at encouraging local manufacture of ICT infrastructure, creating job opportunities, providing investment opportunities as well as strengthening the nation’s currency.

He noted that ICT played a pivotal role with agencies of government such as the Corporate Affairs Commission, Federal Inland Revenue Service and the Nigeria Immigration Service, which had leaned on ICT in improving public service delivery in an efficient and transparent manner.

So far, he said 31 reforms had been completed by the council and these reforms are already making noticeable impact on the government’s economic diversification efforts.

Buhari commended NITDA’s efforts at enforcing the Federal Government’s directive on ensuring that all ICT projects in the country were cleared by it before implementation.

“These efforts will ensure that government’s ICT procurements are transparent, they are aligned with government’s IT shared vision and policy, save costs through promotion of shared services, avoid duplication, ensure compatibility of IT systems thereby improving efficiency across government and enforce the patronage of indigenous companies,” he said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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