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Dogara Intervenes in Delayed $100m World Bank Project

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  • Dogara Intervenes in Delayed $100m World Bank Project

The Speaker of the House of Representatives, Mr Yakubu Dogara, has directed the Chairman, House Committee on Rules and Business Edward Pwajok, to find out what has become of the ad hoc committee investigating the Growth and Employment Project.

The project, according to the Speaker, has not been fully implemented since 2013.

Also to join Pwajok in finding out what happened to the project is the acting Clerk of the House, Mr Patrick Giwa.

The Speaker’s directive was sequel to a Motion of Privilege at Tuesday’s plenary by Mark Terseer Gbillah, a Peoples Democratic Party Representative from Benue State.

Gbillah raised concerns over the inability of the joint committee to deliver on its mandate.

Some lawmakers had, on Monday, in media reports raised the alarm over the alleged plans by the Minister of Finance and Ministry of Industry, Trade and Investment to return the unspent $100m to the World Bank.

According to the report, the Minister of Industry, Trade and Investment, Emeka Enelamah, is to return the money meant for the GEM project, following the failure to implement it since 2013.

Coming under matters of privilege, Gbillah submitted that his privilege was breached by the report carried by some newspapers considering the fact that he was the sponsor of the motion that led to the constitution of the ad hoc committee.

He reminded the Speaker that according to the House standing rules, any committee that fails to conclude on referral after six months must be relieved of the referral which should be reassigned to another committee.

“It is hoped that the provision of the House rules will be upheld in the light of the impending return of the fund to the World Bank in March 2019,” he said.

While ruling on the matter, Dogara directed the clerk and chairman of Rules and Business committee to look into the matter and advise the House on the next move.

The News Agency of Nigeria reported that the GEM was an employment project financed by the World Bank and the UK Department For International Development, with an initial loan of $160m from the World Bank and 890m pounds grant from Britain.

The GEM project, which was approved by the National Assembly in 2013, was to run for a period of five years from 2013 to 2018 and 4,000 Small, Medium Enterprises were to benefit from it, but the Ministry of Industry, Trade and Investment made attempts to convert it to a Small and Medium Enterprises Fund, where only 25 companies would benefit from it.

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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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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