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NCC Remits N51.3bn to FG in Three Months

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  • NCC Remits N51.3bn to FG in Three Months

The Nigerian Communications Commission says it remitted N51.3bn to the Consolidated Revenue Fund of the Federal Government in the first quarter of 2019.

The remittance, according to the Executive Vice-Chairman, NCC, Prof. Umar Danbatta, is in compliance with the Fiscal Responsibility Act of 2007 (FRA 2007).

The Act requires listed Ministries, Departments and Agencies to remit 80 per cent of their operating surpluses to the Consolidated Revenue Fund.

In a statement made available to our correspondent in Abuja on Monday by the Director of Public Affairs at NCC, Dr Henry Nkemadu, the payment represented operating surplus of N44bn and spectrum assignment fee of N7.3bn collected.

According to Nkemadu, both payments were due to the Federal Government as of April 30. The FRA 2007 requires such payments to be made every year after preparation of audited accounts of the concerned MDAs.

Section 17, Sub-section three of the Nigerian Communication Act (NCA, 2003) also stipulates that spectrum assignment fees generated should be remitted 100 per cent to the Federal Government.

Danbatta was quoted to have said that the regulatory commission had taken the initiative to be making payments into the CRF “as it generates revenue.”

He noted that through effective regulatory oversight by the commission, telecommunications sector had witnessed phenomenal growth since 2001, making it an enabler of economic growth and development.

The NCC boss was quoted to have said, “To date, telecoms industry has positively impacted all the sectors of the economy including banking, healthcare, commerce, transportation, agriculture, education and so on, with increased quarter-on-quarter contribution to the country’s Gross Domestic Product.

“From 2001 till date, telecoms investment has increased tremendously from $500m to over $70bn, just as the commission intensifies measures aimed at further facilitating investment growth in telecoms infrastructure to drive the economy, especially through the licensed infrastructure companies.

“We are also working with necessary stakeholders across all levels of government to address identified impediments to investment drive in the sector.”

He added, “The commission has since placed greater emphasis on broadband development as the next frontier for economic growth by driving efficiency and innovations in Nigeria.

“Consequently, through painstaking implementation of our Eight-Point Agenda with the need to facilitate broadband development topping the agenda, we have been able to increase broadband penetration to 33.13 per cent as at end of May, 2019.”

Danbatta also disclosed that as of May, there were over 173.6 million active mobile lines across mobile networks, corresponding to a tele-density of 90.98 per cent, adding that Internet subscriptions during the month stood at 122.6 million.

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.

Banking Sector

Polaris Bank Set to Unveil Second Millionaire, Other Winners in its ‘Save & Win’ Promo

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Polaris Bank is set to unveil the second set of winners in its ongoing Save & Win Millionaire promo.

At the maiden draw, which took place on February 9, 2021, Lucky Okunzuwa, a customer with the Bank’s Akpakpava branch, Benin City in Edo State, emerged as the first millionaire of the promo.

In a statement by the Bank on Monday, it noted that like the first draw, the second set of winners will be determined through electronic means, where another millionaire and 60 other Nigerians will emerge winners with N100,000 consolation prize money each.

The Bank also encouraged Nigerians to still save a minimum incremental sum of N10,000 in three consecutive deposits of the remaining promo period to qualify and be one of the eight lucky winners to emerge millionaires in the promo.

The nationwide savings promotional campaign is expected to give away N26 million in total to the Bank’s existing and new customers who emerge winners.

The nationwide savings promotional campaign is expected to give away N26 million in total to the Bank’s existing and new customers who emerge winners.

Eight millionaires will emerge altogether alongside 180 lucky customers who will be rewarded with consolation cash gifts of N100,000 per person.

Meanwhile, the month of April will witness the grand finale, leading to the emergence of 60 winners of N100,000 each across the six geopolitical zones and six more millionaires of N1 million each across the six geopolitical zones, bringing the entire draw to a total of 188 winners.

Recall that the Managing Director/CEO of Polaris Bank, Innocent C. Ike, while kicking off the campaign in November 2020, noted that “the essence of the exercise, is to give back to customers and encourage savings amongst Nigerians”.

The campaign, Ike further explained, “is a reward for traders, artisans, public servants and indeed professionals who in spite of the challenging times, are able to put aside some money as savings”.

He reiterated that in a not-so pleasant time, there is a compelling need to save – not only to win a prize – but also to plan for the rainy day.

He disclosed that “both current and new savings account customers of the Bank, are eligible to participate in the promo”.

Savings Account accessibility is simple and swift in Polaris Bank.

Prospective customers can dial 8330# on their phones to follow the prompt or simply create or reactivate their own savings account from their devices by visiting: https://accounts.polarisbanklimited.com/opening/ or any of the Bank’s branches across the country.

Winners will emerge through a transparent, electronically generated process that will be supervised by relevant regulatory institutions.

Polaris Bank is a future-determining bank committed to delivering industry-defining products and services across all sectors of the Nigerian economy.

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US, Japan National Debt Surges by $8 Trillion in the Last 12 Months, China Recovers

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Forex Weekly Outlook March 6 - 10

The coronavirus-induced recession has seen countries that were already battling a skyrocketing national debt plunge into more crisis. 

Data analyzed by Finbold indicates that the top five countries globally with the highest public debt added $9.17 trillion between March 2020 and March 2021. The United States tops with the debt growing by $4.57 trillion from $23.45 trillion to $28.0.2 trillion.

Elsewhere, Japan’s public debt has grown from $11.42 trillion to $14.64 trillion. Cumulatively, the two countries have added $7.79 trillion in debt. Interestingly, the analysis shows that China’s national debt dropped by $0.57 trillion from $8.56 trillion to $7.99 trillion among the selected leading economies.

In terms of the country’s national debt percentage growth, Germany tops with 35.02%, followed by Japan at 28.2%, and the U.S. ranks third at 19.29%. Italy’s debt grew by 10.8%, with the UK standing at 7.19%.

US debt crisis complicated by Covid-19 response

The record surge in national debt for the covered countries is mainly due to the coronavirus pandemic. The health crisis triggered the most profound economic downturn, with millions of people losing jobs and businesses temporarily or permanently closed; hence, revenues shrunk while spending soared.

Even before the pandemic, the United States was already battling a huge national debt crisis. The situation was further complicated after Congress approved several stimulus packages for relief, widening the debt. Furthermore, the low-interest rates meant that the US had to shoulder a heavier debt burden.

Similarly, Japan’s high national debt stems from the country’s response to the health crisis. The stimulus spending also put more pressure on the already dire public debt.

China’s pandemic response helps lower public debt

Despite being the virus epicenter, it was controlled swiftly, with economic activities resuming normally. There was balance between spending and revenue generation, meaning the deficit amount was low over the last 12 months.

China was also able to inject more money into the economy after becoming a key exporter of products needed to fight and curb the coronavirus pandemic. For instance, Asian nations exported a significant amount of face masks and ventilators to countries that lacked the capacity to produce their own.

Away from the pandemic response, China’s declining public debt ties down the policy. In recent years the country has become less reliant on using credit to handle economic slowdowns. Amid the pandemic, policymakers were even reluctant to over-use debt to hit growth targets.

Overall, most countries globally have enacted a massive amount of monetary and fiscal stimulus to prevent a deep and prolonged recession, in return increasing the public debt burden. However, it appears there has been little effort to balance the coronavirus response with solving the national debt crisis.

The surging national debt for countries like the US is worrying since it has since surpassed its Gross Domestic Product (GDP) of $21.59 trillion, according to the U.S. National Debt Clock. It is an indicator the country might have problems repaying the loans.

With the debt in the unstainable territory for some countries, it might generally impact the government’s ability to tackle future economic downturns.

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Finance

The Africa Digital Inclusion Facility Approves $1.3m Grants for Two Research to Enhance Women’s Digital Access to Loans and Micro-insurance

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The Africa Digital Inclusion Facility approves grants worth $1.3 million for two research efforts to enhance women’s digital access to loans and micro-insurance.

The African Development Bank has approved two grants for research that will increase African women’s access to a range of digital financial services including loans and micro-insurance.

The grants, for $1 million and $300,000 respectively, will be disbursed through the Africa Digital Financial Inclusion Facility, a blended finance vehicle supported by the Bank, to two financial technology firms, Pula Advisors Kenya Ltd., and M-KOPA Kenya Ltd.

Pula Advisors will use the $1 million for research of social, cultural and economic factors that impact women farmers’ access to micro-insurance in Kenya, Nigeria and Zambia. Research findings will inform the design and implementation of gender-centric insurance products. The project will be undertaken over a 3-year time frame.

“This grant funding will be used to leverage technology to develop innovative and responsive loan and insurance products that can spur productivity and inclusion, especially for our women smallholder farmers and traders.” said Sheila Okiro, the Bank’s Coordinator for ADFI.

The three-year project will have three phases: product development; piloting; and scaling; the outcomes are expected to benefit 360,000 farmers, 50% of them women, as well as boost farm yields by up to 30%. This will also raise incomes and enhance household and national food security.

M-KOPA will use the $300,000 grant funding for research involving 250 women and 250 men in Kenya’s Kisumu, Eldoret and Machakos counties. The company will assess the barriers to and opportunities for women’s access to digital financial services and financial literacy programmes via smartphone, and use the research insights to design a financial services app that is relevant to small-scale women traders.

The project, approved by the Bank on 9 February, 2021, will benefit women with no or limited access to financial services that run small informal businesses. Once developed, the mobile app will be used to pilot small loans to the women traders.

Both projects align with ADFI’s digital products and innovation and capacity building intervention pillars as well as its cross-cutting focus on gender inclusion, a thematic running across all its interventions.

The PULA grant approval meets African Development Bank strategic goals, including the Ten-Year Strategy, two High-5 priority areas—feed Africa and improve the quality of life for Africans— and the financial inclusion strategies of Kenya, Nigeria and Zambia.

The M-KOPA project is aligned with the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) program that seeks to increase access to finance for women.

ADFI is a pan-African initiative designed to accelerate digital financial inclusion throughout Africa, with the goal of ensuring that 332 million more Africans, 60% of them women, gain access to the formal economy. The Facility was formally launched in June 2019 at the Bank’s Annual Meetings in Malabo, Equatorial Guinea. Current ADFI partners are the French Development Agency (AFD); the French Treasury’s Ministry of Economy and Finance; The Government of Luxembourg’s Ministry of Finance; the Bill and Melinda Gates Foundation; and the African Development Bank, which also hosts the fund.

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