Connect with us

Economy

FG Demands N614bn Bailout Refund From States

Published

on

Buhari and Osinbajo
  • FG Demands N614bn Bailout Refund From States

The Federal government has ordered that the N614 billion disbursed to 35 states under the National Budget Support Loan Facility, be returned due to challenges faced by the Federal government on revenue generation.

In a meeting of the National Economic Council (NEC) chaired by the Vice President, Yemi Osinbanjo, it was decided that a combined team of the Ministry of Finance and the Nigeria Governors Forum, would cooperate with the Central Bank of Nigeria (CBN) to come up with a repayment formula.

Minister of Finance, Budget and National Planning, Zainab Ahmed, revealed this on Thursday while briefing state house correspondents about the outcome of the NEC meeting.

According to the minister, each of the 35 states received N17.5 billion as bailout funds for urgent needs in the state including; payment of civil servants’ salary arrears and pension settlement of retirees, amongst others.

The Minister also said that the NEC was briefed about preparations for the 2020-2022 Medium Term Expenditure Framework/ Fiscal Strategy Paper as well as revenue generation problems faced by the government. Adding that the balance on Stabilization Fund Account and Natural Resources Development Fund as at 20th August 2019, was a total of $95,329,245.24

NEC committee on Export, headed by the Jigawa State Governor, Mr Mohammed Badaru-Abubakar while presenting the report of his committee told the NCE that execution of the Zero Oil Plan will produce $150 billion to the country’s foreign reserved.

This was revealed to journalists by the governor of Nasarawa State, Abdullai Sule who while quoting the Committee Chairman said, “The implementation of the plan is expected to yield results in three key areas; add an extra UDS150 billion to Nigeria’s foreign reserves accumulatively from non-oil exports over the next ten years, create 500,000 jobs annually, and lift 20 million Nigerians out of Poverty”.

He also disclosed other achievements of the NEC Committee on Exports including; an increase in non-oil exports from $1.17 billion in 2016 to $3.16 billion in 2018. He added that it meant that strategic sectors identified in the Zero oil plans have witnessed some growths.

“For instance, cocoa exports have risen by $79.4 million since 2017, while sesame exports have also increased by $153 million since 2016; an increase of more than 100 per cent,”  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.

Continue Reading
Comments

Economy

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

Published

on

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.

Continue Reading

Economy

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

Published

on

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.

Continue Reading

Economy

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

Published

on

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.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending