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Nigeria to Sign Economic Pact With Italy

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Federal Government to Sign Economic Pact With Italy

The Federal Government has agreed to sign a memorandum of understanding with the government of Italy to strengthen trade and economic relations between the two countries.

Dr Nasir Sani-Gwarzo, the Permanent Secretary, Federal Ministry of Industry, Trade and Investment, made the disclosure during a courtesy visit of the Deputy Head of Mission, Italian Embassy in Nigeria, Mr Tarek Chazli.

Mrs Bola Adewale, the Director, Legal Services in the ministry, who represented Gwarzo in the meeting said the MoU between the two nations would help explore more areas for collaboration.

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

Reps Kick Against N4 Billion Bailout Proposed For Aviation, Says Grossly Inadequate

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The House of Representatives has kicked against the N4 billion bailout proposed by President Muhammadu Buhari led administration for the aviation industry following the damages done by COVID-19 to the sector.

The House Committee on Aviation on Monday said the sector needs around N50 billion to mitigate COVID-19 negative effect and described the N4 billion proposed as grossly inadequate.

Addressing journalists in Abuja, they said other nations have started providing bailouts to the aviation industry to cushion the effects of the pandemic and protect jobs.

The committee led by Nnolim Nnaji, explained that the just concluded public hearing on the amendment bills for the review of some aspects of the civil aviation Acts had brought to the fore ‘the impending crisis in the aviation industry which require urgent attention’.

Nnaji said, “As a parliament, we are going to look into these demands and, more especially, to find out why the Nigeria Customs Service would not respect the President’s Executive Order on duty exemption and other palliatives meant to lighten the burdens of the airlines.

“The multiple entries for foreign airlines is equally an important concern raised by the operators which must be looked into.

“The aviation sector requires huge capital for infrastructural development.

“The Federal Government’s N4bn bailout to the airlines and some palliatives to the agencies (not yet released) is too small. The airlines need at least N50bn bailout funds to cushion the coronavirus effect.

“We are requesting that other mechanisms should be introduced as a support to avert the collapse of the aviation sector.”

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Economy

Infrastructure: Nigeria is Behind Other Emerging Markets – Moody’s Investors Service

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Moody’s Investors Service, a global credit rating agency, has said Nigeria’s infrastructure is behind most emerging market peers and needs at least $3 trillion to bridge the over 30 years infrastructure gap.

The agency disclosed this on Sunday during its first report on Nigerian infrastructure.

According to the report, the low tax base along with weak institutions and governance frameworks are hindering investment in infrastructure.

It would be recalled that the International Monetary Fund (IMF) had blamed Nigeria’s rising debt servicing cost and weak revenue generation for the nation’s low infrastructure and other capital expenditure in the country.

The Fund, therefore, compelled Nigeria to up revenue generation through the increase of Valued Added Tax (VAT) and the introduction of cost-reflective electricity tariffs to support weak government revenue, especially at a time when oil revenue has dropped by about 50 percent.

In the report, Kunal Govindia, the Vice President and Senior Analyst at Moody’s Investors Service, was quoted as saying that Nigeria’s fast-rising population will compound the nation’s pressure if nothing is done to arrest infrastructure deficit on time.

He explained that the COVID-19 pandemic has compounded the already low government funding capacity and poor customer affordability.

Its low government funding capacity and customer affordability has been weakened further by the COVID-19 pandemic and low oil prices,” he said.

The report noted that “Financial guarantors, multilateral development banks and local institutional investors will be important in helping finance infrastructure development.

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Nigeria Begs Buyer to Pay $9 for Crude Oil in April -NNPC

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NNPC

The Nigerian National Petroleum Corporation (NNPC) said the nation begged global crude oil buyers to purchase Nigerian crude oil at $9 per barrel in April when COVID-19 plunged oil Prices.

The Group Managing Director, NNPC, Mallam Mele Kyari said on Friday while addressing energy correspondents in Abuja.

In April, Brent crude oil, against which Nigerian oil is priced, declined to a record low of $15.98 per barrel, the lowest since 1999 when Saudi Arabia and Russia engaged in a price war.

“Actually, we sold oil at $9 per barrel in April, and practically we begged people to come and take,” Kyari stated.

The Managing Director said the nation produced 2.49 million barrels per day in April, saying 3 million barrels per day is feasible.

He added that the year had been a very difficult year for the energy industry and the world economy as a whole. He said the sector fundamentals had changed.

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