Nigeria’s Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed has confirmed that the Federal Government’s 2020 budget of sustaining growth and job creation was abandoned in response to the fiscal pressures arising from the COVID-19 pandemic.
Speaking at the Chartered Institute of Stockbrokers (CIS) 2021 national workshop on Thursday, she said the Federal Government would issue another Eurobond in September to finance the capital deficit.
“The year 2020 was like no other year, particularly due to the impact of the COVID-19 pandemic, our three-year consecutive growth in the GDP was stalled at the second quarter of 2020 by the harsh economic impact of the global pandemic,” she said.
However, she said the Federal Government through the Debt Management Office (DMO) raised the sum of N669 billion from the Nigerian capital market through the issuance of Sukuk Bonds between 2018 and 2020.
The theme of the national workshop was: “Leveraging the Financial Markets to Achieve Double-Digit Economic Growth for Nigeria.”
She said “This financing was used to construct and rehabilitate more than 44 roads across the six geo-political zones of our country.
“Also worthy of note is the offer for subscription of the Federal Government of Nigeria Savings Bonds of the DMO which has been executed successfully, bond issue after bond issue.
“What is pleasing to us, is that every time the DMO goes for the bond issue, the bond are several times oversubscribed.
“This shows the interest of the investing public in Nigeria putting their monies to support the Federal Government of Nigeria in bridging our infrastructure deficit gaps,’’ Ahmed said.
“The Federal Government of Nigeria also has access to the international markets with a number of Eurobonds issuance to finance capital deficit and the next round of Eurobond issuance would be sometime in September this year.
“We will be going out to the international capital market and already we have very positive indications to that regard.’’
Ahmed noted that the Federal Government recently approved the establishment of an Infraco Company, an infrastructure company, envisaged to be a world-class infrastructure development vehicle for Nigeria.
“This company will serve as a platform for seamless public-private partnership in infrastructure financing in the country, interfacing with institutions such as Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, the pension funds and other financial institutions,’’ she said.
Ahmed said the theme of the workshop was apt and pivotal to the economic agenda of this administration.
“It is a known fact that no nation of the world attains optimal infrastructure development without the efficient use of its capital market.
“I will like to appreciate the important role of the Nigerian capital market, the role that it has played over the years and it will continue to play in the infrastructure financing and capital formation of our country.
“The NCM has over the years provided access to significant long-term development projects to the government of Nigeria and also to the other tiers of government and also the private sector.
“In an attempt to achieve economic growth, the government had earlier developed the ERGP 2017 to 2020, it was a medium-term plan designed to muster growth and build a globally competitive economy.
“Through the diversification of the economy to increase investment in infrastructure, digitization of the economy, improvement in the ease of doing business, and development of human capital.”
Tanzania: African Development Fund Approves $116 Million Loan to Upgrade Southern Road Corridor
The Board of Directors of the African Development Fund on Wednesday approved a loan of around $116 million to the Tanzanian government to upgrade a 160-km Mnivata-Newala-Masasi road corridor in the southern part of the country.
The Bank’s loan represents 98.71% of the project cost; the government of Tanzania will provide the remaining 1.29% in funding.
The project will upgrade the roadway, including the 84-meter Mwiti bridge, to bituminous standard. The works also have social components, including the provision of potable water, education and medical infrastructure, the establishment of cashew nut processing units, and extension of entrepreneurial training to women and youth.
The upgrade is expected to open up rural areas in the region and enhance the Mtwara Development Corridor, which links Mtwara Port and Mbamba Bay port on Lake Nyasa. Exporters, importers, small-scale cross-border traders, farmers, transporters are all expected to benefit.
“The periodic isolation of such a significant population worsens vulnerability and undermines social inclusion. Improved road connectivity would therefore build the resilience of the people and widen livelihood opportunities within the Mtwara Development Corridor and the surrounding districts,” Bank Director General for East Africa Nnenna Nwabufo said.
Overall, the five-year project will improve mobility and accessibility for about 1.1 million people in Mtwara, Tandahimba, Newala and Masasi districts and facilitate integration with neighbouring Mozambique, Malawi and Zambia.
Currently, the districts of Tandahimba and Newala, with an estimated combined population of 509,000 people, are mostly cut off, while connection with the Mtwara port area for essential supplies is severely constrained during rainy seasons due to the state of the road.
The project will advance Tanzania’s current five-year Development Plan (2021-2026) and aligns with the Bank Group’s Country Strategy Paper (2021-2025) which emphasizes sustainable infrastructure for a competitive economy and an improved private sector business environment for job creation, as well as two High-5 strategic priorities: Integrate Africa and Improve the quality of life for the people of Africa.
At 30 June 2021, the Bank Group’s active portfolio in Tanzania comprised 22 operations (19 public and 3 private) with a total commitment of about $2.4 billion.
FirstBank Expands Its International Money Transfer Network, Reinforces its Commitment to Customer Service
In furtherance of the need to expand diaspora remittance inflow into the country, First Bank of Nigeria Limited has increased its network of International Money Transfer Operators (IMTOs), targeted at easing the accessibility of its customers to receive money from close to 100 countries across the world in a safe and secured manner. With over 750 branches across the country, customers can receive money from the nearest FirstBank branch closest to them.
Over the years, FirstBank has been in partnership with Western Union, MoneyGram, Ria, Transfast, and WorldRemit. The bank is also in partnership with other IMTOs which include Wari, Smallworld, Sendwave, Flutherwave, Funtech, Thunes and Venture Garden Group to promote remittance inflow into the country, thereby putting Nigerians and residents at an advantage in receiving money from their families, friends and loved ones across the world.
Beneficiaries can receive remittance in US dollars in any of our over 750 branches spread across the country. Customers without an existing domiciliary account can have dollar account automatically created for their remittances. You can also receive inflow directly into your account through Western Union.
In addition, FirstBank has launched its wholly owned remittance platform named First Global Transfer product to promote the international transfer of funds across its subsidiaries in sub-Saharan Africa. These subsidiaries include FBNBank DRC, FBNBank Ghana, FBNBank Gambia, FBNBank Guinea, FBNBank Sierra-Leone, FBNBank Senegal.
Reiterating the Bank’s resolve in promoting diaspora remittances, regardless of where one is across the globe, the Deputy Managing Director, Mr Gbenga Shobo said “at FirstBank, expanding our network of International Money Transfer Operators is in recognition of the significant roles diaspora remittances play in driving economic growth such as helping recipients meet basic needs, fund cash and non-cash investments, finance education, foster new businesses and debt servicing.
We are excited about these partnerships, as it is essential to ensure our customers are at an advantage to receive money from their loved ones and business associates, anywhere they are, across the world.”
FirstBank pioneered international funds transfer and remittances over 25 years ago and has been at the forefront of promoting cross border payments in the country, having started the journey with Western Union Money Transfer. The Bank’s wealth of experience and operation in over 750 locations nationwide gives it the edge in the market.
Private Sector Seeks FG’s Directive on VAT Payment
The Organised Private Sector of Nigeria (OPSN) on Sunday in Lagos called on the Federal Government to urgently make a pronouncement on the ongoing controversy over VAT payment so that businesses will know what to do.
OPSN chairman, Mr Taiwo Adeniyi, made the call at a news conference and said delays in addressing the issue could cause negative effects on businesses, most especially in the collection and remittances of VAT.
“We are aware that by Sept. 21 we get penalised if we do not pay or remit the VAT for the month of August.
“We are also aware that laws are not made in retrospect. It then means that even if those laws have been enacted, particularly the Lagos State law which came into effect in September, it will not affect the payment by businesses in the state.
“Due to our remittances, we have issues with the fact that the law for Rivers was made in August and the majority of the businesses in Lagos usually will have a relationship with the Rivers State Inland Revenue too.
“The confusion in the public space is the reason we are calling on the government to come to our aid as we want to pay.
“It is for the government at the center to make a pronouncement as to what becomes of us,’’ he said.
Adeniyi, who is also the President of, Nigeria’s Employers Consultative Association (NECA), said that the ongoing challenge had the potential to make businesses pay double VAT in view of demands by the FIRS and state governments.
He said that businesses, as the collecting agents, were practically unclear on the authority to remit to and without a clear path, this would further aggravate the pain on businesses.
“It is a popular saying that where two elephants fight, it is the grass that suffers.
“It is no longer news that Nigerian businesses have been battling with myriads of challenges, making the survival of enterprises and ease of doing business in the country among the worst in this part of the world,’’ he said.
There has been controversy over the collection of VAT after a Federal High Court ruled that it was not the duty of the Federal Government to collect the tax.
VAT is normally collected by the Federal Government since the military era and the money is shared by the three tiers of government.
Following the court ruling, however, Lagos and Rivers states passed laws that allowed them to collect VAT.
FIRS, which used to collect the VAT on behalf of the Federal Government, has challenged the court ruling at the appellate court.
OPSN comprises the Manufacturers Association of Nigeria, the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NECA, Nigeria Association of Small Scale Industries and the Nigeria Association of Small and Medium Enterprises.
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