- Nigeria’s Revenue to GDP is Low says IMF
The International Monetary Fund has said Nigeria’s revenue to GDP is low and poses a threat to the nation’s economic productivity, especially with the rising national debt.
Mr Amine Mati, a Senior Resident Representative and Mission Chief for Nigeria, IMF, disclosed this at the public presentation of the ‘Fall 2019 issue of the regional economic outlook for sub-Saharan Africa,’ in Lagos on Wednesday.
He said Nigeria’s debt to GDP ratio has increased in recent time from about 20 percent to 28 percent but still remain low when compared with other African nations.
He, however, said the nation’s weak revenue generation remains an issue and urged the government to up revenue generation by creating more jobs and revamping fiscal consolidation.
Mati said, “Nigeria’s debt has increased but the level is way below the average for the region. Even if we include the CBN overdraft and others, we are talking about debt to GDP ratio that does not go beyond 27 to 28 per cent to GDP and that is including AMCON overdrafts and others.”
Speaking on fiscal consolidation, he said, “For resource intensive countries and the non-resource intensive countries, one thing that is common is that when there is trade shock, they have to react. So, you lose revenues, debt goes up.
“In most countries, you would see debt is about 50 per cent to GDP and has increased since 2016 in all cases. But what is new is that most of the countries are back on a sustainable path and have plans to reduce debt through fiscal consolidation and they seem to have stabilised.”
“The growth in per capita to the GDP since 2016 has been sustained for the 12 group of countries and has stayed sluggish for the group of countries because they have to be dealing with trade shock and how they respond to the shock has also affected what is their path.”
Mr Bismarck Rewane, the Managing Director, Financial Derivatives Company and a member of the President’s Economic Advisory Council, explained that “We don’t have a debt crisis; we have a revenue problem but there are also other problems such as poverty, productivity. So, it is not as if we have a debt or revenue problem. Also, what we use our revenue for is also important.
“The government expenditure and the government investment multiplier is much lower than the private sector multiplier and the difference between the flow of wealth and the stock of wealth is a different story.”
FG Says Nigeria’s Rice Production Rises by 1.2mmt in Three years
FG Interventions Boost Rice Production by 1.2mmt in Three Years
The Federal Government has said the nation’s rice production increased by 1.2 million metric tonnes within three years due to its interventions in the rice value chain.
This was disclosed by Mustapha Shehuri, Minister of State for Agriculture and Rural Development, in Omor and Umerum at Ayamelum Local Government, Anambra State while assessing the Federal Government rice farms/mills project there.
He added that the federal government is working on revitalising its rice farm in Anambra to boost rice production, increase new jobs and improve the standard of the people in the state and Nigeria at large.
The minister was quoted as saying, “The present administration has provided various interventions to promote investment in the rice sector.
“As a result of these interventions, the country has increased its production from 4.8 million metric tonnes of milled rice in 2015 to over six million metric tonnes by 2019 with huge reduction in the nation’s deficit.”
He added that President Muhammadu Buhari administration is pursuing and implementing programmes to achieve self-sufficiency in rice production because of its strategic importance as a major staple food crop.
Lagos State Declares N89bn Surplus in 2019 After BudgIT False Report
Lagos State Economically and Financial Stable, Declared N89bn Surplus in 2019
Lagos State, Nigeria’s commercial capital, has declared an impressive N89 billion surplus for the year ended 2019.
This was disclosed in the state’s 2019 Audited Financial Statements.
The report was released following BudgIT, a public sector-focused financial information house, recent report titled ‘Ability of States to Meet Monthly Recurrent Expenditure and Loan Repayment Obligations, 2019’, that claimed the state was among states that can not meet monthly recurrent expenditure and loan repayment obligations.
A report, BudgIT later withdrew and apologised for misleading the public as several factors were not taken into consideration during the report. It added that Lagos was financially buoyant, and the only state with such financial capacity to function without federal allocations.
On Monday, Dr Rabiu Olowo, Lagos State Commissioner for Finance, in a statement to media houses, said the state was economically and financially buoyant.
In the statement titled ‘Lagos financially, economically stable’ said the commissioner said the state is presently doing 103 percent of the budget targets despite COVID-19, this he said is well above 2019 figures.
Buhari to Inaugurate Nigeria’s First Standard Gauge Train in Itakpe-Warri Today
Nigeria’s First Standard Gauge Train to Be Inaugurated Today
President Muhammadu Buhari will be in Itapke-Warri today, September 29, 2020 to inaugurate Nigeria’s first standard gauge train, the Itakpe-Ajaokuta-Warri rail line.
Fidet Okhiria, the Managing Director, Nigerian Railway Corporation disclosed this on Sunday.
Okhiria explained that President Buhari will conduct the inauguration virtually and not be physically present at the event.
He, however, said Mr. Rotimi Amaechi, the Minister of Transportation, would lead other members of the Federal Executive Council as well as other government functionaries to the event.
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