Economic News Update

Business & Economic News Update: Wednesday, 11th October, 2017

 

President asks N’Assembly to approve $5.5bn foreign loans

President Muhammadu Buhari has written to both chambers of the National Assembly, seeking approval for $5.5bn external borrowing to be used to finance the 2017 Appropriation Act.

In the letter dated October 4, 2017, which President of the Senate, Bukola Saraki; and Speaker of the House of Representatives, Yakubu Dogara, read in the chambers at their plenaries on Tuesday, Buhari referred the Senate to the 2017 budget, which has a deficit of N2.356tn and provision for new borrowing of N2.321tn.

Read More

‘Budget cut, incompetence limit innovation in public sector’

Budget cut, incompetence and scarcity of resources have been identified as some of the challenges mitigating effective innovation in the public sector. Stakeholders argued that while profit and cost-saving drive the private sector, the public sector creates the space where innovation can be developed thus making the private sector operate effectively.

The challenges were identified by stakeholders at a capacity building training for the Nigeria Industrial Revolution Plan (NIRP) which is organised by the United Nations Industrial Development Organisation (UNIDO) in collaboration with the Federal Ministry of Industry, Trade and Investment (FMITI) in Lagos.

Read More

FG may ask MDAs to buy local products at higher prices

The Federal Government may direct its Ministries, Departments and Agencies to purchase locally made products even at prices up to 35 per cent higher than foreign products.

This followed a proposal sent to the Federal Government by the Manufacturers Association of Nigeria asking it to establish price preferential margins recognising that Nigerian-made products could cost higher because of the peculiarities of the nation’s economy.

Read More

Osinbajo: Govt’ll remove hurdles to doing business

The Federal Government has promised to dismantle what it called institutional hurdles to further promote ease of doing business in the country. Vice President, Prof Yemi Osinbajo made the promise yesterday in Abuja at the 23rd Nigerian Economic Summit.

In tackling one of these institutional hurdles, Osinbajo assured the business community that the incidence of multiple Customs checkpoints, especially along the eastern axis will be looked into to create a conducive investment climate in the country. He said government has received several reports from concerned Nigerians “who describe the checkpoints as inimical to growth and development.”

Read More

Sell Discos to new investors, Elumelu tells FG

The Chairman, United Bank for Africa Plc and Transnational Corporation Plc, Mr. Tony Elumelu, has asked the Federal Government to take another look at the power sector by wresting ownership from incompetent private operators and sell the firms to new owners who are capable of successfully running them.

He made the call in Abuja on Tuesday at the ongoing 23rd Nigerian Economic Summit. Elumelu stated that in as much as some existing investors might not like the idea, the government could not continue to allow the electricity distribution companies to hold the nation down with inefficient power distribution.

Read More

NMRC Boss Wants Debt Capital Market Deepened

The Managing Director of the Nigeria Mortgage Refinance Company (NMRC), Prof. Charles Inyangete has called on public and private sector stakeholders to collaborate in creating a conducive policy and regulatory environment for a robust and transparent debt capital market(DCM).

He said this would help attract more domestic and international investors, increase the market’s financial depth and strengthen its capacity to provide the multi-billion-naira/dollar long-term financing required to address the country’s housing deficit.

Read More

Inflation to remain high in Nigeria next year – IMF

The International Monetary Fund has said it expects inflation in Nigeria and Angola to remain elevated at two-digit levels next year. The IMF said this would reflect the persistent effects of past inflationary shocks coming from sharp currency depreciations as well as higher electricity and fuel prices and, “in the case of Nigeria, reflecting the assumption that monetary policy will remain accommodative going forward.”

Inflation in Nigeria dropped marginally from 16.1 per cent in June to 16.05 per cent in July, the sixth consecutive decline in the rate since January 2017, according to the National Bureau of Statistics.

Read More

‘70 per cent of companies in Cross River operate without EIA’

Environmental experts have disclosed that over 70 percent of companies in Cross River State do not have Environmental Impact Assessment (EIA) plan.This position was made known recently in Calabar at a two-day workshop on Capacity Building (EIA Training) and Advocacy Against Land grabbing in Cross River by Rights Action/Friends of the Earth Nigeria (ERA) in partnership with Community Forest Watch Nigeria.

Presenting a paper on “Appraisal of EIA Forest Land Grabbing in Nigeria”, a senior lecturer at the University of Calabar, Dr. Raphael Offiong said some mining companies have abandoned lots of mining pits that would be of great danger to communities involved in the nearest future because there was no EIA plan.

Read More

IMF raises concerns over weakness in Nigerian banks

The International Monetary Fund on Tuesday expressed concerns over weaknesses in Nigerian banks and said that the situation might weigh on economic growth in the medium term. The IMF stated this in its World Economic Outlook report, which was released at its headquarters in Washington DC, United States.

In the report, the IMF maintained that the Nigerian economy would grow by 0.8 per cent this year, after emerging from recession. The Economic Counsellor and Director of Research, IMF, Maurice Obstfeld, spoke at a press briefing at the Fund’s headquarters shortly after the release of the report.

Read More

Accountants Urged to Adhere to Prudent Financial Management

President Muhammadu Buhari has described accountants as the first set of gatekeepers to ensure that transactions are conducted prudently. According to a statement, Buhari made the remark in a message to the opening of the 22nd annual general meeting of the Association of National Accountants of Nigeria (ANAN) held in Abuja recently.

The president assured that his administration would continue to drive the diversification of Nigerian economy, confronting the security challenges and dealing decisively with corruption in all aspects of government businesses.

Read More

Kachikwu, Baru meet, agree on NNPC without political interference

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu; and Group Managing Director, Nigerian National Petroleum Corporation, Dr. Maikanti Baru, met on Tuesday for the first since their disagreement broke out and agreed on one thing – a petroleum industry regulator free from the vagaries of politics.

The two industry leaders met at a breakout session at the ongoing 23rd Nigerian Economic Summit and spoke on the controversial Petroleum Industry Bill. Kachikwu said it was also important for the industry to have a minister who would not be very powerful as it was certain that no one would be a minister forever, adding that it was important that systems were built to drive the industry.

Read More

FirstBank parleys NESG on economic summit

As part of the continued commitment to drive thought leadership, policy influencing initiatives and sustainable national economic development, First Bank of Nigeria Limited has partnered the Nigerian Economic Summit Group to host the 23rd Nigerian Economic Summit (NES#23).

Themed, ‘Opportunities, Productivity & Employment: Actualizing the Economic Recovery and Growth Plan’, the summit which commenced yesterday at the Transcorp Hilton, Abuja from October will highlight the significant role of public-private sector dialogue in national transformation.

Read More

We’re using recovered looted funds to finance 2017 budget – Buhari

The Federal Government is using part of the funds recovered from those who looted the treasury to finance the 2017 budget, President Muhammadu Buhari has said. Buhari, who spoke at the 22nd Annual Conference of the Association of National Accountants of Nigeria in Abuja on Tuesday, was represented by the Accountant General of the Federation, Alhaji Idris Ahmed.

He said the government had resolved to use some of the recovered stolen funds to finance this year’s budget. Buhari said, “My administration has practically done much in delivering on its core focus of diversifying the economy. Part of the stolen funds recovered is being used by the government to finance the 2017 budget.

Read More

Comment here

Economic News Update

Business & Economic News Update: Wednesday, 11th October, 2017

 

President asks N’Assembly to approve $5.5bn foreign loans

President Muhammadu Buhari has written to both chambers of the National Assembly, seeking approval for $5.5bn external borrowing to be used to finance the 2017 Appropriation Act.

In the letter dated October 4, 2017, which President of the Senate, Bukola Saraki; and Speaker of the House of Representatives, Yakubu Dogara, read in the chambers at their plenaries on Tuesday, Buhari referred the Senate to the 2017 budget, which has a deficit of N2.356tn and provision for new borrowing of N2.321tn.

Read More

‘Budget cut, incompetence limit innovation in public sector’

Budget cut, incompetence and scarcity of resources have been identified as some of the challenges mitigating effective innovation in the public sector. Stakeholders argued that while profit and cost-saving drive the private sector, the public sector creates the space where innovation can be developed thus making the private sector operate effectively.

The challenges were identified by stakeholders at a capacity building training for the Nigeria Industrial Revolution Plan (NIRP) which is organised by the United Nations Industrial Development Organisation (UNIDO) in collaboration with the Federal Ministry of Industry, Trade and Investment (FMITI) in Lagos.

Read More

FG may ask MDAs to buy local products at higher prices

The Federal Government may direct its Ministries, Departments and Agencies to purchase locally made products even at prices up to 35 per cent higher than foreign products.

This followed a proposal sent to the Federal Government by the Manufacturers Association of Nigeria asking it to establish price preferential margins recognising that Nigerian-made products could cost higher because of the peculiarities of the nation’s economy.

Read More

Osinbajo: Govt’ll remove hurdles to doing business

The Federal Government has promised to dismantle what it called institutional hurdles to further promote ease of doing business in the country. Vice President, Prof Yemi Osinbajo made the promise yesterday in Abuja at the 23rd Nigerian Economic Summit.

In tackling one of these institutional hurdles, Osinbajo assured the business community that the incidence of multiple Customs checkpoints, especially along the eastern axis will be looked into to create a conducive investment climate in the country. He said government has received several reports from concerned Nigerians “who describe the checkpoints as inimical to growth and development.”

Read More

Sell Discos to new investors, Elumelu tells FG

The Chairman, United Bank for Africa Plc and Transnational Corporation Plc, Mr. Tony Elumelu, has asked the Federal Government to take another look at the power sector by wresting ownership from incompetent private operators and sell the firms to new owners who are capable of successfully running them.

He made the call in Abuja on Tuesday at the ongoing 23rd Nigerian Economic Summit. Elumelu stated that in as much as some existing investors might not like the idea, the government could not continue to allow the electricity distribution companies to hold the nation down with inefficient power distribution.

Read More

NMRC Boss Wants Debt Capital Market Deepened

The Managing Director of the Nigeria Mortgage Refinance Company (NMRC), Prof. Charles Inyangete has called on public and private sector stakeholders to collaborate in creating a conducive policy and regulatory environment for a robust and transparent debt capital market(DCM).

He said this would help attract more domestic and international investors, increase the market’s financial depth and strengthen its capacity to provide the multi-billion-naira/dollar long-term financing required to address the country’s housing deficit.

Read More

Inflation to remain high in Nigeria next year – IMF

The International Monetary Fund has said it expects inflation in Nigeria and Angola to remain elevated at two-digit levels next year. The IMF said this would reflect the persistent effects of past inflationary shocks coming from sharp currency depreciations as well as higher electricity and fuel prices and, “in the case of Nigeria, reflecting the assumption that monetary policy will remain accommodative going forward.”

Inflation in Nigeria dropped marginally from 16.1 per cent in June to 16.05 per cent in July, the sixth consecutive decline in the rate since January 2017, according to the National Bureau of Statistics.

Read More

‘70 per cent of companies in Cross River operate without EIA’

Environmental experts have disclosed that over 70 percent of companies in Cross River State do not have Environmental Impact Assessment (EIA) plan.This position was made known recently in Calabar at a two-day workshop on Capacity Building (EIA Training) and Advocacy Against Land grabbing in Cross River by Rights Action/Friends of the Earth Nigeria (ERA) in partnership with Community Forest Watch Nigeria.

Presenting a paper on “Appraisal of EIA Forest Land Grabbing in Nigeria”, a senior lecturer at the University of Calabar, Dr. Raphael Offiong said some mining companies have abandoned lots of mining pits that would be of great danger to communities involved in the nearest future because there was no EIA plan.

Read More

IMF raises concerns over weakness in Nigerian banks

The International Monetary Fund on Tuesday expressed concerns over weaknesses in Nigerian banks and said that the situation might weigh on economic growth in the medium term. The IMF stated this in its World Economic Outlook report, which was released at its headquarters in Washington DC, United States.

In the report, the IMF maintained that the Nigerian economy would grow by 0.8 per cent this year, after emerging from recession. The Economic Counsellor and Director of Research, IMF, Maurice Obstfeld, spoke at a press briefing at the Fund’s headquarters shortly after the release of the report.

Read More

Accountants Urged to Adhere to Prudent Financial Management

President Muhammadu Buhari has described accountants as the first set of gatekeepers to ensure that transactions are conducted prudently. According to a statement, Buhari made the remark in a message to the opening of the 22nd annual general meeting of the Association of National Accountants of Nigeria (ANAN) held in Abuja recently.

The president assured that his administration would continue to drive the diversification of Nigerian economy, confronting the security challenges and dealing decisively with corruption in all aspects of government businesses.

Read More

Kachikwu, Baru meet, agree on NNPC without political interference

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu; and Group Managing Director, Nigerian National Petroleum Corporation, Dr. Maikanti Baru, met on Tuesday for the first since their disagreement broke out and agreed on one thing – a petroleum industry regulator free from the vagaries of politics.

The two industry leaders met at a breakout session at the ongoing 23rd Nigerian Economic Summit and spoke on the controversial Petroleum Industry Bill. Kachikwu said it was also important for the industry to have a minister who would not be very powerful as it was certain that no one would be a minister forever, adding that it was important that systems were built to drive the industry.

Read More

FirstBank parleys NESG on economic summit

As part of the continued commitment to drive thought leadership, policy influencing initiatives and sustainable national economic development, First Bank of Nigeria Limited has partnered the Nigerian Economic Summit Group to host the 23rd Nigerian Economic Summit (NES#23).

Themed, ‘Opportunities, Productivity & Employment: Actualizing the Economic Recovery and Growth Plan’, the summit which commenced yesterday at the Transcorp Hilton, Abuja from October will highlight the significant role of public-private sector dialogue in national transformation.

Read More

We’re using recovered looted funds to finance 2017 budget – Buhari

The Federal Government is using part of the funds recovered from those who looted the treasury to finance the 2017 budget, President Muhammadu Buhari has said. Buhari, who spoke at the 22nd Annual Conference of the Association of National Accountants of Nigeria in Abuja on Tuesday, was represented by the Accountant General of the Federation, Alhaji Idris Ahmed.

He said the government had resolved to use some of the recovered stolen funds to finance this year’s budget. Buhari said, “My administration has practically done much in delivering on its core focus of diversifying the economy. Part of the stolen funds recovered is being used by the government to finance the 2017 budget.

Read More

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