Economy
Economy: Minister Warns of Tough Times Ahead
By Tony Obiechina, Abuja
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed has warned that without strong economic performance in this third quarter, Nigeria’s economy may lapse into another recession in the next four years with significant adverse consequences.
The minister who spoke in Abuja on Friday, noted that “Nigeria is exposed to spikes in risk aversion in the global markets, which will further pressure in the foreign market as foreign portfolio investors exit the Nigerian market”.
Ahmed who made the disclosure during the virtual presentation of the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) however, pointed out that in response to the development affecting the supply of foreign exchange to the economy, the Central Bank adjusted the official exchange rate recently to N360 per one US dollar.
According to the minister, “the disruptions in global trade and logistics would negatively affect customs duty collections in 2020. The COVID -19 containment measures, though necessary, are inhibiting domestic economic activities, with consequential negative impact on taxation and other government revenues”.
“Its therefore, imperative to adjust the previously projected customs duty, stamp duty, Value Added Tax and Company Tax revenues”, Mrs Ahmed added.
The minister disclosed that as at the of May, 2020, Federal Government’s retained revenue was N1.48 trillion, representing 56 percent of the target.
She also disclosed that FGN’s share of oil revenue was N701 billion which represents 166%, while non oil tax revenues stood at N439.32 billion (65% of revenue target).
The minister further stated that Companies income tax and VAT stood at N213.24 billion and N68.09 billion, which represent 62% and 58% respectively, while Customs collection was N158 billion(73% of target).
She said other revenues collected amounted to N339.51 billion of which independent revenue was N80.22 billion (21%), adding that recoveries of Stamp duty collected during the period are yet to be booked in the fiscal accounts.
On the expenditure side, the Minister disclosed that N9.97 trillion was appropriated, while N3.12 trillion (representing 96.3% of the pro rate N4.16 trillion was spent.
According to her, of the expenditure, N1.25 trillion was for debt service and N1.32 trillion was for personnel cost, including pensions.
“As at end of May 2020, only N253.33 billion had been released for Capital Expenditure due to budget revision exercise”, Mrs Ahmed further disclosed
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
Arewa Youths Initiative for Energy Reforms (AYIFER), has urged Nigeria National Petroleum Corporation Limited (NNPCL) to do everything possible to bring Kaduna Refinery back into operation.
National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.
Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.
He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.
“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.
“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.
“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.
Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.
According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.
He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)
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