Economy
Bayelsa Govt Worries Over Decline In Oil Revenue
Bayelsa State Government has expressed concern over the decline in revenue from the Federation Account arising from the global COVID-19 crisis, saying the economy of states in the country would soon be grounded.
The Technical Adviser on Finance to the Governor, Mr. Maxwell Ebibai, raised the alarm on Wednesday, during the state’s monthly transparency briefing in Yenagoa, which was the first under the administration of Governor Douye Diri.
The Acting Chief Press Secretary to the Governor, Mr.
Daniel Alabrah, quoted the Technical Adviser on Finance as noting that the COVID-19 challenge poses a great threat not only to the health of citizens but also to the global economy.Ebibai, who lamented that the Nigerian economy was largely dependent on proceeds from crude oil, said the development portend a grave danger the country’s economy.
He said according to the projections for the year 2020 based on the COVID-19 challenge, if the benchmark for oil remained at US$30 per barrel, the federal government would receive about N1.5 trillion as against N3 trillion it received in 2019.
According to Ebibai, the average sale of crude oil for February was $22 per barrel, stressing that the state government would put in place measures to cushion revenue shortfall to be able to meet its statutory obligations.
Consequently, he said the state government would embark on an aggressive taxation drive and also collaborate with the federal government and multinational agencies to fund its expenditure.
Ebibai solicited the support and cooperation of the people and corporate organisations in the state to enable government shore up its internally generated revenue.
Presenting the income and expenditure profile for the month of February 2020, Ebibai said on inflows, the state received N13.4 billion from the federation account.
He said the figure comprised statutory allocation of N2.8 billion, derivation N9.4 billion, Value Added Tax N939 million among other components.
Ebibai also announced N1.68 billion as total deductions from the federation account, which include foreign loans of about N37 billion, restructured loans and refund on 13% indices on derivation to other states N128.4 million, salary bailout to local government N16.3 million, non-oil revenue of N101.6 million among others.
According to him, net funds from the federal government after deductions stood at N11.7 billion while internally generated revenue for February stood at N848.9 million among other receipts.
On expenditure, Ebibai said total payments for the month of February amounted to N7.7 billion, including bank loans and guarantees N1.7 billion, salary for civil servants N3.8 billion while that of political appointees gulped N21.9 million, gratuity to pensioners N200 million leaving the state with a balance of N9.9 billion.
He said the state government spent N3.2 billion as recurrent expenditure while capital expenditure was N4.3 billion leaving a balance of N2.4 billion
The Technical Adviser explained that the state recorded a deficit balance of N2.38 billion brought forward from the month of January 2020, adding that the total balance as at the end of February 2020 was N105.6 million.
In his remarks, the Permanent Secretary, Ministry of Information and Orientation, Chief Freston Akpor, described the transparency briefing initiative as a worthy legacy of the previous government, which needed to be sustained in accordance with the Transparency Law of 2012.
He enjoined media practitioners to support the efforts of the Government.
Economy
Value Addition is new Standard in Mining Operations – Alake
The Minister of Solid Minerals Development, Dr Dele Alake has declared value addition as the new indispensable standard for mining operations in the country.
Alake made the declaration in a statement issued by his Special Assistant on Media, Mr Segun Tomori, on Tuesday in Abuja.
The minister had earlier said that the federal government had resolved to ensure compliance to value addition before permitting investors to operate.
He said that his seven-point agenda for the ministry had placed the mining sector on the global front burner since assuming office, which had generated renewed interest from the international community in Nigeria`s mineral resources.
According to the statement, the minister lauded a mining company, African Natural Resources and Mines Ltd.
(ANRML), during an inspection tour in Kaduna State, for its 600 million dollar facility dedicated to the mining and processing of magnetite iron-ore.He described the move as in line with the government`s resolve for value addition, which is especially apt given President Bola Tinubu`s quest to develop the solid minerals, to boost Nigeria`s economic profile and to meet the global upsurge in energy transition.
“The company aligns with our vision of value addition and beneficiation through its processing of iron-ore, and I urge other mining companies to take a cue from them, “ he said.
He reiterated the government`s commitment to abstain from granting mining licenses to companies that lack the necessary plans for value addition.
The minister acknowledged that resilience, courage and laying a solid foundation were critical in contributing to the company success.
He added that such factors also serve as guidelines for President Tinubu`s administration in its efforts for economic transformation.
“ We have set our minds in this administration and invariably in Nigeria to achieve success, that is why Mr President is restructuring the economy.
“When this company (ANRML) started seven years ago, we saw one of the foundations through the video documentary, the amount of concrete that went in to erect a foundation, just to carry a giant edifice.
“That is what we are going through. When we get through the gestation period, the results will manifest, and it will herald prosperity, “he said.
The minister had stated that no license would be granted to companies wishing to enter the mineral sector without presenting a plan for value addition, such as processing and refining which has multiplier effect on the economy. (NAN)
Economy
Life Insurance Records 95% Net Claims in Q4 2023-NAICOM
The National Insurance Commission (NAICOM) says Life insurance business recorded about 95 per cent net claims of the total claims in the fourth quarter of 2023.
A report by NAICOM in Abuja on Tuesday hinted that the record was due to the direct reflection of the ongoing regulatory measures by the Commission regarding claims settlements.
NAICOM said the insurance market average stood at about 71.
4 per cent of the N536. 5 billion gross claims reported at the close of the fourth quarter.The Commission said the market also recorded retention of about 87.7 per cent for the life business, 54 per cent for non-life while the aggregate market average retention stood at 66.
7 per cent for the period.It showed that the insurance industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter.
According to NAICOM, the insurance market recorded a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.
”Major growth drivers in the non-life segment of the market were oil and gas and fire Insurances contributing 27.3 per cent and 24.1 per cent respectively.
”In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding premium continues to decline.
”The premium posted 1.6 per cent as outstanding of all the premiums generated in the market during the period.
”Statistics also shows that the market recorded total assets of about N2.67trillion and capitalisation of N851billion in 2023,” NAICOM said. (NAN)
Economy
No Mining License without Mineral Value Addition Plans-Alake Warns
The Minister of Solid Minerals Development, Dr Dele Alake has warned that no mining license would be issued to prospective investors without requisite plans for value addition on minerals.
Alake gave the warning in a statement by his Special Assistant on Media, Segun Tomori on Tuesday.
He said the Federal Government had resolved to ensure compliance before permitting investors to operate.
He said that his Seven -Point Agenda for the ministry had placed the mining sector on global front burner since assuming office, which had generated renewed interest from the international community in Nigeria’s mineral resources.
He said the support of the executive and the legislature had enabled the ministry to showcase the solid minerals sector globally, resulting in his election as the Chairman of the Africa Minerals Strategy Group (AMSG) at the Future Minerals Forum in Riyadh, Saudi Arabia.
According to him, with the pact that led to the formation of the AMSG, there is now unity of purpose on the African continent regarding the issue of local value addition.
“We are no longer going to allow anybody or license any company that wants to go into the mineral sector without giving us a plan for local value addition, like processing, refining and this has a multiplier effect on the economy.
“It instantly generates employment rather than a few people carting away lithium, gold, and the likes to other countries to sell.
“These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced, ” he said.
Reports says that the minister had earlier received members of the House Committee on Solid Minerals who were on oversight visit to his office.
The minister commended the lawmakers for their support in repositioning the mining sector, stressing that boosting the economic profile of Nigeria required joint task by both the executive and legislature.
He acknowledged the significant contribution of sub-nationals to mining development, emphasising that state chairmen of Mineral Resources and Environmental Management Committee (MIREMCO) and five committee members were nominated by state governments. (NAN)