Economy
Experts Canvass Better Attention to Taxes, Untapped Minerals, others
By Gom Mirian, Abuja
Experts in the research and development sectors have called on the incoming administration to focus on the growth-enhancing sectors in the country rather than relying solely on revenues from crude oil to develop the economy.
The call was made in Abuja at a one-day Leadership and Development Policy Dialogue Series (LDPDS)organized by the African Centre for Leadership, Strategy and Development (Centre LSD)tagged: “Nigerian Debt Profile: Issues, implications, Lessons and Solutions for the Next Administration.
” yesterday.Director portfolio management department of the Debt Management Office (DMO), Mr Oladele Afolabi said there were a lot of linkages and shortfalls in the payment of taxes, especially by companies which is the reflection of the low revenue received in the country.
While urging the next administration to ensure blockage of these linkages, tasked the government to explore untapped mineral resources in the country to generate more revenue since the revenue obtained from crude oil is incapable of developing the economy.
Speaking at the dialogue, a professor of Economics at the University of Abuja, Isa Muhammad said Nigeria spends N97 of every N100 earned or produced on debt service.
According to professor Muhammad, the Nigerian debt service to income ratio has drastically increased from 17% to 97% in ten years (2012-2021).
He said the increase is extremely high compared to the World Bank’s recommended limit of no more than 22.5%.
He said: “In 2022, a deficit of N6. 26 trillion is anticipated as a result of all fiscal activities.
“Debt payment is anticipated to cost N3.61 trillion, with N292.71 billion coming from sinking funds to pay off maturing bonds.
“This is an alarming instance of revenue challenge that, if not handled properly, could result in a problem with the sustainability of debt”, he said.
Professor Muhammad called on the next administration to strengthen government finances, lower the fiscal deficit over time, and adopt revenue and expenditure reform steps in the medium term.
He also called on the next administration to move away from budget deficits as income collections increase.
Earlier in his remarks, the Executive Director of the Centre LSD, Mr Monday Osasah, said dialogue became imperative following the Federal Government (FG), the outcry that Nigeria’s debt sustainability has become threatened owing to the rise in its revenue shortfalls.
He said: “This revenue, unfortunately, is not matched by the high debt servicing burden of the country. According to the Minister of Finance, Nigeria is expected to spend 60% of its total revenue on debt servicing in 2023.
Also, the Head of the National Bureau of Statistics(NBS), Dr Anthony Ayo urged the next administration to step down on the ‘debt-to-GDP ratio as a method of measuring debt sustainability but rather than adopt the ‘revenue-to-GDP approach to achieve effective results.
Mr Osasah said these assertions portend a grave threat to the Nigerian economy, as this depletes the resources available for other national developmental priorities.
He said the dialogue, therefore, presents an opportunity for stakeholders to have a shared understanding of the issues, implications, lessons, and solutions, as well as make recommendations for the next Administration.
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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