Economy
FG Asks States To Refund N614bn Budget Support Debts
By Mathew Dadiya, Abuja
Federal Government on Thursday, asked state governments to pay back the N614 billion given as bailout support funds from 2016 to 2017 to cushion the effect of the recession.
The debt profile formed part of deliberations at the National Economic Council(NEC) meeting chaired by Vice President, Yemi Osinbajo at the Presidential Villa, Abuja.
Minister of Finance, Budget and National Planning, Mrs Zaniab Ahmed gave the indications while briefing State House correspondents on some of the resolutions of NEC.
She said that the unemployment rate risen to 20.1percent, while inflationary level dropped from 18.7percent in 2014 to 11.
08percent in 2019.The minister said, “NEC was briefed on the progress of the facility detailing how the FG has made a total of over N614 billion available to 35 States being N175 billion each
“Council agreed to constitute a team from the Nigerian Governors Forum to meet with the CBN and Ministry of Finance to finalize modalities for commencement of repayment”.
She also gave the current balances in the Excess Crude Account as at 20th August 2019 as $95,329,245.24, while the Stabilization Fund Account stood at N21, 729,976,810.66 and the Natural Resources Development Fund was pegged at N95,896,886,829.69.
On the medium term expenditure framework, the Finance, Budget and National Planning Minister informed NEC that Nigeria macroeconomic environment has stabilized in recovering gradually.
She explained that there has been eight (8) successive month of economic growth since emerging from recession, noting that the Economic Recovery and Growth Plan (ERGP), remains the basis for the Medium Term fiscal strategy.
She equally noted that macro-economic stability has been achieved with growth in end Q3 2019 at 3.01% while there has been a continued increase in Real GDP from 1.89% in Q2018 to 2.01% in 2019.
“There has been significant growth in non-oil sector to GDP which increased 90.4% in Q1 2018 to 90.9% in Q1 2019. Unemployment rate at 20.1% at Q3 2018
“There is need for more diversification to boost inclusive growth and Mr. President is strongly committed to employment generation in this second term,” she stated.
She also noted that considerable success has been recorded in containing insurgency is parts of the North East, with economic activities recovering. While recurring conflicts between farmers and herdsmen, as well as incidences of flooding has affected agricultural products.
Breaches in NNPC pipelines was observed to be still regular, partly accounting for low oil production volume in first half of the year.
Her words, “Inflation has continually declined since 2017 from 18.72% to 11.08% in July 2019. The draft 2020 – 2022 Medium Term Fiscal framework indicates that Nigeria faces significant medium term fiscal challenges especially with respect to revenue generation. Therefore there is need to improve revenue collections and expenditure management.
“There is also need to take bold decision and urgent action to achieve fiscal sustainability and macro-fiscal objectives”.
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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