Economy
FG Secures $750m World Bank Loan to Finance State Programs
By Tony Obiechina, Abuja
The Federal Government has obtained a $750 million World Bank credit facility to finance the Fiscal Transparency, Accountability and sustainability programmes of 36 states of the Federation.
The Minister of Finance, Budget and National Planning, Dr Zainab Ahmed who disclosed this on Tuesday, said that $700 million of the money would be to support the states through the provision of performance-based grants.
She explained that the balance of $50 million is for the financing of technical assistance to enable the States to achieve specified Disbursement Linked Indicators (DLIs) towards qualification for the grants.
She further explained that the DLIs are derived from the already established 22-Point Fiscal Sustainability Plan (FSP) by the Federal Government and the Open Government Partnership (OGP) commitments.
The Minister made these remarks while formally inaugurating the National Steering Committee for the States Fiscal, Transparency, Accountability and Sustainability (SFTAS) Programme-for-Results in Abuja.
According to her, the Programme was introduced in 2017 by the Federal Government in collaboration with the World Bank to strengthen Fiscal Transparency, Accountability and Sustainability in the Nigerian States.
“The DLIs are derived from the already established 22-Point Fiscal Sustainability Plan (FSP) by the Federal Government and the Open Government Partnership (OGP) commitments.
“This is aimed at strengthening the desired fiscal reforms at the sub-national level and participation in the Programme is open to all States of the Federation, including the Federal Capital Territory (FCT)”, Ahmed noted.
Stressing the importance of the programme to the Government, the minister enjoined all the stakeholders involved to be fully committed to ensure its success.
She said, “It is gratifying to note that the implementation of the Programme has commenced in earnest with a fully-functional Programme Coordination Unit (PCU) domiciled in the Home Finance Department, Federal Ministry of Finance, Budget and National Planning.
“This underscores the need for the National Steering Committee to be brought on board in order to support the PCU to accelerate the pace of Programme implementation.
“As you are aware, the National Steering Committee (NSC) is expected to give strategic direction to the PCU and ensure the smooth implementation of the Programme. I commend the commitment demonstrated so far by the World Bank team, the PCU, the implementing Agencies and Partners”.
According to the Minister, the key roles and responsibilities of the Committee include, to review the progress in the implementation of the Programme; the status of disbursements to States; the status of PCU’s monitoring and evaluation, communication and outreach activities, including the publication of the Annual Performance Assessment (APA) results.
Others are, to review the status of delivery of the capacity building programme across the States by implementing agencies and partners; to provide strategic guidance for the Programme; and any other activities that would facilitate the implementation of the programme.
Speaking earlier, the Permanent Secretary (Special Duties), in the Ministry, Mr Aliyu Ahmed, noted that the National Steering Committee (NSC) occupies a strategic position in the governance structure of the SFTAS Programme.
According to him, the Committee is the highest decision making body of the Programme, “hence its membership is being drawn from critical stakeholder institutions of the Federal and State Governments.”
He explained that the SFTAS Programme is an upgraded Government initiative towards enhancing public financial Management by promoting fiscal discipline at sub-national level, adding that its aim is to strengthen fiscal transparency, accountability and sustainability in the 36 States of the Federation and the Federal Capital Territory”.
Members of the Committee include, Permanent Secretary, Finance, Federal Ministry of Finance, Chairman; Auditor-General of the Federation; Director-General, National Bureau of Statistics (NBS); Director-General, Debt Management Office (DMO); Executive Secretary, Joint Tax Board; Administrator/CEO, Public Service Institute of Nigeria (PSIN); Director-General, Nigeria Governors’ Forum (NGF) and
Director, International Economic Relations Department (IERD), Federal Ministry of Finance, Budget and National Planning.
Others included: Six State Commissioners of Finance (representing the six geopolitical zones); Director, Statistics Department of the Central Bank of
Nigeria; National Programme Coordinator, Open Government Partnership (OGP) Secretariat, Federal Ministry of Justice; and
Director, Home Finance/National Programme Coordinator as Member/Secretary.
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)