Connect with us

COVER

IMF Warns CBN against Excessive  Financing  of FG Debts 

Published

on

Share

The International Monetary Fund (IMF) has urged central banks to refrain from monetising excessive government debt.

Debt monetisation is when a government borrows money from the central bank to finance public spending instead of selling bonds to private investors or raising taxes.

The Washington-based institution, in its report titled ‘Rethinking monetary policy in a changing world’, said the ability of central banks to set monetary policy and control the economy in more volatile times is dependent on their independence.

As central banks hike interest rates and the government has to pay more for its debt, the hope is that authorities will cut back on expenditures, thereby cooling the economy and lowering inflation pressure, IMF said.

“The low interest rates and less extreme public debt levels that prevailed after the global crisis permitted central banks to ignore what were then relatively inconsequential interactions between monetary and fiscal policy,” it said.

“The period following the 2008 crisis was one of monetary dominance, that is, central banks could freely set interest rates and pursue their objectives independent of fiscal policy.

“Central banks proposed that the core problem was not rising prices, but the possibility that weak demand would lead to major deflation.

“As a result, they focused primarily on developing unconventional policy tools to allow them to provide additional stimulus.

“Central banks also felt emboldened to pursue policies that would simultaneously meet the need for further stimulus and achieve social objectives, such as hastening the green transition or promoting economic inclusion.

“During the COVID-19 crisis, circumstances changed dramatically. Government spending rose sharply in most developed economies.”

The IMF said as spending was increasing, countries were hit by supply shocks of unprecedented proportion.

The organisation said the supply shocks were largely the result of pandemic-related problems—such as supply chain disruptions.

“These added to inflation pressures. The pandemic demonstrated that monetary policy does not always control inflation on its own. Fiscal policy also plays a role,” the IMF said.

“More important, the accompanying buildup of public debt raised the possibility of fiscal dominance, in which public deficits do not respond to monetary policy.

“Whereas low debt levels and the need for stimulus allowed monetary and fiscal authorities to act in tandem following the global financial crisis, the prospect of fiscal dominance now threatens to pit them against one another.

 “Central banks would like to hike interest rates to rein in inflation, whereas governments hate higher interest expenses.

“They would prefer that central banks cooperate by monetizing their debt—that is, by purchasing government securities private investors won’t buy.

“Central banks can retain independence only if they promise not to accede to any government desires to monetize excessive debt, which would then force authorities to cut spending or increase taxes, or both—so-called fiscal consolidation.” 

The IMF added that central banks must remain well-capitalised to promote monetary dominance.

COVER

FG to Fund Key Science and Technology Projects through PPP

Published

on

Share

By Tony Obiechina, Abuja Federal Government says it will consider using private sector funds through Public Private Partnerships (PPPs) as a funding option for certain key projects in the Ministry of Innovation, Science and Technology.This was disclosed when the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Oseodion Ewalefoh, paid a courtesy visit to the Minister of Innovation, Science and Technology, Mr Uche Nnaji.

The meeting which was at the instance of the ICRC DG, sought partnership between the two government bodies to harness PPPs to advance critical projects that can boost the economic and technological growth of the nation.
Speaking during the meeting, Dr Ewalefoh said that science and technology, if properly deployed, can serve as a key driver of the economic growth and progress of Nigeria.
“Many countries around the world have used Science and Technology to drive the economic growth and prosperity of their country and people.“We are here to brainstorm with you and find ways by which we can deepen the usage of science and technology for the advancement of our country.“Over the last two decades, countries and businesses have harnessed technology and innovation for upscaling their economy and improve the efficiency in their service delivery.“That is where we want our country to go, and we believe that is the vision you are championing under the renewed hope agenda of President Bola Ahmed Tinubu.“It is, therefore, my aspiration that your ministry will partner with the ICRC to see areas where we can champion private sector funding through Public Private Partnership to develop some of the projects specific to the ministry,” he said.The DG informed the Minister that there was already a collaboration with an agency under its purview but stressed that there were other key areas where PPP could be harnessed to deliver laudable projects in the Ministry.He added that the commission has streamlined its processes to accelerate PPP project delivery and deliver important services to the Nigerian people, pointing out that some key private sector operators have already verbalised their desire to work with the Ministry in a PPP arrangement.In his remarks, the Minister expressed his excitement at the appointment of Dr Ewalefoh as the DG of ICRC, saying that the DG’s wealth of experience will revolutionise the PPP sphere in Nigeria, adding that, indeed, a square peg has been placed in a square hole.The Minister emphasised that the Ministry served as a key enabler of economic growth and has had the support of President Bola Ahmed Tinubu demonstrated through major approvals granted the Ministry.He said that the President had given approval for methanol production, saying that although the implementation process were still being finalised, foreign direct investments for the project has reached over $1.5 billion.“We want to go into beneficiation of raw materials and we have the presidential executive order number 5 to back it, such that we don’t have to export our raw materials, but process it to a level before exporting. We are looking at doing green hydrogen, too,” he said.He stressed that Nigeria could make a lot more from cassava export than it was currently making if the raw cassava was processed before export.“We believe that with ICRC, we will partner in doing things right and enabling us to forge a better outlook for most of these projects.“In methanol, we are going to involve ICRC more closely to see the way forward and how it can benefit the country better.“I am happy that you are here; coming here shows that you know what you are doing. You are taking services to those that need it,” he said.

Continue Reading

COVER

Suspected Herdsmen Attack Benue Community, Kill 15

Published

on

Share

From Attah Ede, Makurdi

Gunmen suspected to be Fulani armed militia, on Wednesday night, reportedly invaded Anyiin town in the Logo Local Government Area of Benue State.

Multiple reports indicated that no fewer than 15 persons were killed in the attack, leaving several others with varying degrees of injuries while yet to be ascertained number were missing.

The attack, which was said to have been launched at about 6:30pm by the well-armed Fulani herders, caught the community unawares as the invaders reportedly emerged from different locations shooting at everyone in sight.

The attackers, who were said to be numbering about 200, were reported to be wielding AK-47 rifles and other sophisticated weapons, operated for about three hours.

An eyewitness and community leader in Anyiin town, Chief Joseph Anawah, said the armed herders overwhelmed security operatives stationed in the town because of their large numbers.

He said it was a coordinated operation, stating that the alleged Fulani terrorists took residents of the town unawares, surrounded the town and shot sporadically.

Anawah said some of the villagers who ran for their dear lives were caught in an ambush laid by the invaders.

He listed some of the victims to include: Mr Orihundu Ati, a retired primary school supervisor and the son of a kindred head.

Also killed was a son to a Chief of Staff to a former Logo council chairman, Tordoo Suswam and a relation of a late District head of Ukemberagya, Zaki John Chembe.

Anawah listed Ukemberagya, Tswarev, Mbawar, Gov, Mbainange, and Tombo among neighbouring communities earlier displaced by the invaders and whose residents were taking refuge in Anyiin before the latest attack.

The community leaders appealed to the federal government and the Benue state government to revive an abandoned Mobile Police barracks project along Akwana-Anyiin-Wukari road to secure the lives and property in the communities.

They lamented that farmers in the affected communities could not harvest their crops because they were being killed and abducted on their farms by the armed invaders.

According to them, communities along the Benue-Taraba border are the worst hit by the marauders’ incessant attacks.”This is the second attack in one month by the Fulani terrorists. On Oct. 9, they attacked Ayilamo town, the headquarters of Tombo Council Ward and killed scores of people. As I speak, people are deserting Anyiin town for fear of the unknown”, Chief Anawah said.

Continue Reading

COVER

Nigerians Among Most Malnourished in Sub-Saharan Africa – Abbas

Published

on

Share

By Ubong Ukpong, Abuja

Speaker of the House of Representatives, Tajudeen Abbas yesterday described growing malnutrition and food insecurity as great threat to Nigeria’s economic stability and public health.

Inaugurating the Local Organizing Committee for the National Assembly summit on nutrition and food security in Abuja, the Speaker reiterated the urgent need for legislative action to restore the country’s productivity and public health.

Abbas who was represented by Deputy Speaker, Benjamin Okezie Kalu noted that Nigeria’s rate of malnutrition is among the highest in sub-Saharan Africa.

He noted that malnutrition, especially among children, stunts physical and cognitive development, impacting long-term educational and economic potential and contributing to broader societal challenges.

The Speaker assured the lawmakers’ full support for the committee’s initiatives, urging collaboration with State Houses of Assembly to create a unified approach to combating food insecurity.

He said, “The need for this National Summit on Nutrition and Food Security has never been more urgent.

“This organizing committee’s mission is to foster collaboration across ministries, engage both public and private sectors, and create a platform for lawmakers, experts, and community leaders to address the root causes of food security challenges.”

The chairman of the committee, Chike Okafor said there is malnutrition across Nigeria, particularly in the north spiking by 51 percent among children.

He described the situation as a humanitarian crisis exacerbated by recent floods in Adamawa, Maiduguri, and Jigawa, which have disrupted food supplies nationwide.

According to him, the summit will help to in the formulation of policies to tackle food insecurity.

Continue Reading

Read Our ePaper

Top Stories

NEWS56 mins ago

Police Say at Criminal Responsibility Age, Individuals must be Answerable for Their Actions

Share The Nigeria Police Force says individuals who have attained the age of criminal responsibility must be answerable for their...

Education58 mins ago

Bells Varsity Honours 91 Students with First Class at 16th Convocation

Share Bells University of Technology, Ota, Ogun,  on Saturday awarded 91 students of the institution  First Class (Honours) at its...

POLITICS1 hour ago

Lagos PDP will Find Bearing after State Congresses — Chieftain

Share A Chieftain of the People’s Democratic Party (PDP) in Lagos State, Dr Adetokunbo Pearse, says the state chapter of...

NEWS1 hour ago

Endbadgovernance protest: Suspects not in Custody of NCoS, -Says Spokesman

ShareThe Nigeria Correctional Service (NCoS) has said that  suspects arrested during the #Endbadgovernance protest in August 2024 were not remanded...

NEWS2 hours ago

FG Releases Funds for Payment of NASU, Retirees’ Entitlements

ShareThe Federal Government has released funds for payment of withheld salary of Non-Academic Staff Union of Federal Universities (NASU). Mr...

DEFENCE2 hours ago

Troops Nab Wanted Terrorist, Habu Dogo, 7 IPOB/ESN Terrorists

Share The Defence Headquarters says the Nigerian troops have in the last one week apprehended a notorious terrorist leader, Abubakar...

NEWS2 hours ago

Nigeria Needs to Construct more Dams to Control Flooding- FG Committee

Share The Director of Dams and Reservoirs Operations in the Federal Ministry of Water Resources, Ali Dala, has called for...

NEWS2 hours ago

NCC Raids Bookshops in Uyo, Seizes Pirated Books Worth N23m

Share The Nigerian Copyright Commission on Saturday raided several bookshops selling pirated books in Uyo and seized books worth N23.1...

POLITICS9 hours ago

Rivers APC Chair Proffers Solution to State Political Crisis

Share Caretaker Committee Chairman of APC in Rivers, Chief Tony Okocha, says unless Gov. Siminalayi Fubara abides by the law,...

NEWS9 hours ago

Police Neutralise 6 Hoodlums, Recover Firearms in Bauchi 

Share The Police Command in Bauchi State, says it has neutralised six hoodlums in a crackdown against criminal elements in...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc