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Shettima Tasks Banks on Cash Availability

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The Vice-President, Sen. Kashim Shettima has urged Nigerian Deposit Money Banks (DMBs) to ensure seamless availability of Naira notes to the banking public.

Shettima made the call on Friday in Abuja, at the 2024 Bankers ‘ Committee Retreat.

He was represented by Tope Fasua, Special Adviser on Economic Affairs, Office of the Vice-President.

He urged the committee to address some unwholesome practices by some Point of Sale (PoS) agents which impeded the availability of cash.

According to him, the scarcity of cash is constituting an impediment to financial inclusion.

“We would like to take this opportunity to appeal strongly to the committee to urgently clear up thorny issues in the sector, some of which are impeding the efforts at financial and economic inclusion.

” Nigerians complain bitterly that they are unable to access even minimal cash when most needed.

“There seems to have been some moral hazard and adverse selection problem with the involvement of street-side PoS merchants.

” Nigerians complain about high and arbitrary charges and exploitation by rogue agents, which we are sure you will be able to tackle with concerted efforts,” he said.

Shettima also said that there was a need for more initiatives towards the financing of MSMEs.

He urged them to continue to support the efforts of the Federal Government in the area of consumer credit culture.

According to Shettima, Nigerian banks have shown dominance in the West African region and beyond.

He cited the concept of new capability development as
propounded by Prof. Ricardo Haussman of the Harvard Kennedy School.

“It suggested that a country should try using technology to export capabilities that it sees as a comparative advantage.

“Banking is one sector we have excelled at over the years. It is, therefore, a valid strategy for you to consolidate upon, as you continue to
excel.

“The recent opening of Nigerian bank branches in France is a good testimony in this direction,” he said.

Shettima urged the committee to continue to be at the cutting edge of risk management, and to develop robust responses to the changing face and pace of banking and finance.

“This has greatly transmogrified in recent times, with the incursion of different types of FINTECHs, Neobanks, agency banks and other arrangements directed at improving financial inclusion.

“There are also the implications of cryptocurrency and decentralized finance on banking as we know it.

” These developments have profound effects on the retail segment of the market, and so our banks must continue to be deft and nimble even in the face of higher capital requirements,” he said.

Shettima said that the unification of the Naira exchange rates had coincided with some weakening in the currency, which in turn has spurred some behavioural
adjustments among our people.

He said, ”We see that today, Nigerians have cut back on some foreign travels, foreign education has slowed down to the extent that many foreign universities are feeling the pains.

“There is now more focus on local educational institutions, and many world-standard facilities have now debuted in Nigeria.

“The weakening of the Naira has also resulted in a spike in exports as the Marshall-Lerner principle in economics has kicked in for
Nigeria.

“The principle states that a nation is likely to see an increase in exports and gain from currency devaluation if exports are price elastic.”

According to Shettima, a weaker currency will discourage imports that are price elastic and may spur local value-addition and production.

He added, ” Whereas our main export, crude oil , is not price elastic, but our non-oil exports have delivered.

“In the first quarter of 2024 Nigeria saw a trade surplus of four billion dollars, which increased to 4.5 billion dollars in the second quarter.

“The Gross Domestic Product (GDP) growth rate of 3.46 per cent seen in the third quarter was driven largely by non-oil exports as well.

” This is a validation of the stated commitment of the government to diversify the economy. ”(NAN)

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Yuletide: Bode George Urges Tinubu to Reduce Petrol Price

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Chief Bode George, a former Deputy National Chairman of the Peoples Democratic Party (PDP), has urged President Bola Tinubu to reduce the price of petrol   to N300 per litre ,to make things easy for Nigerians during the festive season.

George, the Atona Oodua of Yorubaland, made this plea at an interactive session with newsmen on Wednesday in Lagos.

The price of Premium Motor Spirit, popularly known as petrol, is currently above N1,000 per litre.

According to the elder statesman,Nigerians  are going through hardship, the President should give an order to reduce fuel price, specifying time frame the people will enjoy such window of relief.

He said that the federal government as well as well- meaning individuals and businesses could bear the cost of such price slash , to bring happiness to all Nigerians.

The PDP leader, who noted that December and January are  special months , said that such gesture could start from the  middle of December and run through January.

“I have been thinking, as a Nigerian, what can we do because the anger and the hunger are almost equal on the streets of Nigeria.

“What am I suggesting is that Mr President should sit down with his managers and give an order that from the middle of December to the end of January, the cost of petrol will be N300 per litre.

“The government can absorb the losses in the interest of the suffering people.

“If they (government) want others to contribute, let us know how much that is going to cost and ask people to donate, to bear the cost.

“We will be sending a lot of messages of happiness across the tribes and homes.

“Everybody in Nigeria will be happy because it will positively impact on this period of the year. It is a challenge and he (Tinubu) can do it.

“We need this in this December and January to put smiles on the faces of Nigerians, ” George, a PDP Board of Trustees (BOT) life member, said.

Advising the President to take further measures to bring relief to the people, he said that the gesture would crash prices of essential commodities and services for the benefit of all .

He said that government’s efforts should be concentrated on reducing high inflation rate, unemployment, poverty and youth restlessness  in order to create a better future for Nigerians

Speaking on the recent presidential election in Ghana, George noted that Nigeria’s electoral system  needed reforms to guard against electoral frauds and manipulations.

According to him, the nation will continue to grope for development if the system fails to encourage best candidates  to emerge.

Stating that election must reflect the wishes of the people and be devoid of  religious and tribal sentiments, George said that Ghana election should be a wake up call for Nigeria.

“INEC performance must improve. The commission must make sure that the voice of the people is  heard in elections.

“Electoral offenders should be made to face the music and sent to jail. We must be very firm about due process, credibility and transparency in elections,” he said.

Urging the President to revisit resolutions in the 2014 Constitutional Conference, George said that the current constitution was not federal in principle and practice.

“We should not deceive ourselves, the constitution is a problem. It is a military constitution, it is not democratic,” he said.

George called on the National Assembly to ensure devolution of powers and electoral reforms that would do away with manual collation of election results and mandate electronic transmission of election results from polling units.

George disagreed with political watchers saying no  vacancy in  presidency in 2027.

On the dwindling strength of the former ruling party, George, who noted that all organisations had its ups and downs, said that selfish interests and disregard for  party rules remained PDP’s major challenge.

He said that PDP could bounce back and win presidential election if the leadership decided to elevate national interest above selfish interests and adhere to the party’s constitution.

“We will tell ourselves some serious old truth. We messed ourselves  up. ” he said.

Stating, however, that the PDP was not dead, George said that lack of justice, equity, fairness and the inability to adhere to the  party’s zoning and rotational principle cost the party victory in 2023.

Calling on the party’s founding fathers alive to wake up and rescue the party, George said that Nigerians were still waiting for the former ruling party to take over power and put things right. (NAN)

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Tinubu Set for Groundbreaking of Renewed Hope City in Lagos 

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President Bola Tinubu, is set to perform the  groundbreaking of 2,000 housing units of the Renewed Hope City in Ibeju Lekki, Lagos, in the next few weeks.

Mr Ahmed Dangiwa, Minister of Housing and Urban Development, announced this during an official assessment visit, on Wednesday in Lagos

Dangiwa said Lagos would represent the South-west, while the president would do that of the North-West in Kano, before doing that of the four other regions.

“Arrangements is already on ground, we have gotten sites, and work has commenced for 2000 houses in the Renewed Hope City that we intend to build in Ibeju-Lekki,” he said.

Towards achieving the set goal, the minister said the visiting team also paid a courtesy visit to Gov.

Babajide Sanwo-Olu to discuss area of collaboration between the federal and state governments.

He disclosed that the federal and Lagos state governments had agreed to set up a Tripartite committee and ensure all the issues of concerns between the parties were resolved amicably for the benefit of all.

Earlier, the Minister embarked on an assessment visit of deplorable Federal Government buildings and assets across Lagos state in a bid to commence rehabilitation on them in a few months.

Dangiwa said the rehabilitation was necessary as the deplorable buildings posed a challenge and security concerns to the Lagos state government. (NAN)

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Gov. Alia Presents N550.1bn as 2025 Budget Estimate to Benue Assembly 

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Gov. Hyacinth Alia on Wednesday presented the sum of N550.1bn as the 2025 appropriation bill to the Benue State House of Assembly for consideration and passage into law.

Alia told the lawmakers that out of the total budget size, N175.4 billion is for recurrent expenditure while the N374.

7 billion is for capital expenditure.

The governor said that the total estimate represented a 47.

5  per cent increment over the 2024 revised and approved figure of N373 billion.

He stated that the appropriation bill tagged “Budget of Human Capital Development, Food Security, and Digital Economy” was to consolidate the gains made in 2024.

Alia further explained that the proposed recurrent expenditure of N175.

4 billion was 13.55 per cent higher than the previous year.

According to him, budgeted capital expenditure of N374.7 billion represents a 71.5 per cent increment on the 2024 revised capital expenditure.

“The budget breakdown indicated that the sum of N212.2 billion, representing 38.52 per cent is for administration; N196.6 billion, representing 35.68 per cent is for the economy; law and justice will take N26.6 billion, representing 4.84 per cent while social welfare will gulp N115.5 billion, representing 20.96 per cent.

“We have the vision. We have the will. And most importantly, we have the people ready to work alongside us to turn this vision into reality.

“Together, we will build a state where every citizen has the opportunity to succeed, where food is plentiful, and where the digital economy opens new frontiers of opportunity for all,” he said.

The governor said the intention of the government was to stay within the limits of its recurring revenue to build the state without accruing unnecessary debts for generations unborn.

He, however, said that since the 2025 budget was a deficit one, it proposed a borrowing plan of a conservative sum of N26bn, representing a modest 4.7 per cent of the proposed aggregate expenditure for 2025.

“This is lower than the state’s debt-to-GDP ratio of 8.2 per cent which is within the benchmark of the 25 per cent debt sustainability threshold.

“Despite these favourable debt ratios, I want to reiterate that borrowing will only be considered as a last resort and for regenerative investment purposes,” he added.

Alia stated that the problem of Internally Displaced Persons (IDPs) remained a challenge, adding that they have reasonably improved their living conditions.

He said the Bureau of International Cooperation and Development has elicited substantial grants from donors, totalling N85bn. (NAN)

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