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Nigeria Needs To Do More In Economy Diversification – Gov Bagudu

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Kebbi State Governor, Atiku Bagudu
Kebbi State Governor, Atiku Bagudu
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Kebbi State Governor, Atiku Bagudu has advocated heavy investment in other sectors of the nation’s economy if the much talked about diversification of the economy from oil and gas must be a reality.

Bagudu spoke Monday at a public hearing on a bill for an Act to establish the Nigerian economic diversification council organised by the Senate Committee on National Planning and Economic Affairs.

The governor, who is a former senator said Nigeria is a blessed nation in all sense of the world and “we need to support different sectors of Nigeria, we need to support different constituents of Nigeria to do better.

“We have done well in petroleum and gas not because it is the only sector, but that is where we put in the most money. Maybe we have put, on an average basis between 1990 to 2010, which have been investing about 10 billion dollars in petroleum and gas when I say we, it is both public and private sectors”.

According to him “if you measure how much has been going into agriculture, for example, in that period, maybe, it is less than 500 million dollars.”

He said it will not be surprising that the outcome will be different, adding, “may be if we take mining, whether it is gold, which every state has something to offer, again may be we have not invested as much.

For him, “diversification has restructuring is an element of that so that we support the constituent parts whether they are states or sectors so that each can contribute more than it is contributing.

“Some of the anger we have had in the land may be result from the lack of inclusion when oil production was contaminating water bodies or in the oil producing states.

“Those who hitherto used those freshwater bodies as sources of livelihood for fisheries so those water bodies were taken over by weeds. And they also got angry and they said it doesn’t matter, you can go on producing oil but what about us.

He said late President Umaru Yar’Adua recognised that we had an amnesty programme that was restraining them and similar things are happening elsewhere that if we recognise and provide legislative backing to our diversification quest, we will be able to tell the world we are serious about diversification.

“The evidence in the last seven years had some positive traction that we can build and we can do better and quicker, adding that “it’s a collective”.

“Nigeria is a trillion dollar investment destination. Nigeria, what is our federal budget, less than 35 billion dollars? Maybe the national assembly is about to pass the 2023 budget. I’m sure it won’t be up to 40 billion dollars. What is the budget of Brazil, a country that is similar to Nigeria in terms of population, about 700 billion dollars.

“So if somebody is taking care of 220 million people with 700 billion dollars, you are taking care of 200 with less than 10 per cent of that. Isn’t it a no brainer that you will not be able to achieve as much. But we have to all come together, we have to borrow more money if that is what is required or we have to support all sectors to produce more money so that we can fund all our priorities badly.

On the forthcoming election, he thinks “we have made a statement enough in Nigeria that everyone is convinced that free, fair and transparent elections always lead to more confidence in the society, less rancour in the society.

He said the value of free, fair and transparent elections is there for all to appreciate, adding “what is important is for everyone to see what more can I do to ensure that we have a free, fair and transparent election.

“Sometimes, we are all guilty in the sense that we think it’s somebody who should solve the problem.

However, he said even transparent elections do not guarantee the best outcomes, sometimes still, democracy is based on the appeal of populist leaders, leaders who are popular at a particular time.

“We should all play a role to ensure that our processes are strengthened And they are strengthened. Today INEC is enhancing the transparency of election by better accreditation, speedy accreditation, better transmission of results in good time, security agencies are helping, above all President Buhari has committed to free, fair and transparent election even in states where our party has lost elections.

“We are a blessed nation in all senses of the word and we have to support and we need to support different constituents of Nigeria”, he concluded.

Mr. Thomson Akpabio from Nigeria Employers Consultative Association (NECA) drew the attention of the committee to section 332 which stipulates 2% tax on imported textile while it imposes 10% on locally produced one thereby serving as a disincentive to local manufacturing.

The sponsor of the bill, Sabi Abdullahi (Niger North) expressed his delight that the public hearing was well attended as stakeholders made very meaningful contributions that will enrich the legislation.

 

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Business & Economy

Senate Passes MTEF/ FSP, To Probe N8.4tn Withheld Subsidy Funds By NNPCL

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Nigerian Senate
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The Senate has passed the 2024 – 2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for implementation by the Federal Government.

The passage followed the presentation of a report by the chairman of the Joint Committees on Finance and National Planning & Economic Affairs presented by Sen. Musa, Mohammed Sani (Niger East).

The senate also tasked its Committees on Finance and Petroleum as well as Gas to investigate allegations of withheld funds by the NNPC, including NGN 8.48 trillion in petrol subsidies, and $2 billion (NGN 3.6 trillion) in unpaid taxes.

The allegation was highlighted by reports from the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission.

The development comes following the Office of the Auditor-General of the Federation, saying it had received the necessary and complete documents required to verify the N2.7 trillion fuel subsidy claim by the Nigerian National Petroleum Company Limited against the government.

The Senate approved the exchange rate projection of 1,400 USD for 2025-2027 with a provision for review in early 2025, based on prevailing monetary and fiscal policies.

They also resolved that any excess on the official figure would be used for debt servicing.

During the debate on the report submitted by the Chairman Senate Committee on Appropriations, Senator Sani Musa (APC, Nigeria East ), the Lawmakers also demanded a reduction in the petrol prices against the backdrop of the commencement of the Port Harcourt Refinery.

Chairman of the Senate Committee on Appropriations, Senator Adeola Olamilekan referenced the Federal Government’s Compressed Natural Gas initiative as the underlying imperative for the adoption of the N1400 to one dollar.

According to him: “With the functioning of our refineries the demand for Forex will drop. With the CNG initiative, Nigerians will have an option for your information if you leave Benin to Lagos the amount of fuel is about 130 thousand but with CNG you can’t use more than 48 thousand Naira. Another issue to be addressed is the recurrent to-capital ratio which is very high.

The need to support the manufacturing industries was also raised by Senator Yahaya Abdullahi, of the Peoples Democratic Party, Kebbi North if the projections of the MTEF are to be achieved.

In their resolutions, the Senate also adopted inflation rate projections of 15.75, 14.21 and 10.04 per cent for 2025, 2026 and 2017 respectively.

According to the recommendations, “The 2025 Federal Government of Nigeria budget proposed spending of N47.9trilion of which N34.82 trillion is retained. New borrowings stood at N9.22tn, made up of both domestic and foreign borrowings.

Capital expenditure is projected at 16.48 trillion naira with statutory transfers standing at 4.26 trillion naira and sinking funds projected at N430.27billion.

 

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Tinubu Writes NASS, Seeks Approval For N1.77tn Fresh External Borrowing

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President Bola Ahmed Tinubu
President Bola Ahmed Tinubu
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President Bola Tinubu has written to the National Assembly, seeking approval of a fresh N1.767 trillion, the equivalent of $2.209 billion as a new external borrowing plan in the 2024 appropriation act.

If approved, the loan will be used to part-finance the deficit of N9.7tn for the 2024 budget.

The president’s request was read by the speaker during plenary on Tuesday.

The president has also forwarded the MTEF/ FSP 2025- 2027 to parliament and the National Social Investment Programme establishment amendment bill, to make the social register the primary tool for the implementation of the federal government’s social welfare programmes.

This is as the Central Bank of Nigeria recently said the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024.

Data sourced from the Central Bank of Nigeria (CBN) report on international payment statistics showed that the amount represents a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

According to the report, while the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m, the highest monthly expenditure in 2023 was $641.70m, recorded in July.

The trend in international debt servicing by the CBN highlights the rising cost of debt obligations by Nigeria.

Further breakdown of international debt figures showed that in January 2024, debt servicing costs surged by 398.89 per cent, rising to $560.52m from $112.35m in January 2023. February, however, saw a slight decline of 1.84 per cent, with payments reducing from $288.54m in 2023 to $283.22m in 2024.

March recorded a 31.04 per cent drop in payments, falling to $276.17m from $400.47m in the same period last year. April saw a significant rise of 131.77 per cent, with $215.20m paid in 2024 compared to $92.85m in 2023.

The highest debt servicing payment occurred in May 2024, when $854.37m was spent, reflecting a 286.52 per cent increase compared to $221.05m in May 2023. June, on the other hand, saw a 6.51 per cent decline, with $50.82m paid in 2024, down from $54.36m in 2023.

July 2024 recorded a 15.48 per cent reduction, with payments dropping to $542.50m from $641.70m in July 2023. In August, there was another decline of 9.69 per cent, as $279.95m was paid compared to $309.96m in 2023. However, September 2024 saw a 17.49 per cent increase, with payments rising to $515.81m from $439.06m in the same month last year.

Given rising exchange rates, the data raises concerns about the growing pressure of Nigeria’s foreign debt obligations.

The total debts of the 36 states in Nigeria rose to N11.47tn as of June 30, 2024, despite allocations by the Federal Accounts Allocation Committee (FAAC), and their respective internally generated revenues (IGR).

An analysis of data from the public debt reports released by the Debt Management Office (DMO) said the rise was 14.57 per cent higher than the N10.01tn recorded in December 2023.

External debt for the states and the Federal Capital Territory also climbed from $4.61bn to $4.89bn within the period under review.

In naira terms, the debts increased by 73.46 per cent, from N4.15tn to N7.2tn, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2024.

 

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Protests In Abuja Demanding Investigation Into Guaranty Trust Bank Operations

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Protest
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A protest was held today at the Police Force Headquarters in Abuja, organized by the Coalition of Civil Society for Good Governance in Nigeria, calling for an urgent investigation into serious allegations against Guaranty Trust Bank Limited (GTB). The bank, under the leadership of Segun Agbaje, is facing accusations of corruption, money laundering, unsolicited account openings, and more.

The Chief Convener of the coalition, Comrade Tijani Usman addressed the crowd, highlighting the pervasive issue of corruption that has plagued Nigeria’s socio-economic landscape since 1960. He emphasized the critical role of the banking sector in economic development and criticized the lack of action from regulatory and law enforcement agencies regarding GTB’s alleged infractions.

“The allegations against GTB are serious and cannot be ignored,” Usman stated. He urged the Nigeria Police Force to prioritize these claims and conduct a thorough investigation to hold accountable those responsible for any wrongdoing.

Participants in the protest voiced their concerns about recent operational failures at GTB, particularly a prolonged outage of the bank’s payment systems, which resulted in substantial losses for customers. The coalition called for the bank’s management to focus on resolving these critical issues instead of engaging in activities that undermine trust.

The protesters also appealed to the Central Bank of Nigeria and the Economic and Financial Crimes Commission to take a proactive stance in investigating the allegations and ensuring accountability within the banking sector.

As the coalition continues its peaceful demonstrations, they remain steadfast in their commitment to advocating for justice for affected customers and investors. This protest reflects a growing demand for greater transparency and accountability in Nigeria’s banking system, as civil society seeks to foster an environment where corruption is actively challenged and addressed.

The response from authorities to this protest may significantly impact the future governance of financial institutions in Nigeria, highlighting the necessity for reform and vigilance in the fight against corruption.

 

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