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As 2018 Winds UP: Nigerians Mourn Economy Under Buhari …Say 2019 Still Uncertain

Published

6 years ago

December 31, 2018

Despite the rise in the Manufacturing Purchasing Managers’ Index (PMI) at 61.1 index points for December 2018, as against 57.9 index points recorded in November, analysts say at the weekend that the outgoing year will not be forgotten in a hurry due to other negative indicators like high unemployment, dearth of credit by banks to critical sectors of the economy and high inflation in the midst of low purchasing power.
Bismarck Rewane, Chief Executive, Financial Derivatives Company’s December Lagos Business School’s publication sees 2019 as a year of “Trepidation and Growing Uncertainties,” adding that “The Nigerian economy may succumb to pressures of an oil price (down by 40%) to $53pb range and a cut in production to 1.67mbpd. The lower oil revenue and a growing deficit will erode the fiscal consolidation policies of the government.
With banking industry fragility and a naira under speculative pressure, 2019 will be a year of technological and investment opportunities but serious political and policy challenges.
The amicable settlement between Nigeria and MTN after an avoidable saga is a good way to end an eruptive year. A listing of MTN is the much needed booster shot the Nigerian stock market badly needs.”
According to the foremost economist, Nigeria’s 2019 election is being greeted with the classical reaction of an economic indifference curve, which is a combination of choices between commodity A and B which gives a consumer the same level of satisfaction or dissatisfaction.
‘Talking to a cross section of young people between the ages of 20 and 30, most respondents were unenthusiastic, indifferent and apathetic. Some considered it an Hobson’s choice. Based on this, we are anticipating voter apathy and a low turnout in the February election,’ he said.
Lagos Chamber of Commerce and Industry, Muda Yusuf, Director-General would like “foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalization of Lagos ports environment, the oil and gas sector reform, especially the petroleum industry bill; better debt management strategy to ease the burden of debt service, reduction in the cost of governance at all levels; improvements in the domestic revenue (particularly independent revenue) to reduce volatilities in government revenues,” in the new year.
President of the Nigerian Employers’ Consultative Association (NECA), Dr Mohammed Yinusa says the implementation of Nigeria’s 2018 budget, benchmarked at $60 per barrel could also suffer should the slump persist in the oil price at the international market persists.
Consequently, Yinusa says, “Nigeria’s economy which is currently stabilising on boost in crude oil price, could be adversely affected as crisis in foreign exchange, primarily sourced from the oil sector was projected to worsen.”
Yusuf believes that the non-passage of the Electoral Act and Petroleum Industry Bill (PIB), are considered as sore points for the economy and polity, adding, the “downstream sector as currently constituted is unstructured and largely uncompetitive.”
In the last quarter of this year, the globa oil industry witnessed steady decline in prices of crude oil prompting several oil producing countries especially OPEC to consider production cuts.
In fact, OPEC, Russia and other producers have agreed to remove 1.2 million barrels per day from the market beginning in January. Consequently, some observers also said price volatility in 2019 may be inevitable considering the conflicting priorities of the three top world producers, namely the US, Saudi Arabia and Russia.
The move follows a more than 30 percent drop in oil prices that saw international benchmark, the Brent crude, fall from more than $86 a barrel to a 13-month low of $57.50 last month.
Apart from the downward movement in the international prices of crude oil in the outgoing year,2018 witnessed a mixed feeling among the stakeholders in the country’s oil and gas industry.
Muda Yusuf said data from the Organisation of Petroleum Exporting Countries (OPEC) shows that oil prices are trending down at $54 p/bl on 22nd December 2018 from its peak of $88p/bl in the month of September and October 2018.
He said this is already below 2019-2021 Medium-Term Expenditure Framework (MTEF) and 2019 budget benchmark of $60p/bl. The declining global oil price will likely distort FG’s economic projections for 2019 as well as impact adversely on its MTEF if the trend is not reversed.
Consequently, Yususf said in 2018, the oil and gas industry was characterized by weak incentive regime to facilitate the penetration of the use of cooking gas in the country as well as high cost of the LG equipment as result of high import tariff. He also said the industry was characterized by the discriminatory VAT imposed on the locally sourced LPG, while imported LPG does not attract VAT.
“Petroleum subsidy debts and non-payment of interest rate and exchange rate differentials to oil marketers is affecting the ability of the oil marketers to meet up with their financial obligations with the banks. This is also having a multiplier effect on the revenue of the banks/lenders. It also has implications for the stability of the banking system and the growth of non-performing loans in the financial system,” he added.
A banker and chieftain of the Peoples Democratic Party (PDP), Dr John Ayuba says the failure of government to provide the much needed enabling environment led to the drought of Foreign Direct Investments (FDIs).
At the home front, Ayuba said the economy did not fare betther as local investors were hounded with harsh and vindictive policies.
According to him, the economy needs a leaders with business acumen and who understands and with a face of business.
Chief executive of Abuja based Muregi Associates, Dr. Husseini Mohammed in his response to inquiry titles his submission “Economic Annus Horriblis.”
As the above indicates, Commenting or writing in assessing the Economic situation of the country in 2018 is not farfetched considering a number of factors, namely, Inflation, Unemployment, Manufacturing, Private Sector Performance and indeed the overall activities of the socioeconomic indicators all proved by and large negative.
Manufacturing sector, which is the engine of economic growth in terms of Capacity utilization, was too low and generally considered unacceptable or unrealistic for any meaningful economic growth. In a way it wouldn’t be out of place to conclude that, the year 2018 is what in Latin we call “Annus Horriblis”.
On the expectations for next year, he said, “we need to be cautious because the current budget of N8.83 Trillion Naira with a production of 2.3 barrel and a benchmark of $60per barrels is already questionable by the current sport market of $53 per barrels and OPEC’S cut in our production to a mere 1.93 barrels.
For the Economy to turn around, we must look inwards in the development of Agriculture and other allied resources with a major emphasis on the small-scale industries as enablers.
Leadership is everything, election is just about a month away, therefore, whoever emerges as the president be it the current leadership or the PDP leadership will have Herculean task in managing the state of affairs of the country.”
Engineer Martin Onovo told our correspondent that the “year, just like the previous years under the current administration, didn’t witness salutary growth because the handlers of the country have no idea of how to pilot it let alone functionalize the nation’s section.
He said the development explains the lingering crisis of confidence between the Minister of State for Petroleum Resources, Ibe Kachikwu and the group managing director of the Nigerian National Petroleum Resources (NNPC),Maikanti Baru, fuel subsidy payment, corruption and all other inherent infractions which ordinarily should have fizzled out given the right leadership.”
On power situation some analysts say despite the recent claim by the country’s Power Minister, Babatunde Fashola, that the current administration has taken power situation to the next level, the Senior Staff Association of Electricity and Allied Companies(SSEAC) and critical stakeholders felt the minister played to the gallery .
National president of the Union, Comrade Chris Okonkwo told newsmen that Nigeria didn’t achieve any substantial growth in the power sector in 2018,adding that the power distribution companies had a field day by imposing estimated billings on customers, denying them prepaid meters and shunning investment in infrastructure that could boost power supply in the country.
A leader of a pressure group organization in Lagos, Comrade Chinedu Bosah corroborated Okonkwo’s position, saying the claim of improved power supply by the current government in 2018 is a mere political gimmick
Consequently, President of the Nigerian Employers’ Consultative Association (NECA), Dr. Yinusa, has recommended that government should see to a logical conclusion its power sector reforms to deliver stable power supply to the populace, while priority should be given to the rehabilitation of deplorable road networks while constructing additional ones across the nation.
He said: “There is the need for close monitoring and regulation of the activities of road concessionaires to ensure optimum benefits from such concessions. The transportation and haulage system is virtually road dependent. This is not good for the economy.
“Development of alternative transport system, particularly the water transport, railway, both intra and interstate, should be accorded high priority.
“We recognise the efforts of government in respect of its rail modernisation programme and recommend that the programme should be accelerated in view of its centrality to the growth of internal trade and industrial competitiveness.”
With the upcoming general elections, he advised Government not to focus solely on politics at the expense of the economy and good governance, but continue to work assiduously to sustain the steady stabilisation of our economy through informed policies to position it for continued growth.
However, on the anti-graft war, the government, according to some analysts was able to change the status quo to an extent, as they all agree that it became obvious that there was a new sherrif in town.
Indeed, one of the landmark strategies initiated by the government was the Whistle-blower policy, which, according to the government, has yielded several recoveries, including, N13.8 billion from tax evaders and N7.8 billion, $378 million, £27,800 in recoveries from public officials targeted by whistleblowers.
It also said the National Economic Council (NEC), under the Chairmanship of Vice President Yemi Osinbajo, approved the audit of key federal revenue generating agencies, which has so far yielded a total sum of N526 billion and $21 billion. The money was underpaid to the Federation Account between 2010 and 2015.
However, while the ruling APC goes to the 2019 polls with some of these achievements, many believe the government may have fallen short of great expectations Nigerians including improving their living standards. But, rather, what they have experienced in the last twelve months was more of despondency and hopelessness

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We’ve Only One House Of Assembly Led By Oko-Jumbo, Fubara Clarifies …Signs Into Law N1.188trn Rivers 2025 Budget

Published

11 hours ago

January 10, 2025

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has insisted that there is only one House of Assembly existing in the State, and it is led by Rt Hon. Victor Oko-Jumbo.

Governor Fubara made the clarification shortly after giving assent to the Rivers State Appropriation Law No.1 of 2025, at Government House in Port Harcourt.

The Governor said the records need to be put straight to address insinuations in some quarters about a possible splitter in the Legislature, and stated that there is no such division.

Governor Fubara stated: “I want to say this, maybe, for some persons somewhere who are still mixing up issues. We have only one Rivers State House of Assembly, and that Assembly is headed by Rt Hon Victor Oko-Jumbo”.

He described those who abdicated their mandate in the House as a group of friends who had embarked on Sinbad journey, and half-way into the journey, they decided to return, saying, “It is too late. We are not going back. As far as I am concerned, we have moved on.”

Governor Fubara said that as it stands now, the focus of his administration is to do everything possible in defending the interest of Rivers State and the integrity of governance, and assured that with the 2025 budget now signed, every projection made in it will be addressed to deliver hope and good life to all residents in the State.

He said, “We will make sure that we kick-start, so that the record of performance that was accorded by this administration in the year 2024 will be higher in this year, 2025.

“Let me first thank the Rivers State House of Assembly for doing very diligent job, and also realizing the task that we have ahead of us, which is to continue to work for Rivers people. So, I want to thank you for working very hard and ensuring that we hit the ground running in this New Year.”

Governor Fubara also commended members of the State Executive Council, which he described as the management team, especially the Deputy Governor, for their support and cooperation, and particularly thanked the Commissioners for Finance, and Budget, as well as the Acting Chairman of Rivers State Internal Revenue Board, for the wonderful job they did last year.

He noted, “We expect you to do more because we have a bigger task ahead of us. We have made some promises to our people. Education, Health and Agriculture; we must make sure we make good impact just like we have done in the areas of road and other aspects of the economy. We made a promise to you (Rivers people) that we will continue to protect, defend and promote the interest of our dear State.”

In his speech, Speaker of Rivers State House of Assembly, Rt Hon Victor Oko-Jumbo, asserted that Rivers people witnessed unprecedented growth in the State made possible by the administration of Governor Fubara in infrastructure development, healthcare delivery, education, social welfare, security and other sectors.

Rt Hon Oko-Jumbo pointed to how Governor Fubara has become the beacon of hope of the common man on the streets, because, according to him, they are happy with the positive impact his leadership style has afforded them.

The Speaker explained that Governor Fubara has paid Rivers civil servants and pensioners N100,000.00 Christmas Bonus, being the second time; and approved and paid N85,000.00 minimum wage (salary) to civil servants, which have stood him out as a leader that prioritises the well-being of the people.

He said, “Your Excellency, 2025 promises to be a year of strategic planning and partnership. We have no doubt that you will carry out the task of developing and delivering the dividends of democracy to every nook and cranny of Rivers State. So, Your Excellency, on behalf of the 10th Rivers State House of Assembly, we want to say thank you for being the People’s Governor, and thank you for the strategic partnership with the Legislature. Your Excellency, 2025 promises to be a year of exponential growth in Rivers State.”

Presenting the 2025 Budget to Governor Fubara for assent, Leader of the House, Hon Sokari Goodboy Sokari, said the total projected estimate of N1,188,962,739,932.36 for the 2025 fiscal year indicated a huge leap from previous year’s figure, indicating progress and assuring multiplication of comfort that good leadership can provide.

Hon Sokari also noted the strategic allocations for Recurrent and Capital expenditures that provide for the welfare of workers and retirees, more development projects, as well as savings that will be made from accruing revenues.

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Tinubu calls for increased currency swap between China, Nigeria

Published

11 hours ago

January 10, 2025

The Tide

President Bola Tinubu yesterday urged the Chinese government to increase the two billion dollar currency swap between Nigeria and China to enhance trade between the two countries.

He also called for an upward review of the 50 billion dollar aid package for Africa, which China’s President Xi Jinping announced last year.

China and Nigeria recently renewed their currency swap agreement, valued at 15 billion yuan (approximately 2 billion dollars), to enhance trade and investment.

Receiving Wang Yi, the Minister of Foreign Affairs of China, at the State House, the President said increasing the level of currency swaps would speed up the infrastructural development in Nigeria and deepen the strategic bilateral relations.

“We still demand more in the area of currency swap. The level you have approved as a government for Nigeria is inadequate considering our programme. If you can increase that, it will be well appreciated.

“Our bond should grow stronger and become unbreakable,” the President said.

Regarding the 50 billion dollars pledged by the Chinese government to support Africa, President Tinubu noted that the continent’s infrastructural needs would require more commitment, urging a review of the amount to reflect the continent’s reality.

“I am happy you are part of China’s highest decision-making body. We will want you to use your position to influence improved project funding.

“First, I say yes to the 50 billion dollar support, and thank you for contributing to African growth. The infrastructural needs of Africa are greater than that, and we want to move as rapidly as our other counterparts.

“All share your vision of rapid development. Africa values the relationship with China, and we seek deeper collaboration for infrastructural development,” he stated.

President Tinubu called on China to support Nigeria’s bid for a permanent United Nations Security Council seat.

“You are a member of the UN Security Council. We want you to use your influence to ensure Nigeria secures the seat,” the President said.

Tinubu said Africa, particularly Nigeria, was prepared to meet developmental goals and contribute counterpart project funding.

“We are ready to move and reach the various developmental goals. Due to our deliberation, we signed many MOUs and planned many action programmes.

“My visit during FOCAC was a good experience. We signed several comprehensive MOUs during the visit. We planned several programmes of action,” he said.

Yi thanked Tinubu for appointing a Director General and Global Liaison, Nigeria—China Strategic Partnership, to oversee the implementation of the MOUs for the rapid development of the Nigerian economy.

“I would like to thank Nigeria for abiding by the one-China principle, and we will continue to support Nigeria in achieving the Renewed Hope Agenda, countering terrorism and ensuring regional security,” he said.

Yi said Chinese investments in the country would focus on employment generation and infrastructural development.

He said the Chinese National Development Bank had started funding some development projects.

He also said the Chinese government would support including an African country in the UN Security Council.

“We stand with Africa, and we will not support a country that invades another country,” he stated.

The foreign minister said China would welcome Nigeria’s membership in the BRICS and participation in the global development mechanism.

He said China fully supported Dr Ngozi Okonjo-Iweala, the Director General of the World Trade Organisation (WTO), for a second term in office.

The minister lauded President Tinubu for his visionary leadership and consistency in projecting Africa’s needs, which require China’s support.

“You brought Renewed Hope to the people of Nigeria. Your economy has sustained sound momentum, and Nigeria’s global influence has steadily increased.

“Nigeria has played an important role in upholding regional peace and has become an important force for African stability.

“We congratulate Nigeria on its achievements and believe that, under your leadership, Nigeria will realise greater achievements,” the Chinese foreign minister stated.

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FG urges unified efforts against emerging COVID-19 threats

Published

14 hours ago

January 10, 2025

The Tide

The Federal Government has called for unified efforts by stakeholders to tackle the emerging COVID-19 variants in the country.

Prof. Muhammed Ali Pate, the Coordinating Minister of Health and Social Development, made the call in Abuja on Thursday, at a strategic meeting on COVID-19 preparedness and response.

The meeting was organised by the National Emergency Management Agency (NEMA), following the recent emergence of a new COVID-19 variant in China and subsequent international concerns about the spread of the deadly virus.

The Tide source reports that NEMA conveyed the strategic stakeholders meeting to discuss preparedness, response plans, and proactive measures within Nigeria’s national context against the virus.

The minister, represented by a Director in Public Health Department at the Ministry, Mrs Chidinma Agbai, highlighted the devastating global impact of the pandemic and Nigeria’s resilience in spite of initial dire predictions.

He warned against misinformation and urged collaboration among stakeholders, including health officials and the media, to strengthen border controls and revive pandemic response infrastructure.

“A couple of months, the global world became affected one way or the other. you saw the number of people that were lost. They were counted in millions, people that were lost through COVID-19.

“You also saw the countermeasures that were taken by various countries. And surprisingly, those of us in Africa and Nigeria in particular, were expected to count our dead in millions. But God being our helper, It did not consume so much.

“But one life is a serious loss to a nation. So many Nigerians lost their lives, not really because of COVID-19, but because of countermeasures,” he said.

According to him, during the last COVID-19 and Ebola, people were told to take salt. Some people were told to take potash. So many countermeasures were introduced, and a lot of people lost their lives.

“So, now again in this harmattan period, we have to be careful because COVID-19 started in the harmattan period too, in the past years, it has reared its head again in China.

“This time around, it’s a mutant type that has come up. And China, being what it is, is keeping quiet. They don’t want to raise alarm as to what they are experiencing.

“They’ve closed their doors to various appeals for them to speak up.

“So for us in Nigeria, we have to put deliberate efforts to ensure that those who are coming into Nigeria, or those who are leaving the country, are protected,” he said.

He emphasised the importance of agencies such as the Nigerian Immigration Service (NIS) and others in ensuring that the country’s borders were under surveillance.

He urged that similar measure taken to curtail Ebola some years back should be applied at the airports, the land borders and the sea ports to secure the lives of Nigerians.

The minister also called for renewed efforts in vaccine development and public education to prevent panic and safeguard lives.

The Director-General of NEMA, Mrs Zubaida Umar, in her remarks called for proactive planning, collaboration, and resource mobilisation to safeguard the country’s public health emergencies.

Umar, who was represented by the Director, Planning Research and Forecasting, Mr Onimode Bandele, said that the meeting was crucial amid global concerns.

The director-general stressed the importance of information sharing, transparency, and a unified approach in addressing the challenge.

“The recent COVID-19 situation emerging from China serves as a stark reminder that public health emergency recognises no borders.

“In today’s interconnected world, a health threat in one country has the potential to impact nations across continents.

“While Nigeria is not directly affected at the moment, proactive planning, preparedness, and collaboration are essential to safeguarding our citizens and mitigating any potential risk.

“In line with this mandate, NEMA aims to be number one to share insight and update on the current global COVID-19 situation and its potential implication for Nigeria,” she said.

Umar also reaffirmed NEMA’s commitment to effective disaster management and urged unified efforts to maintain Nigeria’s resilience against global health threats.

On his part, Mr Hopewell Munyari, Operations Manager, International Federation of Red cross, urged Nigerians to learn from the COVID-19 response to improve future emergency efforts.

Munyari underscored the Nigerian Red Cross’s role as an auxiliary to government, actively working on responses like Lassa fever and mFox outbreaks.

He also called for leveraging global Red Cross networks and volunteers to enhance preparedness and ensure timely, reliable communication with communities.