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IMF Allocates Special Drawing Rights Of $3.35bn To Nigeria

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Nigeria has been allocated about $3.35billion as part of a historic general allocation of Special Drawing Rights (SDRs) of the International Monetary Fund (IMF).
This is a result of the approval of a general allocation of about SDR456billion – an equivalent of $650billion – by the IMF Board of Governors.
The allocation, which was approved, last Monday, aims to boost global liquidity at a time when the world is grappling with the coronavirus (Covid-19) pandemic.
“This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis,” IMF Managing Director, Kristalina Georgieva, said.
Although it is not a currency, the SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.
It is a potential claim on the freely usable currencies of IMF members and can provide a country with liquidity.
The SDR is defined by the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.
The amount allocated to Nigeria is as a result of the exchange rate of reference which is 0.702283 SDR to a dollar as of July 1, 2021, and Nigeria has 2.4545billion SDRs.
“The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy,” the IMF managing director added.
“It will particularly help our most vulnerable countries struggling to cope with the impact of the Covid-19 crisis.”
According to the IMF, the general allocation of SDRs will become effective on August 23 and the newly created SDRs will be credited to IMF member countries in proportion to their existing quotas in the Fund.
It stated that about $275billion (about SDR193billion) of the new allocation will go to emerging markets and developing countries, including low-income countries.
Georgieva promised that the fund would continue to engage actively with its membership to identify viable options for voluntary channelling of SDRs from wealthier to poorer and more vulnerable member countries to support their pandemic recovery and achieve resilient and sustainable growth.
One key option is for members that have strong external positions to voluntarily channel part of their SDRs to scale up lending for low-income countries through the IMF’s Poverty Reduction and Growth Trust (PRGT).
The IMF said the concessional support through the PRGT was currently interest-free, adding that it was exploring other options to help poorer and more vulnerable countries in their recovery efforts.
A new Resilience and Sustainability Trust could be considered to facilitate more resilient and sustainable growth in the medium term, it stated.

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Stop Creating Enmity, It’ll Hurt You, Fubara Tells Police …Donates 100 Vehicles To Boost Response To Emergencies

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Rivers State Governor, Sir Siminalayi Fubara, has advised partisan police officers who abandon their core professional responsibilities to pursue vested political interests to know that the enmity they fuel and eventually create will hurt them in the long run.
Governor Fubara maintained that police officers are engaged and trained as professionals to protect lives and property while contributing to the desired peace in the State as a patriotic duty.
The Governor insisted that it is, therefore, an aberration for any of them to think that protecting any particular individual or being one-sided in the political affairs to the detriment of the State amounts to professionalism.
Governor Fubara gave the advice at the inauguration and formal handover of 100 operational vehicles acquired by his administration to the Rivers State Police Command at the Sharks Football Stadium in Port Harcourt, yesterday.
The Governor said: “I need to say this, so that you will understand. When you (Disu) came into Rivers State, and I had my encounter with you, I requested for only one thing: That I will never ask you to do what is wrong, so do what is right. Protect the lives and property of Rivers people. Don’t be partisan.
“We have seen those people that were partisan; how they ended. And, I am saying it here, to every one of you that is an officer that is being partisan: you will see how you will end.
“So, work in such a way that when your name is mentioned in this State, or your children come to this State, you won’t be scared. This is important.”
Governor Fubara urged them to forget about the current ongoing political anxiety in the State, because, according to him, nothing will last forever.
He charged them to conduct their operations as real professionals that have been so trained so that they can be effective in the responsibility of protecting lives and property of people in Rivers State.
Governor Fubara said: “It is not to protect any individual. It is not to be one-sided in the political affairs of the State. Politics will come and it will go.
“The enmity you are creating, for those of you that are partisan, will live with you forever. So, I want to advise you, I have said it before, and I am saying it again: I will never ask any of you to do what is wrong. My appeal is: stand on the ethics of your profession, protect lives and property of Rivers people. Be fair to all.”
Commenting on the donated vehicles, Governor Fubara said it is an achievement of the Commissioner of Police whose idea it was to make such operational vehicles available for his Command.
Governor Fubara explained that what he had originally planned was to provide very high-profile vehicles to all the security agencies in the State to enhance their operational capabilities much more.
He said: “But, the CP advised that he did it sometime in Lagos State; that we should adopt that model by acquiring these vehicles you are seeing here: the Toyota Sienna, Camry and Collora, and I bought into the idea.
“And why are we doing this? We discovered that the response time to crime scenes; launching attacks against acts of criminality, were slow because you (police) lack mobility.
“And what we just did was a first phase of support to the Nigerian Police. We also intend to come again to give you other sophisticated vehicles to support what you are doing,” the Governor added.
Governor Fubara assured that as a State Government, his administration will continue to support the police because, as he put it, they are worthy friends to have since criminals cannot be friends to covet.
He emphasised: “So, we need to accommodate you. We need to tolerate you. We need to work with you so that at the end, people can live freely, move freely, and do their businesses freely in Rivers State.
“My Honourable CP, like I said before privately, I am saying it again: I want to appreciate you. We will give you all the support to succeed. I will give you all the support that will help to build your name into better reckoning when you leave here. I am very sure God will elevate you positively,” he added.
In his opening remarks, the Rivers State Commissioner of Police, Olatunji Disu, described the event as a significant milestone in the ongoing commitment towards achieving safety and security of the State.
CP Disu expressed gratitude to Governor Fubara for his unwavering support to the State Command of the Nigerian Police Force, which has translated in their dedication to serving the welfare of the various communities.
He said: “I stand before you filled with gratitude as we gather to commission these 100 vehicles, a generous donation from our esteemed Governor, Sir Siminalayi Fubara.
“This act of generosity, not only enhances our operational capacity, but also reflects your deep concern for the citizens of the State.
“These vehicles will empower our officers, enabling them to respond more swiftly and effectively to emergencies, and enhance our community policing efforts. With your support Sir, we are reinforcing our resolve to combat crime and uphold the rule of law.”
CP Disu, on behalf of the entire Rivers State Police Command, thanked Governor Fubara for his unparalleled leadership, and commitment to good governance in the State.
He assured that, together, the Police Force will continue to work tirelessly, and perform its professional duties in keeping Rivers State safe and secured for everybody.

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New Pump Price Of Petrol Worrisome, Unfair -NECA D-G

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The Nigeria Employers Consultative Association (NECA) says the new hike in pump price of Premium Motor Spirit (PMS), also known as petrol, is worrisome and unfair.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde said this in a statement while reacting to the new hike in pump price of PMS in Abuja, yesterday.
The Tide’s source recalls that the Nigerian National Petroleum Company Ltd. (NNPCL) had said that with effect from Sept. 3, the new pump price of PMS would be N897 per litre.
According to Oyerinde, the new pump price of petrol is not only worrisome but also unfair.
“We had expected that the government will leverage on the momentum created by the completion of the Dangote refinery and the planned commencement of operation of the Port-Harcourt refinery.
“This is in order to clear the obvious self-inflicted pain on Nigerians and progressively reduce the pump price of petrol. This seems not to be the case.
“This new pump price could be seen as making Nigerians to pay for the crass inefficiency in the NNPCL,” he said.
He said that rather than address the fundamentals that have made Nigeria a net importer of petrol, even when we have four refineries, government have continued to inflict pain on Nigerians.
According to him, the government is, advertently, contributing to the increase in cost of doing business.
“We advise that government should have a rethink and do all that is necessary to address the continuous impoverishment of Nigerians and incapacitation of organised businesses,” he said.

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China, Nigeria Pledge To Strengthen Ties

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President Xi Jinping has declared his readiness to work closely with President Bola Tinubu to fully unleash the exemplary roles of China-Nigeria diplomatic friendship and advance China-Africa cooperation.
Xi disclosed this in Beijing at the meeting with Tinubu, who was on State Visit to the Great Hall at the invitation of the Chinese President.
The meeting is in view of the 2024 summit of the Forum on China-Africa Cooperation (FOCAC) scheduled to hold from Sept. 4 to Sept. 6 in Beijing, China.
During their meeting, Xi stated that since the past half of a century that China and Nigeria established their diplomatic ties both parties have always treated each with mutual understanding.
Xi said, “We have found the path of seeking collective strength, unity and win-win cooperation, until this point China and Nigeria as major developing countries have strengthened strategic cooperation and set new vistas for China-Africa Relations in the new era.
“This has further spearheaded common progress among global South countries; I propose elevating our bilateral ties to a comprehensive strategic partnership.
“At the upcoming 2024 FOCAC summit, we will jointly take stock of the experience of China-Africa friendship and advance the building of high level of China-Africa community shared future.
“China and Nigeria alphabet worked closely together under the FOCAC framework and jointly carried out strategic cooperation projects.
“I am ready to work with Mr President, to fully unleash the exemplary role of China-Nigeria cooperation, to advance China-Nigeria and China-Africa relations toward a new and greater achievement.”
Responding, Tinubu expressed appreciation to Xi, saying the visit marked his second visitation to the country.
According to him, the first time was during his tenure as the then governor of Lagos and now, as president.
“This is a very important visit for Nigeria and the rest of Africa as the Chairman of ECOWAS.
“China and Nigeria relations have indeed lasted for over a half a century and will continue to be strengthened to advance our trade and economic development.
“Nigeria has a very great potential as the country with largest population in Africa and biggest in the area of young population that can drive the economic growth.
“You have upgraded the relationship to what is more than just strategic in addressing developmental problems.
“The strategic partnership should result in our regional development, peace stability and security in West Africa, which has become crucial,” Tinubu said.
He said that Nigeria was in the path to ensure economic reforms, adding that when fully implemented, such reform would engender sustainable growth.
“We have recognised the need to reform our economic programme and taken strategic measures to realise such goals.
Highpoint of the meeting was the signing of Memorandum of Understanding (MoU) on Belt and Road Initiative projects, news exchange cooperation, cooperation on television, among others.
President Tinubu was accompanied by Minister of Foreign Affairs, Yusuf Tuggar, Sen. Uba Sani, Governor of Kaduna and Gov. AbdulRahman AbdulRasaq of Kwara, among others.

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