Category: Economy - Page 11 - African News Today

We’re Not Borrowing to Fund Projects – Wike

24Jun

By Obiajulu Joel NwoluNo Comments

Economy, News, Nigeria

We’re Not Borrowing to Fund Projects – Wike

Rivers Governor Nyesom Wike has clarified his administration is not borrowing to execute projects in the state. Speaking at the flag-off for the construction of Trans-Kalabari Road Phase 1 in Degema Local Government Area on Thursday, Wike reminded the people that even the Governor of Central Bank of Nigeria (CBN) had confirmed his position. Wike said he would not borrow to complete the Trans-Kalabari Road, which connects Krakrama, Omekwe-ama, Angula-ama, Mina-ama and other communities in the Kalabari area. He said: “People are asking where am I getting the money from. People are saying I’m borrowing money. If I borrow money to develop my place (state) is there any offense there? They that borrow, did they do the road? If I’m borrowing and doing the work, have I not done well? R...

21Jun

By Chinedu IbeakanmaNo Comments

Economy, Finance, News, Nigeria

Borrowing Is Good For Nigeria– Fashola

The Minister of Works and Housing, Babatunde Fashola, has defended the Nigerian Government’s resort to loans to expand infrastructure in the country. Fashola, who spoke to the News Agency of Nigeria, said that the country would not make meaningful progress without taking loans to boost infrastructure. He explained that borrowing is not a sin and it is part of the essence of keeping the economy growing. ”It is in our own interest that the government does some borrowing and spends it on investment because that sector contributes to the Gross Domestic Products (GDP) and contributes to employment. “I do not support irresponsible borrowing so let us be clear; there has to be some sense to this. “So long as you are borrowing to invest and you are investing in assets, then we can hav...

Return of Fuel Subsidies Disturbing, IMF Tells FG

18Jun

By Chinedu IbeakanmaNo Comments

Economy, News, Nigeria, Petroleum

Return of Fuel Subsidies Disturbing, IMF Tells FG

In a virtual meeting with the representatives of the Federal Government, the mission of the International Monetary Fund stated that the resurfacing of fuel subsidies was concerning. The IMF mission led by Jesmin Rahman, according to a press release, expressed its concerns about rising fuel subsidies to the Nigerian authorities during a virtual meeting. The Fund also stressed the importance of introducing market-based fuel pricing mechanisms and the need to deploy well targeted social support to cushion any impact on the poor. The mission commended the Central Bank of Nigeria for merging taking the official exchange rate to the NAFEX window. However, they recommended the unification of all exchange rate windows and establishing a market-clearing exchange rate. On monetary pol...

17Jun

By Obiajulu Joel NwoluNo Comments

Economy, Finance, News, Nigeria

Naira Dips to Four-Year Low

Nigeria’s legal tender has dipped further to a four-year low in the parallel market after the central bank’s effort to prompt banks to sell more dollars to customers failed to address the widening difference between the official and black-market rates. Unlicensed dealers were exchanging the naira at 502 per dollar on Wednesday from 500 last week, abokifc.com, a website that collates the data reports. The development amounted to the lowest exchange rate for the naira since 2017. The rate widens the gap between the official and the parallel market rate to 22% when compared with the spot rate of 411.13 naira in Lagos on Wednesday. Nigeria, Africa’s biggest economy, has witnessed devaluation of its currency thrice since March last year as lower oil income, which accounts for about 90%...

CBN May Start Printing Gambia’s Currency – Emefiele

16Jun

By Chinedu IbeakanmaNo Comments

Economy, News, Nigeria

CBN May Start Printing Gambia’s Currency – Emefiele

The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said that the bank is willing to assist the Central Bank of the Gambia to print its legal tender. Emefiele said this in Abuja on Tuesday during a two-day visit by a delegation from the CBG, led by its governor, Mr Buah Saidy. This was in response to a request by the CBG for a possible partnership to tackle acute currency shortages among other currency management challenges in the country. Saidy informed the CBN governor that relying on its current printer, De La Rue of London, for its currency needs was expensive and unsustainable. He explained that it costs the bank about £70,000 to lift printed currencies from Sri Lanka to the Gambia. In response, the CBN Governor assured his visitors that the bank had a...

15Jun

By Chinedu IbeakanmaNo Comments

Economy, News, Nigeria, Press Statement

PDP Govs Lampoon Buhari Over Huge Debt Profile, CBN’s Operations

The Peoples Democratic Party Governors Forum on Monday rose from a meeting in Uyo, Akwa Ibom State, condemning the rising debt profile of the country. The forum said over 80 percent of the budget was being spent on serving debts. The body also accused the Central Bank of Nigeria of operating as an independent government within a government. The forum in a communique which was read by its Chairman and Governor of Sokoto State, Aminu Tambuwal, lamented that all the gains of the PDP-led government, when the country exited its debts obligations had been destroyed by the APC-led administration. ‘The communiqué reads in part, “The PDP frowns at the rising and seemingly uncontrollable debt profile of Nigeria with over 80 percent of normal Appropriation spent on debt servicing. “All...

Insecurity: We’ve Agreed to Start Taking Visible Actions – Obasanjo

12Jun

By Obiajulu Joel NwoluNo Comments

Economy, News, Nigeria

Insecurity: We’ve Agreed to Start Taking Visible Actions – Obasanjo

Arising from their Abuja meeting, elder statesmen in the country under the auspices of Committee for the Goodness of Nigeria, CGN, have refused to publicize the outcome of their meeting. Commenting on the resolution, former President Olusegun Obasanjo told reporters on Abuja that the CGN had agreed to present its communique to President Muhammadu Buhari, who Obasanjo said was duly notified of the meeting and its agenda. Obasanjo said members of the CGN agreed in principle to formally present their resolutions to President Buhari before any public disclosure, Punch reports. The former president, however, gave an insight into what was discussed at their Thursday meeting, which he said bothered on issues of security, economy, welfare, well-being, unity and progress of Nigeria. He ...

Inflation Looms as CBN Further Devalues Naira

26May

By Obiajulu Joel NwoluNo Comments

Economy, Finance, News, Nigeria

Inflation Looms as CBN Further Devalues Naira

The Central Bank of Nigeria, CBN, has further officially devalued the country’s currency to N410.25/$ after exhausting all options to maintain the value of the naira. Consequently, experts have expressed fear that the decision to chart the NAFEX Investor & Exporter forex window rate of N410.25 as its official exchange rate to the dollar would amount to inflation and increase the poverty level in Nigeria. The new rate was confirmed by the apex bank on its website following the removal of N379/$ earlier in May. CBN governor, Godwin Emefiele had said that the drop in crude oil earnings and the associated reduction in foreign portfolio inflows significantly affected the supply of foreign exchange into Nigeria. He had said, “In order to adjust for the decrease in the supply of f...

Buhari Seeks Senate Approval for Fresh N2.3trn External Loan

18May

By Chinedu IbeakanmaNo Comments

Economy, Finance, News, Nigeria

Buhari Seeks Senate Approval for Fresh N2.3trn External Loan

The President, Major General Muhammadu Buhari (retd.), has asked the Senate to approve another N2.3trillion ($6.18bn) external loan. This is contained in a letter addressed to the Senate President, Ahmad Lawan, and read at plenary on Tuesday. Buhari said the proposed loan which is equivalent to N2.3trillion is to finance the 2021 budget deficit of N5.6 trillion. Buhari said the loan would enable the Federal Government to fund critical infrastructural projects in transportation, health, and education among others. This is coming barely a month after the Senate approved the sum of $1.5bn and €995 million external borrowings for the Federal Government. The loans were part of the $5.5 billion and €995 million external borrowings Buhari had, in May 2020, asked the Red Chamber to ...

CBN Promises more Credit Facilities for Youths

10May

By Chinedu IbeakanmaNo Comments

Economy, News, Nigeria

CBN Promises more Credit Facilities for Youths

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has reiterated the apex bank’s commitment to provide more loans to the youth. The bank chief urged youths to embrace agriculture, declaring the bank’s readiness to support them that are willing to engage in agriculture. The governor reiterated the bank’s opposition to the importation of maize. Emefiele made the declaration in Katsina, during the unveiling of the first maize pyramid and kick-off of the maize wet season farming under the CBN-Maize Association of Nigeria (MAAN) Anchor Borrowers’ Programme. He expressed belief that youths could leverage their talents, along with technological tools to improve farm productivity and delivery of agricultural produce to markets. Noting that agriculture offered significant be...