Economy

CBN unveils N50b COVID-19 stimulus

Published

4 years ago

March 26, 2020

. A household can get N3m
N10b for Lagos
. Fed Govt’s N1b bailout for pharm firms
. Japan gives $18.2 million grant

A special package to cushion the effect of the COVID-19 pandemic was on Wednesday unveiled by the Federal Government.

They include: N1 billion bailout for pharmaceutical companies; release of N10 billion to the Lagos State Government to battle the virus – the state has the highest number of victims; and $18.2 million to strengthen the National Centre for Disease Control (NCDC). This cash is a grant from the Japanese government.

Finance Minister Mr. Zainab Ahmed announced the package during a meeting of members of the Executive with the National Assembly leadership.

Mrs. Ahmed solicited the support of lawmakers for the cut in the Budget 2020 expenditure to reflect the present economic downturn caused mainly by the Coronavirus pandemic.

The minister was accompanied to the meeting by Minister of State for Budget and National Planning, Prince Clem Agba, Minister of Petroleum Resources (State), Timipre Sylva, Central Bank of Nigeria (CBN) Governor Godwin Emefiele; Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, and Senior Special Assistant to the President on National Assembly Matters, Senator Babajide Omoworare.

CBN Governor Godwin Emefiele

Members of the National Assembly leadership that attended the meeting besides Senate President Ahmed Lawan and Speaker Femi Gbajabiamila, are Deputy Senate President Ovie Omo-Agege; Deputy Speaker, Idris Wase; Senate Leader Yahaya Abdullahi; Leader of the House Ado Doguwa; Deputy Senate Leader, Ajayi Boroffice; Senate Minority Leader Enyinnaya Abaribe; Minority Leader of the House Tony Elumelu; Senate Deputy Whip Aliyu Sabi Abdullahi and Senate Deputy Minority Whip, Philip Aduda.

Others are the Chairman, Senate Committee on Appropriations, Barau Jibrin and the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Uba Sani.

Ahmed added that the Federal Government has cut its 2020 revenue projection for the Nigeria Customs Service (NCS) from N1.5 trillion to N943 billion due to the economic downturn caused by the pandemic.

She urged the National Assembly to effect a downward review of the oil benchmark in the 2020 budget from $57 to $30.

Ahmed said: “Prior to COVID-19 and oil price decline, the Nigerian economy was already fragile and vulnerable.”

According to her, due to the global economic downturn precipitated by the impact of the Coronavirus pandemic, international oil prices plunged as low as $22 per barrel on the international market.

She added that the impact of the pandemic which resulted in international crisis created a disruption in travel and trade, and put “increasing pressure on the naira and foreign reserves as the crude oil sales receipts decline and the country’s micro-economic outlook worsens.”

She also told the leadership of the National Assembly that budgeted revenues for the NCS have been reduced “due to anticipated reduction in trade volumes; and privatization proceeds to be cut by 50 per cent, based on the adverse economic outlook on sales of the Independent Power Projects (IPPs) and other assets.”

Ahmed said the Federal Government has undertaken cuts to Revenue-related expenditures for NNPC for several projects included in the 2020 Appropriation Act passed by the National Assembly in December, 2019.

“The Federal Government is working on fiscal stimulus measures to provide fiscal relief for Taxpayers and key economic sectors;

“Incentivise employers to retain and recruit staff during the economic downturn; stimulate investment in critical infrastructure;

“Review non-essential tax waivers to optimize revenues; and compliment monetary and trade interventions to respond to the crisis.”

She added that the Federal Government had made provision for health sector interventions by introducing import duty waivers for essential input for pharmaceutical firms; tax waivers on new equipment; and deferment of tax to increase production.

Emefiele said “while we would expect to see a decline in our expected growth projection for 2020 relative to 2019, the exact impact will be dependent on how well the Coronavirus is contained over the next few months, and how long low oil prices persist.”

Senate President Lawan, who presided over the meeting said: “If we have to review the budget itself, we have to consider the MTEF/FSP.

“Even in sickness, we need government to provide services.

“The impact of COVID-19 is well-known to all of us in terms of health and the economy.

“Here, we will be talking of revenues that we estimated to fund the budget 2020.

“Because the oil price has gone so low due to the impact of COVID-19, the Minister of State should be able to tell us where we will be in the next six months or so.

“We should have concepts that can deliver fast and are sustainable.

“Anything that we do that can not provide succour and relief to our people will lead to catastrophe.”

Speaker Gbajabiamila said: “Taking a cursory look at some of the papers (presentations), I think this meeting is actually very timely and very important because we live in very unusual time and it is time we start thinking outside the box to see how we can stabilise our economy and the direction it is going to take.”

Economy

Senate Confirms Nomination of Yemi Cardoso as CBN Governor

Published

6 days ago

September 27, 2023

Sunrise Nigeria

The Senate on Tuesday confirmed the nomination of Dr Olayemi Michael Cardoso as the Governor of the Central Bank of Nigeria, CBN.

This is as questions are being raised as to the legal status of suspended CBN Governor Godwin Emefiele whose sack or resignation hasn’t been confirmed by the Federal Government.

According to the CBN Act, the President requires the endorsement of 2/3 majority of the Nigerian Senate to remove the Governor. There are other conditions that may lead to his removal, none of which has been established.

Cardoso was screened alongside four nominees for the positions of CBN Deputy Governors, to steer affairs of the apex bank in the next five years.

The deputy governors include: Mrs. Emem Nnana Usoro, Mr. Muhammad Sani Abdullahi Dattijo, Mr. Philip Ikeazor, and Dr. Bala M. Bello.

Recall that last week, Cardoso resumed as the CBN governor in an acting capacity pending his screening and expected confirmation by the Senate.

Meanwhile, the Senate has also scheduled the screening of two additional ministerial nominees by President Bola Tinubu for Tuesday, October 3, 2023.

The President, while the National Assembly was on break, appointed the duo of Dr. Jamila Ibrahim and Ayodele Olawande as Minister of Youths and Minister of State for Youths respectively.

Economy

Cost of Living: Kogi, Lagos and Rivers Dwarf Other States in NBS Report

Published

2 weeks ago

September 16, 2023

Sunrise Nigeria

By Elizabeth Okwe
…

The Nigeria Bureau of Statistics (NBS) has revealed that Kogi, Lagos, and Rivers are the most expensive states to live in, based on inflation rates for August 2023.

In its latest Consumer Price Index data released on Friday, the NBS said on a year-on-year basis, Kogi led the way with the highest all-items inflation rate at 31.50 per cent, followed closely by Lagos at 29.17 per cent and Rivers at 29.06 per cent.

In contrast, Sokoto recorded 20.91 per cent, Borno 21.77 per cent, and Nasarawa 22.25 per cent, recorded the slowest rise in headline inflation on a year-on-year basis.
When examined on a month-on-month basis, the trend continued, with August 2023 seeing the highest increases in Kwara at 6.07 per cent, Osun at 4.36 per cent, and Kogi at 4.35 per cent.

While Sokoto recorded 1.38 per cent, Borno at 1.73 per cent, and Ogun at 1.89 per cent recorded the slowest rise in month-on-month inflation.
Specifically for food inflation, the figures for August 2023 showed a similar pattern, with Kogi again taking the lead with the highest year-on-year basis food inflation rate at 38.84 per cent. Lagos followed closely at 36.04 per cent, and Kwara at 35.33 per cent.
On the other hand, Sokoto 20.09 per cent, Nasarawa 24.35 per cent, and Jigawa 24.53 per cent recorded the slowest rise in food inflation on a year-on-year basis.

On a month-on-month basis for the same period, Rivers at 7.12 per cent, Kwara at 5.89 per cent, and Kogi at 5.80per cent recorded the highest increases, while Sokoto recorded 0.50 per cent, Abuja at 1.30 per cent, and Niger at 1.40 per cent experienced the slowest rise in food inflation.
The report noted that the surge in food inflation can be attributed to the significant price hikes in various essential food items, including oil and fat, bread and cereals, fish, fruit, meat, vegetables, potatoes, yam, and other tubers, vegetables, milk, cheese, and eggs.

Economy

Tinubu Nominates Olayemi Cardoso to Replace Emefiele as CBN Governor

Published

2 weeks ago

September 15, 2023

Sunrise Nigeria

Cardoso

By Elizabeth Okwe and Ojone Grace Odaudu
…
President Bola Tinubu has nominated Dr. Olayemi Michael Cardoso to serve as the new Governor of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending his confirmation by the Nigerian Senate.

A statement issued on Friday by Special Adviser to the President on Media and Publicity, Ajuri Ngelale, said the directive is in conformity with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which vests in the President of the Federal Republic of Nigeria, the authority to appoint the Governor and Four (4) Deputy Governors for the Central Bank of Nigeria (CBN), subject to confirmation by the Senate of the Federal Republic of Nigeria.

Currently Chairman of the Board of Directors of Citibank Nigeria, Dr Yemi Cardoso is a financial and development expert with over thirty years’ experience in the private, public and not-for-profit sectors.

Furthermore, President Bola Tinubu has approved the nomination of four new Deputy Governors of the Central Bank of Nigeria (CBN), for a term of five (5) years at the first instance, pending their confirmation by the Nigerian Senate, as listed below:

Glo
(1) Mrs. Emem Nnana Usoro

(2) Mr. Muhammad Sani Abdullahi Dattijo

(3) Mr. Philip Ikeazor

(4) Dr. Bala M. Bello

“In line with President Bola Tinubu’s Renewed Hope agenda, the President expects the above listed nominees to successfully implement critical reforms at the Central Bank of Nigeria, which will enhance the confidence of Nigerians and international partners in the restructuring of the Nigerian economy toward sustainable growth and prosperity for all”, the statement added.