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FG’s Infrastructure Development Company Takes off 3rd Quarter – CBN Governor

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Emefiele
… To Attract N15 Trillion Fund

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele yesterday said that the N15 trillion Infrastructure Company Limited (InfraCo) created by the federal government to bridge the huge infrastructure gap will take off this quarter.

Emefiele who spoke at investors’ webinar forum designed to showcase the investment opportunities in Nigeria’s privatisation and economic reforms programmes said the federal government had approved KPMG as the financial adviser to InfraCo.

He stated that for Nigeria to attain meaningful growth, there must be huge investments in key sectors of the economy, including infrastructure such as rail and power, among others.

He further said the COVID-19 pandemic and developments in the global crude oil market had created negatively affected not only the global economy but also the Nigerian economy in the past 18 months.

He said in June 2021, investments in the importers and exporters (I&E) window stood at over N3 trillion at an average rate of N412 to the dollar, adding that this meant that on an average working day of 20 working days, close to $150 million was posted in that market.

“For Nigeria, we witnessed a drop in foreign exchange earnings, government revenues along with supply chain disruptions which ultimately led to the economy falling into a recession during the third quarter of 2020. Significant interventions by the monetary and fiscal authorities in key sectors of our economy such as in the manufacturing and agricultural sectors eventually helped and led to the rebound of growth during the fourth quarter of 2020 as gross domestic product (GDP) grew by 0.11 per cent.

“The sustenance of these measures has also helped to support growth of 0.51 per cent during the first quarter of 2021. Nonetheless, we consider this growth as fragile and therefore seek the support of those of us here at this webinar to continue to work with us to grow our economy,” he said.

Investors in the N15 trillion InfraCo include the CBN, Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation (AFC).

Emefiele said InfraCo had generated huge interest in deploying private capital to for infrastructure, adding that the approval of the vice president has been secured to appoint KPMG as transaction advisers.

In his keynote address, the vice president, Prof Yemi Osinbajo aid the seminar was organised to showcase investment opportunities arising from Nigerians economic reforms and privatisation activities.

I think that many who have observed the current Nigerian government would agree with me that an article of faith for this government is the importance of mobilising private capital and participation for improving efficiency and driving economic growth and this really explains why we have this collaboration today between the Bureau of Public Enterprises (which you know is in charge of our sectoral reform programme) with the Nigerian Investment Promotion Commission and the Nigerian Exchange Group (NGX) to host this seminar as an important platform drawing attention to investment opportunities to both our local and foreign friends and collaborators,” he added.

He stressed that privatising utilities of the size of the former PHCN “simply calls for deeper intentional consideration of the right models and the right type of investors and also looking at funding for these investors over an extended period of time.

“These are some of the challenges that we have seen, but I think that it’s an excellent lesson and there is so much that we are learning in approaching privatisation, especially our utilities, going forward,” he said.

Also speaking, the director general of the Bureau of Public enterprises, Mr. Alex Okoh, said the agency had listed over 36 assets for sale and giving them out to concessionaires under its 2021 work plan.

He disclosed that about N500 billion is expected to be contributed into the federal government coffers from the privatisation proceeds this year.

He further disclosed that 234 public assets had been sold in the last 32 years while N1 trillion was generated by the agency.

The event was organised by the BPE in collaboration with the Nigerian Investment Promotion Commission (NIPC) and the Nigerian Exchange Group (NGX).

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Economy

We Have Not Devalued the Naira, says CBN

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The Central Bank of Nigeria (CBN) has denied the report of the devaluation of the Nigerian currency to 630 Naira to a Dollar.

The CBN in a statement signed by its acting spokesman, Isa AbdulMumin, on Thursday said the details of the report do not conform with the realities of the Nigerian Foreign Exchange Market.

“For the avoidance of doubt, the exchange rate at the Investors and Exporters (I&E) window traded this
morning (June 1, 2023) at N465/US$1 and has been stable around this rate for a while,” the statement read in part.

The CBN urged the public to disregard the story, saying it is speculative and intended to cause panic.

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Economy

NPC Boss Canvases Inculcation Of Productivity In The Informal Sector

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The Director General, National Productivity Centre, Dr Kashim Akor said for a virile and robust economic sustainability, productivity should be mainstream into the Informal sector to protect the over 80% of jobs already created by the sector.

Dr Kashim Akor dropped the message saying the small scale businesses created out of these sector will fail or outlive it’s usefulness, without recourse to productivity.

He expressed this concern at a two days workshop to mark the 4th National Productivity Summit held at Nigerian Army Resource Centre, Asokoro FCT, Abuja between Tuesday 4th and Wednesday 5th of April, 2023.

He maintained that the quantum of jobs created by the Informal sector that had addressed unemployment rates in the country, will be counterproductive when productivity is neglected.

Dr Kashim Akor stressed that the only option to extricate failure of businesses in the Informal sector that had been driving force of the world economies was not only to enhance productivity, but it’s sustenance in all areas.

He advised the Informal sector to take productivity as it’s cardinal objectives, so as to continue to protect not only the sector , but unemployment rates in the country.

The two-day event has its theme, “Enhancing the Productivity of the Informal sector for Increased Competitiveness.

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Public Relief, as CBN Directs Banks to Release and Accept Old N200, N500, N1000 Notes

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Finally, the Central Bank of Nigeria ( CBN) has directed Deposit Money Banks operating in Nigeria to issue and accept the old N200, N500 and N1000 old banknotes legal tender till December 31,2023.

There has been public uproar concerning the apparent reluctance by the bank to give effect to the ruling of the Supreme Court of Nigeria on the legal tender status of the old and redesigned currencies.

A statement by the Acting Director Corporate Communications of the Apex Bank, Dr. Isah AbdulMumin said the directive is in compliance with the Supreme Court judgement of March 3, 2023, saying that the directive was also in compliance with the established tradition of obedience to court orders and sustenance of the Principles of The Rule of Law the administration of President Muhammadu Buhari is known for.

“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court judgement of March 3, 2023,” the statement said.

The Apex Bank which said it has met with the Bankers’ Committee on the development also directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023, mandated all concerned to conform accordingly.

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