Wednesday, March 23, 2016
Video - Nigeria to pump $1.76bln in second quarter
Nigeria's government will pump 1.76 billion dollars into the economy over the next quarter to rekindle the economy hard hit by a slump in oil revenues. Crude oil accounts for the bulk of Nigeria's revenue hurting Africa's largest economy since prices started dropping in June 2012. Parliament has already passed the country's budget for 2016, calling for record spending. Finance Minister, Kemi Adeosun and Minister of Planning, Udoma Udo Udoma, say the fresh money would be spent mostly on capital projects and job creation.
Nigeria expects oil output freeze at Doha meeting
OPEC member Nigeria expects oil producers to agree a supply freeze at a meeting in Doha next month which should stabilize crude prices even if Iran does not join, its petroleum minister said on Wednesday.
Qatar has invited OPEC members and major non-OPEC producers to meet on April 17 to agree a freeze following an initial deal in February between Saudi Arabia, Qatar, Venezuela and non-OPEC member Russia to hold supply at January levels.
"I expect that we will reach a conclusion on stabilization, stabilize current production as of January," Emmanuel Ibe Kachikwu told Reuters in an interview in Abuja.
It was not clear whether all 13 OPEC members including Iran would attend the Doha meeting, though Iranian officials have made it clear Tehran will not freeze output as it wants to raise exports following the lifting of Western sanctions.
But Kachikwu said Iran's impact was limited anyway as the country would take time to ramp up production.
"We are likely to see Iran not signing on," he said. "But we have all decided that if they don't we will proceed because we do not believe that currently their entry into the market will create too much of a threat for the next year," he said.
"So basically price stability is our expectation," he said, referring to the impact of a Doha deal.
Nigeria, which is the top oil producer in Africa, has been at the front of pushing for a production freeze as a slump in oil prices has whacked its public finances and sparked the worst economic
crisis for decades.
Kachikwu said Nigeria's current oil output was 2.2 million barrels a day and he planned to boost it to 2.5 million barrels but this would not add to the global crude supply glut.
"Whatever the extra (it) won't be in the market but go for our refining," he said.
The West African nation has been trying to kick start production at its four outdated refineries due to limited fuel imports and to end widespread petrol shortages.
Reuters
Qatar has invited OPEC members and major non-OPEC producers to meet on April 17 to agree a freeze following an initial deal in February between Saudi Arabia, Qatar, Venezuela and non-OPEC member Russia to hold supply at January levels.
"I expect that we will reach a conclusion on stabilization, stabilize current production as of January," Emmanuel Ibe Kachikwu told Reuters in an interview in Abuja.
It was not clear whether all 13 OPEC members including Iran would attend the Doha meeting, though Iranian officials have made it clear Tehran will not freeze output as it wants to raise exports following the lifting of Western sanctions.
But Kachikwu said Iran's impact was limited anyway as the country would take time to ramp up production.
"We are likely to see Iran not signing on," he said. "But we have all decided that if they don't we will proceed because we do not believe that currently their entry into the market will create too much of a threat for the next year," he said.
"So basically price stability is our expectation," he said, referring to the impact of a Doha deal.
Nigeria, which is the top oil producer in Africa, has been at the front of pushing for a production freeze as a slump in oil prices has whacked its public finances and sparked the worst economic
crisis for decades.Kachikwu said Nigeria's current oil output was 2.2 million barrels a day and he planned to boost it to 2.5 million barrels but this would not add to the global crude supply glut.
"Whatever the extra (it) won't be in the market but go for our refining," he said.
The West African nation has been trying to kick start production at its four outdated refineries due to limited fuel imports and to end widespread petrol shortages.
Reuters
Video - Fuel shortage persists in Nigeria despite increased supplies
Nigeria has been battling a long bout of fuel scarcity with long lines at petrol stations now the norm. The situation has lasted for about a month now. And despite ramping up supply, the scarcity has simply refused to go away.
Alex Iwobi forced out of training with Nigeria Super Eagles due to food poisoning
Iwobi, 19, was struck down after eating a salad with the rest of the squad at the training base in Abuja.
"He suffered from food poisoning and so was not part of the training," Siasia told a news conference. "But his condition is stable."
Iwobi has played two friendlies for Nigeria, having come through the youth ranks with England, and was expected to make his first competitive appearance for the country of his birth in an African Nations Cup qualifier against Egypt on Friday.
That would have meant Iwobi's international allegiance was pledged to Nigeria, with reports on Monday that England had tried to get the player to commit to them.
Iwobi linked up with Nigeria after scoring on his first Premier League start for the Gunners on Saturday, in a 2-0 victory at Everton.
ESPN
Related stories: Video - Nigeria and England fight over football player Alex Iwobi
Nigeria to inject N350 billion to boost economy
The Nigerian government says it will inject N350 billion to stimulate its economy, which is facing a severe crisis occasioned by falling oil prices.
Nigeria’s economic growth in the last quarter stood at 2.1 percent. The total growth recorded in 2015 was 2.8 percent, the slowest since 1999, according to data released by the National Bureau of Statistics, NBS.
Briefing journalists at the end of a two-day National Economic Council (NEC) retreat at the conference hall of the Presidential Villa, the minister of Finance, Kemi Adeosun, said the N350 billion would be spent mostly on capital projects and job creation.
“From the Federal Ministry of Finance in anticipation of the approval of the budget, we have virtually lined up about N350billion which we would be pumping into the Nigerian economy in the forthcoming months.
“We explained our rationale and the processes that we have put in place, safeguards to ensure that this money actually achieve the desired objective, which is to stimulate the economy.
“We are already discussing with some of the contractors who will be paid these monies and the objectives from the overall criteria is how many Nigerians would be re-engaged.
“We are specifically looking at contractors who have laid off staff and how many Nigerians are you going to put back to work as a result of this money that we are planning to release.
“We believe this would bring significant economic activity,” she said.
Ms. Adeosun said the retreat, which was the first by the present administration, deliberated extensively on the drop in revenue, particularly as to how it affects the state government and their ability to pay salaries and fulfil other obligations.
According to her, the general resolve of the council was that there was a need to bring in more cost efficiency in the operations of government, specifically the setting up an efficiency unit within the state governments, to rationalize expenditure and to increase IGR.
She said there was a need to generate data because data is the basis of any revenue collecting efforts, just as there was a need to develop incentives for both federal and state revenue generating agencies to ensure alignment of interest between the two arms of government.
The governors, Ms. Adeosun said, were tasked to focus on property and consumption taxes in their states to help improve their revenue in a fair manner.
“Tax payer education must be intensified and to expand the tax base and ensure that there is a buy-in in the revenue collection agencies from the populace” she said.
State governors were also encouraged to, where possible, rationalize the number of commissioners and general political appointees as well as adopt cost control measures to be able to sustain their states.
NEC also discussed the need to review the counterpart funding needed to access the Universal Basic Education Commission (UBEC) fund from 50 percent to 10 percent.
The states currently need to have a counterpart fund of 50 percent to access the UBEC grants,
Upon review, it would become 10 and 90 percent contribution.
According to the minister, this will release an estimated “58 billion naira that is currently un-accessed”.
The minister said the council discussed that with N53billion, Nigeria could revamp at least 1,000 of the worst classrooms in each of the 36 states.
She said the council also discussed getting a “legislative approval to change the need for counterpart funding on the part of state governments”.
Premium Times
Nigeria’s economic growth in the last quarter stood at 2.1 percent. The total growth recorded in 2015 was 2.8 percent, the slowest since 1999, according to data released by the National Bureau of Statistics, NBS.
Briefing journalists at the end of a two-day National Economic Council (NEC) retreat at the conference hall of the Presidential Villa, the minister of Finance, Kemi Adeosun, said the N350 billion would be spent mostly on capital projects and job creation.
“From the Federal Ministry of Finance in anticipation of the approval of the budget, we have virtually lined up about N350billion which we would be pumping into the Nigerian economy in the forthcoming months.
“We explained our rationale and the processes that we have put in place, safeguards to ensure that this money actually achieve the desired objective, which is to stimulate the economy.
“We are already discussing with some of the contractors who will be paid these monies and the objectives from the overall criteria is how many Nigerians would be re-engaged.
“We are specifically looking at contractors who have laid off staff and how many Nigerians are you going to put back to work as a result of this money that we are planning to release.
“We believe this would bring significant economic activity,” she said.
Ms. Adeosun said the retreat, which was the first by the present administration, deliberated extensively on the drop in revenue, particularly as to how it affects the state government and their ability to pay salaries and fulfil other obligations.
According to her, the general resolve of the council was that there was a need to bring in more cost efficiency in the operations of government, specifically the setting up an efficiency unit within the state governments, to rationalize expenditure and to increase IGR.
She said there was a need to generate data because data is the basis of any revenue collecting efforts, just as there was a need to develop incentives for both federal and state revenue generating agencies to ensure alignment of interest between the two arms of government.
The governors, Ms. Adeosun said, were tasked to focus on property and consumption taxes in their states to help improve their revenue in a fair manner.
“Tax payer education must be intensified and to expand the tax base and ensure that there is a buy-in in the revenue collection agencies from the populace” she said.
State governors were also encouraged to, where possible, rationalize the number of commissioners and general political appointees as well as adopt cost control measures to be able to sustain their states.
NEC also discussed the need to review the counterpart funding needed to access the Universal Basic Education Commission (UBEC) fund from 50 percent to 10 percent.
The states currently need to have a counterpart fund of 50 percent to access the UBEC grants,
Upon review, it would become 10 and 90 percent contribution.
According to the minister, this will release an estimated “58 billion naira that is currently un-accessed”.
The minister said the council discussed that with N53billion, Nigeria could revamp at least 1,000 of the worst classrooms in each of the 36 states.
She said the council also discussed getting a “legislative approval to change the need for counterpart funding on the part of state governments”.
Premium Times
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