• Economic Recession Looms as Analysts Predict -2.9% GDP Growth Rate in Q2

    05/Jun/2016 // 370 Viewers

     

    Analysts at FBNQuest Ltd, an investment and asset management subsidiary of FBN Holdings Ltd, have predicted that, in the second quarter of this year, the economy would record a negative GDP growth rate of -2.9 per cent year-on-year, showing further contraction of the economy from -0.36 per cent of the first quarter (Q1).

    The FBNQuest analysts attributed the envisaged contraction in the economy to further contraction in the oil sector, occasioned by the intensified militant activities against Nigeria’s oil assets in the Niger Delta in recent times, which have drastically affected oil production and exports, coupled with the prevalent volatility in crude oil prices at the international market and its attendant effect on the nation’s oil revenue base.

    Besides, they pointed out that the prevalent negative effect of the forex crisis on the non-oil sector would contribute to the negative GDP output in Q2.

    According to them, “For Q2, we see negative GDP growth of -2.9 per cent year-on-year. The contraction of the oil sector is set to accelerate (from -1.9 per cent year-on-year in Q1), given the sharp rise in pipeline sabotage. The fx and other prevalent shortages will continue to weigh heavily upon most non-oil sectors.”

    The FBNQuest forecast is aligning with the Central Bank of Nigeria estimate and warning that the Nigerian economy might further contract in the second quarter (Q2) of this year into a full blown recession, as some of the conditions which led to the contraction in GDP growth rate in the first quarter remained largely unresolved. The Nigerian economy contracted by about -4 per cent in the first quarter of 2016, signalling the deteriorating economic conditions in the country and its first economic contraction in 25 years.

    According to the banking regulatory authority, which alluded to this when its monetary policy committee met and made decisions on the economy, weak outlook for growth, which was signalled in July 2015 when it warned of the risk of a recession, could extend to the second quarter of 2016.

    It blamed the delayed passage of the 2016 budget for constraining the much-desired fiscal stimulus, which edged the economy towards contractionary output.

    In a similar vein, the Director General, West African Institute for Financial and Economic Management (WAIFEM), Prof. Akpan Ekpo, in reacting to the MPC decisions, had also stated “the economy would soon enter a recessionary phase based on the recent negative GDP growth in the first quarter of 2016 released by the National Bureau of Statistics.”

    Ekpo feared that once the economy entered the recessionary phase, “monetary policy would become ‘ineffective’ in managing the economy.”

    Nevertheless, the FBNQuest analysts highlighted the five worst performing sectors from the national accounts for Q1 2016. “We include what the NBS terms activity sectors, which are often subdivided into segments, and only those accounting for at least 1 per cent of GDP at constant basic prices. For the larger picture, the NBS report shows that the primary sector (agriculture) expanded by 3.1 per cent y/y and the tertiary (services) by 0.8 per cent, while the secondary contracted by -5.5 per cent,” they said.

    The analysts pointed out that this last underperformance was largely due to manufacturing and construction.

    According to them, “Manufacturing contracted by -7.0 per cent y/y in Q1, and its largest segment (food, beverages and tobacco) even more rapidly, by -11.2 per cent. In this context, we would highlight the fx scarcity as the principal driver.

    “Construction contracted by -5.4 per cent y/y, and its main players will be hoping that the FGN can release funds soon for its capital programmes, which are projected to consume as much as N1.6trillion in the 2016 budget. At this point, full delivery appears unlikely.

    “Services expanded modestly in Q1 despite the swing from growth of 6.4 per cent y/y in Q4 to contraction of -11.3% in finance and insurance. We link this steep decline to a combination of substantial fx-denominated loan books, general challenges over asset quality and headcount reductions.” -  This Day


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  • GOV. Badaru Abubakar to N-Delta Militants: There is nothing to avenge

    05/Jun/2016 // 7200 Viewers

     

    We have not abandoned health, education for roads’ 

    By Wale Akinola 

    Governor Badaru Abubakar of Jigawa State is displeased that some militants in the Niger Delta, under the guise of Niger Delta Avengers (NDA), are sabotaging the efforts of the Buhari administration to move Nigeria forward. 

    Abubakar, in this interview, speaks on the renewed militancy in the oil region which has robbed Nigeria of revenues in an austere period and the challenges of his one-year-old administration. 

    Q The state of the nation appears stormy, especially with the worsening economic situation. What is your perspective? 

    The APC governments at the federal level and Jigawa took over at the worst possible period and witnessed a combination of negative and interlinked trends from falling oil prices to currency devaluation and galloping inflation. 

    The fact that some unpatriotic elements who have lost the chance to continue their brigandage are sabotaging our efforts is no longer in doubt, after all, the question needs to be asked, ‘What are they avenging?’ 

    While they were cheering at the loss in revenue from falling oil prices, they have started attacking facilities to cripple production at a time we were just rejoicing at the fact that prices were climbing again. 

    The situation calls for patience and understanding and we are doing everything in conjunction with the Federal Government to put all hands on deck to alleviate the plight of the people. Let me also talk about our modest attempt at complementing the palliatives being rolled out by the Federal Government to cushion the prevalent difficult situation. We have purchased 3,527 tonnes of assorted grains which will be evenly and equitably distributed on the basis of 1 ton, or 10 100kg bags to every one of the 3,527 polling units we have in the state. 

    We also solicit for Nigerians prayers as divine intervention is required to reverse the trend and put this country on the path of progress once more. 

    QWe are not in doubt that the last one year of your regime has been tough, going by the many hurdles militating against governane. Are  we correct? 

    I feel relatively fulfilled coming after the shock and bewilderment that we were in after the swearing in, you know we made some discoveries during the transition period, but it was only after we took over that we realized the extent of the financial mess that we inherited, and we had to quickly revert to survival mode. Even the previous administration was counting the days till we crash-landed from the enormity of the financial burden, because they knew what they left behind, but we thank Allah for his mercies, we weathered the storm, we’ve put the state on a reasonable solid and sustainable expenditure framework relative to our present earnings and we are hoping for better days ahead. 

    Q How then have you been able to cope with these harsh economic realities as far as what accrued to your state is concerned? 

    Like I said earlier we switched to survival mode. In May 2015 we had less than N17 million in the treasury and I’m talking about the total amount of cash that was available to the state. We had salaries to pay,scholarship arrears and exam fees owed to WAEC and NECO, the Hajj operation preparations had started in earnest and the former government, after trying unsuccessfully to “borrow” from the contributory pension fund, simply achieved this through the back door by refusing to pay the state’s own contribution for almost 11 months. 

    To compound issues, contractors started demanding for payment of their liabilities which amounted to over N14 billion in vouchers awaiting cash backing in the treasury and close to N100 billion in ongoing projects. I had to call major stakeholders and lay bare the financial situation to them and told them I had the capacity to deal with this but it will not be easy or painless. I got the mandate I needed and immediately started a massive cost cutting exercise starting from the Government House. 

    You see if I say I’m cutting my salary and that of the deputy governor by half, it would translate to about N12 million annually and our deficit is in nine figures, so that won’t help our case. We had to look at holistically reducing the cost of doing government business and it was not difficult to find areas because the previous regime was living in a fool’s paradise, just increasing recurrent spending exponentially in direct proportion to the windfall coming in from the Federation Account. 

    Q So, how are you coping with the huge contractual liabilities? Is any work going on in the state at all? 

    As soon as we saw the results of our cost realignment strategy working, we decided that since we were able to meet our recurrent expenditure, we should prioritise the ongoing projects accordingly and this was very difficult politically because the penchant is for supporters to say, ‘let us abandon so and so  work and do our own projects’, so I had to be very firm. 

    It hurts when I see people hiring buses at great expense to go and thank a governor they elected because he has built a road, or school or provided water. It is their money and their mandate and  the least the governor can do; otherwise you have no business in Government House. 

    I had to explain to supporters that the previous government’s projects were started with Jigawa funds and it would be irresponsible to abandon them and waste public money in starting new ones, so a committee verified the projects and we prioritized them in order of public impact and stage reached. Some that were hurriedly and improperly awarded to friends and family we threw out. I then called the contractors personally and explained our situation to them. ‘The country is broke, there may not be jobs for any of you for some time, but I am wiling to assure you continuity and prompt payment if you will give Jigawa a discount’. It was very tough, and I had to assure them that they have my protection and I am not expecting a percentage from anyone and neither is any of my children, commissioner or government official, and if that happens they have my direct line. This was how we got an average of 17% discount amounting to almost N5 billion for projects awarded as far back as 2013 in some cases. 

    Q Considering the dire financial situation generally, are you not abandoning the other sectors when you focus on completing roads? 

    We are not abandoning any sector, our focus is human development in all ramifications with the ultimate aim of reducing the poverty level and that is why I told you that even the roads we are continuing were selected based on public impact, opening up communities, providing access to markets for their farm produce and linking major towns and communities. The other critical sectors in this chain are health and education. We must educate our people and as the saying goes health is wealth. 

    In the health sector we are focusing on primary health care delivery to devolve smaller facilities spread out at the grassroots level as opposed to mega hospitals that are costly and very inefficient since all cases irrespective of severity are handled at that level. Typically, close to 80% of patients can be handled at the primary level for malaria, antenatal, etc with only serious cases referred to the hospitals. Most importantly, we can now achieve eligibility in accessing funds from the National Health Fund to augment our efforts at the state level. To strengthen this basic level, we have commenced  the construction of 27 basic health clinics in each local government at the cost of N424,980,000.00 and 27 units of midwives’ quarters in hard- to-reach primary and basic healthcare centers at the cost of N203,257,692.00. We have also embarked on renovation and improvement of hospitals in Gwaram and Birniwa with the provision of an operating theatre at the total cost of N194,918,946 as well as several smaller facility interventions in Sarawa, Majeri, Kununu and Katsinawa and renovation of 25 health facilities worth N25 million in Birnin Kudu, Garki, Gwaram, Jahun and Maigatari local government areas. 

    Q You mentioned health and education as priorities… 

    Education was a sector I believe was also neglected perhaps because of the adage ‘you can’t value what you don’t have’. Immediately after we were sworn-in, I was amazed to find  that counterpart funding for SUBEB and UBE were unpaid for two years, which meant the last time primary school structures received any decent attention was in early 2013. This government had to retroactively pay up counterpart funding for the 3rd and 4th quarter of 2013, the 1st, 2nd, 3rd and 4th quarters of 2014 resulting in the injection of N3.1 billion into the basic education sector within 11 months. This translated into the provision of 16,599 sets of classroom furniture and the construction and renovation of 1,793 classrooms. We had to also clear a backlog of scholarship payments from the 2014/2015 academic year totalling N500,478,356. We spent money on data acquisition relating to the quality and number of students , teachers and facilities in conjunction with the DFID ESSPIN program to enable us address problems in the sector in a targeted and specific approach instead of ploughing money in an uncoordinated and erratic manner with no results. To ensure students welfare, we paid out  N882,425,839 within the last 11 months in scholarship funds, and introduced an e-platform to eliminate delays in future payments. We are also testing and deploying various e-learning initiatives to address the issue of the very serious deficit in quality teaching at the basic level. Jigawa like most other states is in serious need of qualified teachers that are simply not available due to the systemic collapse of teacher-education and training nationwide and the simultaneous demand by private schools that continue to grow at an exponential level to fill the educational void. 

    I believe technology holds the key to maximizing teaching resource availability through distance leaning, visual and electronic teaching aids as well as networking of schools to avail them concurrent use of electronic educational material to augment conventional methods. To support these and other tech dependent initiatives, we have reinvested in resurrecting Galaxy ITT, the state owned internet provision and IT services firm. 

    The company is currently testing a city wide wireless network covering the whole of Dutse, and with the renewal of their national ISP license will begin to provide quality internet service provision to all our major towns and indeed beyond the State’s boundaries on a commercial basis. So as you can see we haven’t abandoned education for roads! 

    Q In your inaugural speech, you mentioned that agriculture was going to be used to build a sustainable local economy. Is that process on course?

    Very much so, we have no option because it is the only sector where we have  comparative advantage at the moment. I said I will focus on attracting large scale agricultural investment because we must leapfrog and catch up with global best practices. 

    If you have a look at our statistics, we are at the bottom of almost every yield table for our major crops despite years of government and development partner intervention. The only game changer I can see is private sector involvement. if we don’t begin to look at agriculture from a business perspective, we cannot be competitive and no amount of government control or protection can help a farmer producing 2.5 tons a hectare against his counterpart in Thailand or Brazil producing 10 tons per hectare twice a year. 

    In pursuit of this, we have adopted the international principles of large scale agricultural investment (RAI) and developed a State Land Acquisition and Resettlement Framework (LARF) to achieve a balance between the investors need for large scale land and the citizens right to minimal disruption of lifestyle and livelihood. This has resulted in the adoption of out-grower scheme models involving small holder farmers in all our major large scale agricultural partnerships which include the Dangote Rice Project that will eventually cover about 30,000 hectares and The Lee Group sugar project covering about 12,000 hectares. 

    During the recent fuel shortage which saw many individual farmers abandoning their cultivation due to lack of fuel for irrigation, the members of the out-grower cooperatives had the protection of group logistic dynamics that guaranteed all inputs including fuel as part of the agreement. 

    We have adopted the same approach for other farmers outside the out-grower framework by clustering small holder farmers in all 287 wards into 50-hectare clusters per ward with a maximum of three groups per cluster to accord them the same benefits and advantages of the out grower program under a state organized initiative. For effective and uninterrupted supply of inputs, we are recapitalizing JASCO to the tune of N200 million to strengthen its capacity to provide quality consumables at affordable prices to the cluster groups, and 450 motorcycles have been provided to extension workers that are currently undergoing training by NIRSAL to improve their mobility and capacity to provide extension services. Over N100 million is being spent to rehabilitate about 87 tractors spread over 27 local governments to provide mechanisation. We are also expanding the SLTR program which will simplify acquisition of title to land and focus on small holder farmers to enable them unlock the capital potential of their landholding at an affordable price. 

    Q So this is part of the general GIS mapping that we hear is going to cover the whole state? 

    Definitely. We have already started GPS plotting of farmland under the dry season fertilizer distribution where 4,000 tons of fertiliser valued at N400 million was allocated in an equitable manner with each farmer getting fertilizer based on his measured and plotted land holding. This will be embedded in the full GIS project state wide. 

    Q But when we came in sometimes last year, we saw residents pushing carts in search of water, has anything effort been done to solve this perennial water shortage in the state? 

    Water and sanitation is another key area in our list of prioritized intervention sectors. What we found out is that no maintenance had been carried out on our water facilities in three years. The rapid water intervention scheme was therefore our first major infrastructure rehabilitation effort, and we expended N1.9 billion of which N636 million is recurrent because of the motorized nature of most of our water facilities. 

    Credit: Vanguard


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  • JUST IN: Again, Naira sinks, exchange rate outrageous as forex scarcity continues (See exchange rate)

    06/Dec/2016 // 845 Viewers

     

    PARIS, DECEMBER 6, 2016: (DGW) Nigerian domestic currency, the Naira has fallen again on Monday against all major currencies thus causing and anxiety outrage among Nigerians at home particularly importers and Nigerians in the diaspora.

    Reports reaching our newsroom from Nigeria say the Naira   slid to 485 against the dollar and 600 against the British pound on the parallel market.

    At the official side of the market, the naira depreciated from 305 to 315 per dollar, while the pound went for N401.

    This is coming at a time when the Central Bank of Nigeria (CBN) is making special forex auction for oil exporters in the country.

    With the oil prices on the rise at the global market, and Nigeria’s oil template at N285/$1, the interbank market is seen as incapable  of meeting the needs of oil exporters who need forex at N285/$1 not the market’s N315/$1.

    This has necessitated the CBN auction, which is expected to trade dollars below N300.

    Vice-President Yemi Osinbajo, in an interview with Reuters, said “his office was working with the central bank to make the foreign exchange market more flexible and more reflective of actual demand and supply”.

    This year has seen the local currency depreciated the most in its 43-year history, opening at 197 in January at the official market and 265 at the parallel market.


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  • Uneasy silence hits Aso Rock as foreign economic institute descends on Buhari over economic collapse

    06/Sep/2016 // 1181 Viewers

     

    PARIS, SEPTEMBER 6, 2016: (DGW) PRESIDENT  Muhammadu Buhari has come under intense attack by  The West African Institute for Financial and Economic Management (WAIFEM) and the Central Bank of Nigeria for the current economic recession in Nigeria.

    Speaking through its Director-general, Professor Akpan Ekpo, blamed Nigeria's economic situation the maddening delays in passing the 2016 budget  together with the  CBN’s monetary and foreign exchange policies.

    Speaking further Prof. Ekpo said that, “There was a near absence of fiscal policy – the economy lacks the necessary fiscal buffers. Money and exchange rate policies were the only voice. Rather than implementing quantitative easing, the CBN was interested in tightening monetary policy. When an economy is almost in a recession, monetary expansion would help towards recovery,”
     
    “When a commodity is in short supply, market forces cannot determine the ‘correct’ value. The only source of foreign exchange for the economy is crude oil export, hence unrealistic assumptions under a competitive market cannot work in the foreign exchange market,” he added.

    “The delay in adjusting the band of the value of the naira to the dollar, when the market provided a guide through scarcity, heightened the crisis. If recession persists, monetary, fiscal policies would be ineffective.”

     “I hate to disappoint Nigerians, the private sector cannot get us out of the recession. Government must lead for the private sector to follow until recovery sets in. As part of stimulating aggregate demand, the social programmes in the budget must be implemented urgently.

    “Furthermore, government has no choice but to borrow externally and domestically to spend and
    get the economy out of the recession. “Our economy consumes what it does not produce, hence there is need for a re- orientation for citizens to prefer locally produced goods and services. Heavy tariffs must be placed on imported goods and services. Lending rates are just too high to revamp the real sector.”


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  • Again, Naira falls abysmally low against major currencies, see exchange rate

    07/Nov/2016 // 1602 Viewers

     

    PARIS, NOVEMBER 7, 2016: (DGW) THE  Naira has  again fallen at the inter-bank and the parallel markets respectively on Monday, the News Agency of Nigeria has reported.

    The naira exchanged at N350 to a dollar from N328 it traded last Friday.
    At the Bureau De Change (BDC) segment, the naira closed at N385 against the dollar, CBN rate, while the Pound Sterling and the Euro closed at N564 and N510 respectively.

    Trading at the parallel market saw the naira exchanged at N470 to the dollar, while the Pound Sterling and the Euro traded at N560 and N510 respectively.

    Traders at the market express hope that the naira would see better days as Diaspora remittances was expected to boost liquidity at the yuletide season.


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  • Volkswagen to start recalling cars in January

    07/Oct/2015 // 137 Viewers

    Volkswagen is to start recalling diesel cars fitted with emissions test-cheating software from January. The carmaker's new chief executive, Matthias Mueller, made the comments in an interview with a German newspaper, ahead of a deadline to submit the plan to regulators. Also today: the French bakers fined for providing customers with their daily bread.


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  • Air France pilots call for French government to intervene in dispute

    07/Oct/2015 // 170 Viewers

    After the violent scuffles at a meeting between unions and Air France management on Monday, the union representing pilots has called for the French government to intervene in the dispute over the carrier's cost-cutting plans. The head of the SNPL union says the state should be represented in a fresh round of talks.


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  • BRIEF-NPF Microfinance Bank posts FY pre-tax profit of 689 mln naira versus 617 mln naira last year

    08/Apr/2016 // 157 Viewers

     

    April 8 (Reuters) - Npf Microfinance Bank Plc :

    * Fy pre-tax profit of 689 million naira versus 617 million naira last year

    * Fy gross earnings 2.593 billion naira versus 2.135 billion naira last year Source text for Eikon: Further company coverage:


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  • IMF Chief Christine Largarde's devaluation proposal flawed but Nigeria's economy could be in serious trouble

    08/Feb/2016 // 337 Viewers

     

    Nigeria's foreign reserves are feeling pain of both its reliance on oil for forex inflows and its attempts to arrest the slide in the Naira as oil prices tumble
     
    The IMF Chief Christine Largarde's view on Nigeria's economic diversification is misleading and can at best be described as a 'cosmetic assessment' in terms of revenue generation.— Ken UwotuLONDON, UNITED KINGDOM, February 8, 2016 /EINPresswire.com/ -- Nigeria's foreign reserves are feeling the pain of both its reliance on oil for forex inflows and its attempts to arrest the slide in the Naira as the price of oil continues to spiral downwards. The Central Bank of Nigeria has warned a recession is imminent if proactive steps are not taken to revive growth in key economic sectors as the country face its worst financial crisis in years. Nigeria’s economic growth in the past decade has not always been about oil but the government’s inability to tax services and agriculture industries has left it heavily reliant on revenue from oil.
     
    The fall in oil price has created some challenges for the government with the country's budget deficit expected to double to 2.2 trillion naira ($11bn, £7.4bn) this year. In a reaction to the global oil crisis President Muhammadu Buhari has stated his government would seek funding overseas of 900bn naira as well as 984bn naira domestically in an attempt to plug gaps in the budget.
     
    The International Monetary Fund (IMF) Managing Director, Mrs. Christine Largarde on her recent visit to Nigeria stated “The economy is well diversified; it is no longer dominated by agriculture and oil with services accounting for almost half of Gross Domestic Product (GDP), including a significant home-grown film industry and innovative start-ups from fashion to software development”. Mrs. Christine Largarde's view on Nigeria's economic diversification is misleading and can at best be described as a 'cosmetic assessment' in terms of revenue generation. The Nigerian government has failed to generate taxes from agriculture and services industries and according to the World Bank, Nigeria’s tax revenue is one of the lowest in the world today. Some would argue true diversification is measured by a country’s export volumes and the overall contributions of export revenue to a nation’s foreign reserves. Nigeria derives 90% of its foreign exchange from crude oil while all other sectors collectively contribute just 10%.
     
    The IMF has helped out a number of African nations in difficult times, it approved a $918 million bailout package for Ghana in April 2015 to restore debt sustainability and macroeconomic stability but it hasn’t always been a beacon of support in Africa; the IMF backed a structural adjustment program in Nigeria which failed to address a number of economic problems. Instead, external debt swelled, the fiscal gap widened and economic growth became far-fetched. It is therefore prudent for the Minister of Finance, Mrs Kemi Adeosun and the Nigerian government to take on board advice offered by international financial organisations but the Minister must review both the macroeconomic and microeconomic factors that affect Nigeria's economy before deciding on a fiscal policy and strategy to tackle the challenges facing the economy.
     
    Currency devaluation is intended to make exports become cheaper and more competitive to foreign buyers thereby providing a boost for domestic demand; higher level of exports should lead to an improvement in the current account deficit however, the devaluation of Nigeria's currency, the Naira may fail to deliver these benefits because revenue generated from Nigeria's exports is currently in decline with non-oil exports dropping significantly from $664 million in the second quarter of 2014 to $391 million during the corresponding period of 2015.
     
    The Nigerian government favours forex restriction over the devaluation of the Naira but the government may be forced to officially devalue the Naira if the price of oil continues to fall and the Central Bank of Nigeria can no longer justify using the country's fast depleting foreign reserves ($29.13 billion as of 29/12/2015) to continue propping up the Naira. The present restrictions on the autonomous foreign exchange market by the government should only be considered as a temporary measure as this approach may significantly affect Nigeria’s already dwindling export earnings.
     
    The Oil Petroleum Exporting Countries (OPEC) lead by Saudi Arabia is desperately trying to recover market shares from US Shale oil producers; this battle for dominance in the oil market has led to the drastic drop in oil prices. Africa's biggest economy Nigeria could be heading into uncharted territory as the price of oil has now dropped to $30.98/barrel, a price less than Nigeria's total cost of oil production at $31.6/barrel (source - OPEC). The national budget recently submitted to the Nigerian parliament by President Buhari is based on an oil price benchmark of $38 per barrel.
     
    Nigeria's budget shortfall of $11 billion has forced the government to source for emergency loans totaling $3.5 billion from the World Bank and the African Development Bank. The IMF and World Bank have long been advocates for the devaluation of the Naira and are mostly likely ask Nigeria to officially devalue its currency as a prerequisite for any emergency loans. Mrs. Kemi Adeosun, Nigeria's Finance Minister further clarified the government’s position on the issue of emergency loans; she states the government seeks loans at "concessionary rates" as low as 1.5 percent from international agencies to fund infrastructure projects before returning to the eurobond market. The Nigerian government is now in exploratory talks with China Exim Bank for a possible loan.
     
    The Nigerian government is likely to stand firm on its policy of attempting to spend its way out of its current economic crisis. The government intends to borrow money in the form of loans to try and plug the financial gaps in the 2016 budget with the hope oil prices will return to 'profitable levels' for the country in the near future however with the demand for oil in China slowing down and Iran set to pump 500,000 additional barrels of oil into the market a day, it is unlike oil prices will rise significantly in the short to medium term.
     
    Ken Uwotu 
    Political Analyst On Nigerian Affairs, London


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  • Naira crashes, trades at N250 against US Dollar

    09/Dec/2015 // 229 Viewers

     

    PARIS, DECEMBER 9, 2015: Reports reaching us Wednesday say Naira, the Nigerian domestic currency hit another record low against the US dollar. Naira traded N250 to $1 at the parallel market.

    Financial experts attribute this to steep  drop in Nigeria's foreign reserve probably caused by the dwindling oil prices. The British pound traded at N400 at the parallel market.

    Nigeria's Central Banks says the Naira crash has nothing to do with the dwindling foreign reserves insisting that the bank refused to make the dollar available to Bureau de Change operators, a source told our reporter in Lagos.

    However, the IMF and Nigerian financial experts  have been mounting pressure on the Buhari administration to further devalue the Naira in order to achieve equilibrum price against the dollar, but the president has consistently refused this.

     


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