Credit to the government rose month-on-month, MoM,  by 2.0 percent to N19.98 trillion in April from N19.58 trillion in March.

Data from the Central Bank of Nigeria, CBN, Money and Credit Statistics for April showed mixed trend in credit to the government since January where it stood at N23.5 trillion.

According to the CBN,   credit to the government grew to N33.92 trillion in February and fell to N19.58 trillion in March but went up to N19.98 trillion in April.

The data also showed that credit to the private sector rose MoM by 2.4 percent  to N72.9 trillion in April  from N71.2 trillion in March. This resulted in a 2.31 percent MoM rise in net domestic credit to N92.9 trillion in April from N90.8 trillion in March.

Analysts at Cowry Asset Management Limited attributed the March decline in credit to the government to the effect of policy rate hike by the CBN.

Commenting in the company’s  weekly financial Market review and outlook, they said: “This could be linked to the effect of the policy rate hike by the monetary authority on the economy where the CBN’s  Monetary Policy Committee (MPC) has raised interest rate by 600 basis points to 24.75 percent so far in 2024 from 18.75 percent  just to achieve price stability.  

“The full impact of the policy rate hike by the central bank will continue to be seen in the economy as borrowing costs trend higher while businesses seek alternative funding options in the local debt market through the issuance and raise  of commercial papers for the short term in order to keep business operations afloat.”

However, the increase in credit to the government in April contradicts analysts’ prediction of a continuous declining trend.  

“While we think a continued slow  growth in total credit to the government and private sector will continue, businesses will explore further funding options  amidst rising prices. On the other hand, we think the federal government will continue exploring various funding options with lower debt servicing requirements just to meet its project funding and investment obligations”, analysts at Cowry Asset projected.

Nollywood actress Eniola Badmus has commended President Bola Ahmed Tinubu’s administration for bringing “significant progress and hope” to Nigeria. 

Badmus shared her views while congratulating President Tinubu on his first year in office.

Recently appointed as the Special Adviser on Social Events and Public Hearings to the Speaker of the House of Representatives, Tajudeen Abbas, Eniola Badmus expressed confidence in Tinubu’s ability to drive the nation forward. 

She emphasised that Nigerians are optimistic about continued success and growth under his leadership.

On her Instagram page, the movie star wrote: “Congratulations on your first year in office, @officialasiwajubat.

“Your dedication and leadership have brought significant progress and hope to our nation. We look forward to continued success and growth under your guidance.”

The Minister of Works, David Umahi, has said that most people he helped to power during the 2023 general elections now avoid him.

Umahi said this in Abakaliki, Ebonyi State on Thursday while speaking with newsmen.

The minister said that even National Assembly members whom he helped to power were among those who now avoid him, adding that he was not disturbed by their behaviour.

“It is only Chief Onyekachi Nwebonyi who will openly acknowledge that I am his father and boss.

“The others feel that by doing so, the state governor, my successor, will be angry with them.

“The governor cannot do that because he too openly acknowledges that I was instrumental to his emergence,” he said.

He said that the development made him stop having political godsons but has opted for political friends.

“I will fight anybody who makes trouble with the governor because he deserves our respect.

“I have done my bit, have left the stage and have to respect myself,” he said.

Umahi said there were usually crises between the predecessors and successors, adding that “I am however not available for such because I have been so blessed in life by God.

“There are always pathways to successes and failures and when you dig for someone to fail, you have already failed,” he said.

The minister vowed to stick with Nwifuru for eight years and thanked God for giving the governor the grace to unite all leaders of the state.

“The issue of the leaders staying together for long is not our business but I have known the governor for 16 years and will continue to support him.

“I will never regret making him my successor as he, alongside few others, stood with me during the hard decision of defecting to the APC,” he said.

Umahi previously served as the senator representing Ebonyi South senatorial district from June to August 2023. Before his tenure in the Senate, he was the governor of Ebonyi State from 2015 to 2023 and served as the deputy governor from 2011 to 2015.

(NAN)

The Federal Government has secured a $500 million World Bank loan to empower Nigeria's energy distribution industry, the Bureau of Public Enterprises stated on Thursday.

The BPE announced that the financing has been secured to help address the numerous issues that Discos face in the country.

“In a strategic move to address the identified gaps in the electricity distribution companies, the Federal Government of Nigeria has secured a $500m loan from the World Bank,” BPE stated in a statement issued in Abuja by the Head of Public Communication, Amina Othman.

It added, “Approved on February 4, 2021, by the World Bank board of directors, this funding supports the Nigerian Distribution Sector Recovery Programme aimed at improving the financial and technical performance of the Discos.

“The DISREP is designed to enhance the financial and technical operations of the Discos through capital investment and the financing of key components of their Performance Improvement Plans, which have been approved by the Nigerian Electricity Regulatory Commission.”

The Bureau stated that key areas of improvement include bulk procurement of customer/retail metres and metre data management systems, implementation of a Data Aggregation Platform, and strengthening governance and transparency within the Discos.

On the programme components, BPE said the DISREP comprises two main components.

It said the first is the programme for results, with an allocation of $345m, adding that the purpose is to support the implementation of selected PIP components. The Bureau of Public Enterprises is to implement this.

The other component is the Investment Project Financing, with an allocation of $155m and the purpose is to finance the procurement of metres, a data aggregation platform, and technical assistance.

“The DISREP loan, particularly the Investment Project Financing component, is expected to significantly benefit the Nigerian Electricity Supply Industry by closing the metering gap, reducing Aggregate Technical, Collection, and Commercial losses, and improving remittances and liquidity for the Discos.

“Others include to enhance the reliability of power supply, as well as increase transparency and accountability within the Discos,” BPE stated.

It said the $500m DISREP loan from the World Bank offers concessional financing with more favourable terms than commercial bank loans.

“This will enable the Discos to invest in critical distribution infrastructure, improve ATC&C losses, increase power supply reliability, achieve financial sustainability in the power sector, and enhance transparency and accountability,” the bureau stated.

It noted that significant progress has been made in the preparation of the DISREP programme with several key milestones achieved and approved by the Federal Executive Council on August 3, 2022.

It said there has been the execution of the Financing Agreement by the Federal Ministry of Finance, Budget and National Planning, and the World Bank, and adoption of the Programme Operations Manual by BPE and Transmission Company of Nigeria.

The government has also obtained a legal opinion from the Attorney-General of the Federation and executed the Subsidiary Loan Agreement, adding that the effective declaration of the DISREP Programme was done on January 31, 2023, while the inauguration of the DISREP Technical Committee was on May 6, 2024.

It said the inclusion in the Federal Government borrowing plan was approved by the Senate Committee on May 16, 2024.

“To ensure repayment assurance, the Bureau of Public Enterprises sought and obtained approval from the Nigerian Electricity Regulatory Commission and the National Council on Privatisation for a structured repayment hierarchy.

“This structure prioritises payments as follows: 1. Statutory payments (taxes); 2. Repayment of CBN market loans; 3. Market obligations; 4. Repayment of DISREP loan; 5. Discos’ net revenue. This structured repayment plan aims to mitigate risks associated with repayment uncertainty and defaults, with regulatory sanctions imposed for any defaults,” BPE stated.

Power distribution companies in Nigeria have been widely criticised as being the weakest link in the country’s power value chain. This is due to many lapses on the part of the Discos.

For instance, about eight million registered power users out of an estimated 13 million electricity consumers are not metered by Discos. Also, there are complaints of poor power supply to many locations by Discos. Consumers on estimated billing also accuse Discos of extortion, among other concerns.

Nigeria got 11 power distribution companies after electricity generation and distribution arms of the industry were privatised in November 2013, and since then, the Discos have been struggling to meet the demands of end users.

House of Representatives has stepped down an amendment to a motion seeking foreign intervention to address Nigeria’s insecurity issues.

The lawmakers declined an amendment proposed by Hon. Ahmed Jaha (APC, Borno), which called for the invitation of foreign mercenaries to assist in combating the issue.

Jaha stated that despite ongoing efforts by security agencies over the years, results have been insufficient, hence the need for Nigeria to engage foreign contractors to assist in combating insecurity across the country.

“During the period of insecurity in the northeast between 2020, there was no significant hunger in the country. However, when the bandits realized their actions were causing more hunger than insecurity, they expanded their operations to the southeast and southwest.

“Given the insurgency we’re grappling with, it’s prudent to seek assistance from other nations. Nigeria lacks the power and influence of countries like Ukraine and Russia. Bringing in machinery to tackle insecurity is essential to prevent a worsening hunger crisis next year. The current strategy of targeting farmers is crippling agricultural productivity. While we appreciate the efforts of our security agencies, additional support is urgently needed.”

But, Hon. Abbas Adigun, member representing Ibadan North East/South East Federal Constituency of Oyo State, strongly opposed the suggestion of employing foreign mercenaries, stating that it would be a source of embarrassment for the nation.

“We must prioritize bolstering our security agencies’ capacity and ensuring their personnel’s welfare. When they bravely venture into the field, there’s a stark reality: a 50% chance they won’t return. We must also consider the welfare of their families left behind.

“We’re sorely lacking the modern equipment needed to confront insurgents effectively. Despite discussing security measures in the 9th Assembly, no tangible actions have been taken. That’s why I’ve chosen not to attend any security meetings in this assembly.

“Requesting another nation to supply us with machinery is a slight to our stature as a leading African nation. We possess the capability within our security agencies, augmented by the expertise of retired service chiefs, to undertake such tasks internally.

“Many of Nigeria’s security challenges stem from its poorest and least educated regions. These issues are the fruit of seeds planted long ago. Nigeria must prioritize investments in education and alternative livelihoods over criminal activities,” he said.

Other lawmakers also followed his argument, dropping the amendment while the motion was adopted with other prayers.

Adopting the motion, the House decided to meet with the President to find solutions to the insecurity challenges. It urged police authorities to appropriate funds to repair damaged security assets nationwide.

The motion’s mover, Abdullahi Dabai from Katsina State, lamented that the people of his constituency are living in a state of fear owing to constant attacks by bandits.

“Families have lost their loved ones, their means of livelihood, and their homes. The psychological trauma inflicted on the survivors, particularly those who have lost family members or witnessed the destruction, cannot be overstated. The kidnappings have further exacerbated the situation, with families anxiously awaiting the return of their loved ones,” he said.

No fewer than 40 directors failed the qualifying examination for appointment to the position of permanent secretaries.

A total of 92 directors were listed to sit the examination which took place on May 27, 2024.

While 40 directors scored below 50 per cent, which indicated failure, according to the result of the examination obtained by our correspondent in Abuja, three were absent while one director could not complete the exam.

A May 28, 2024 memo by the Office of the Head of Service tagged, “HCSF/ CMO/ AOD/012/IX/59’ noted that the next test will be an ICT-based test.

Recall that the Federal Government, through the Office of the Head of Civil Service, had earlier announced the commencement of the process for the appointment of new permanent secretaries to fill existing and impending vacancies for Akwa Ibom, Anambra, Bauchi, Ebonyi, Jigawa, Ondo, Zamfara states, South-East and South-South zones.

The Head of Civil Service of the Federation, Folashade Yemi-Esan, disclosed this in a circular addressed to the Chief of Staff to the President, Femi Gbajabiamila, the Secretary to the Government of the Federation, George Akume, among others.

In the memo, which she personally signed, Yemi-Esan noted that only directors who attained the position of substantive director on or before January 1, 2022, would be considered in the process.

The circular dated April 19, 2024 and tagged “HCSF/CMO/AOD/012/IX/24 read: “Following the approval of Mr. President, the Office of the Head of the Civil Service of the Federation is commencing the process of the appointment of Permanent Secretaries in the Federal Civil Service in respect of existing and impending vacancies for Akwa-Ibom, Anambra, Bauchi, Ebony, Jigawa, Ondo, Zamfara States, South-East and South-South geo-political Zones, whose Permanent Secretaries have retired or will retire between April and September, 2024.

“Consequently, the mainstream Federal Civil Service officers who meet the following conditions are eligible to participate in the exercise.”

Giving the qualifications, the memo stated that candidates must “have attained the position of substantive Director on Salary Grade

Level 17 on or before 1st January, 2022; have updated their records on the IPPIS Verification Portal; are from the states or geopolitical zones listed in paragraph one above; and are not retiring from service earlier than 31st December 2025.”

The memo also stated that officers undergoing disciplinary procedures were excluded from the exercise.

In a recent post on his social media account, Nigerian comedian Seyi Law expressed admiration for President Bola Tinubu’s first year in office, highlighting the ongoing progress and areas for improvement.

Celebrating the president’s dedication to repositioning Nigeria, Seyi Law commended Tinubu’s commitment to creating a nation of equal opportunities for all.

He emphasized that the renewed hope agenda is still alive and well, led by the courage of supporters like himself.

Seyi Law also commended Tinubu for the successful launch of the student loan program and the impact of the 3MTT program in information technology.

He acknowledged the progress made in security matters but also noted that there is still work to be done.

He also applauded Tinubu’s achievements in the Ministry of Interior Affairs, including the ease of passport procurement and improved security at airports through the introduction of e-gates. However, he stressed the need for urgent intervention in the agricultural sector.

Seyi Law further called on the presidency to address pressing concerns such as the new minimum wage and door availability for infrastructural development.

he congratulated Tinubu on reaching the milestone of his first year in office and expressed hope for continued blessings on Nigeria.

On his X handle, he wrote:

“The journey to reposition Nigeria has been arduous but your unwavering dedication is truly commendable. I firmly believe in your ability to transform Nigeria into a nation that provides equal opportunities for all. The renewed hope agenda remains alive and well, fuelled by the courage that sustains us, your supporters.”

“I extend my personal salute for the successful launch of the student loan program. Your efforts in the field of information technology through the 3MTT program have left a long-lasting impact as evidenced by the beneficiaries who stand as testimonials to your commitment,” he said in part.

He added, “Turning to security matters, the military has made significant strides, although there is still work to be done. In the Ministry of Interior Affairs, your achievements are noteworthy. Nigerians now celebrate the ease of passport procurement and improved security at airports, thanks to the introduction of e-gates.”

However, Your Excellency, alongside our celebrations, there are pressing concerns. Urgent intervention is needed in the agricultural sector and we eagerly await news regarding the new minimum wage. While infrastructural development is commendable, addressing door availability remains a critical priority. In conclusion, I extend heartfelt congratulations on reaching the milestone of your first test in office. May God continue to bless Nigeria”.

Nigeria and other West African countries are expected to see their growth rates rise from 3.6% in 2023 to 4.2% in 2024 and 4.4% in 2025. This projection was shared by Kevin Urama, the Vice-President and Chief Economist of the African Development Bank (AfDB), during the African Economic Outlook 2024 event on Thursday.

The announcement was made at the bank’s 2024 Annual Meetings in Nairobi, Kenya. The event’s theme was “Driving Africa’s Transformation: The Reform of the Global Financial Architecture.”

Urama highlighted that West Africa’s growth is set to increase, moving from an estimated 3.6% in 2023 to 4.2% in 2024, and further solidifying at 4.4% in 2025. This marks a 0.3 percentage point increase over the January Macro Economic Outlook (MEO) projections, driven by stronger growth in major economies like Côte d’Ivoire, Ghana, Nigeria, and Senegal.

He emphasized that African economies have shown resilience despite multiple challenges, with average growth expected to stabilize at 4.0% in 2024-2025, up from 3.1% in 2023. The average real Gross Domestic Product (GDP) growth slowed from 4.1% in 2022 to 3.1% in 2023, primarily due to high food and energy prices stemming from Russia’s invasion of Ukraine.

Dikko Radda: Insecurity would be difficult to address without alleviating poverty
Other contributing factors include climate change, extreme weather affecting agriculture and power generation, and political instability in some countries. However, real GDP growth is projected to rise to 3.7% in 2024 and 4.3% in 2025, surpassing the 4.1% recorded in 2022.

Urama noted that the growth rebound will be driven by East Africa, with an increase of 3.4 percentage points, and Southern and West Africa, each rising by 0.6 percentage points. In 2024, 40 countries are expected to show higher growth than in 2023, with 17 economies projected to grow by more than 5%, potentially increasing to 25 by 2025. Africa is set to retain its position as the second fastest-growing region after Asia in 2024-2025, with GDP growth exceeding the global average of 3.2% in 2024.

For oil-exporting countries, average growth is expected to decline from 3.7% in 2023 to 3.5% in 2024, but it may rise to 4% in 2025. This slowdown in 2024 is due to lower oil production targets set by OPEC and issues such as the vandalism of an oil pipeline in South Sudan and uncertainties surrounding Angola’s oil exports after leaving OPEC.

In contrast, growth in non-oil resource-intensive economies is projected to improve significantly from 0.3% in 2023 to 2.7% in 2024, and stabilize at 3.3% in 2025. This sharp increase is mainly due to a rebound in China’s demand for metals and minerals, driven by expansions in smart grids and construction activities.

Dikko Radda, governor of Katsina, says it would be difficult to address the issue of insecurity without taking measures to alleviate poverty.

Speaking with journalists on Wednesday, the governor unveiled his administration’s accomplishments in curbing poverty in state since his assumption in office. 

“If you are unable to stop or to reduce poverty and provide the teaming youths job opportunities, it will be very difficult to address the issue of insecurity,” NAN quoted the governor as saying.

“It is true that you don’t need anybody to tell you that there’s poverty. We also understood that the problem of insecurity is attached to the problem of banditry and criminalities that we have in our region. We promised to approach the problem in two ways, kinetic and non-kinetic approach.

Radda said it established the Katsina state enterprise development agency, aimed to support small and medium-sized enterprises, particularly micro and small businesses

He said the state government set aside a budget of N3.4 billion in collaboration with the Bank of Industries as managers.

“Just in the last three weeks, we launched the training of 3,000 youths across the state on mechatronics, who would be attached to various workshops.

“After their graduation, we’ll support them to set up their own workshops, so that they can provide job opportunities for our teaming youths in the state.

Radda said the state is implementing community centers in villages to develop, provide employment, and support to young men and women in localities.

“We concentrating on the frontline and vulnerable local governments so that the government will address that issue squarely,” the governor continued.

“Second way of fighting poverty is to improve productivity. Agriculture is our major occupation, that’s why we created Katsina State Irrigation authority.

“The aim is to have all year-round irrigation farming in the state, that will reduce redundancy, and keep everybody busy.

The governor said the importance of farmers being educated about farming as a business to boost productivity.

He noted that upon his assumption in office, there were only 72 extension workers in the state, but now there are 722.

“Just yesterday we gave each of them a motorcycle and other equipment to enable them move around to enlighten farmers on the way to improve their productivity.

“We also launched the sales of about 20,000 metric tons of fertilizer to farmers in the state at a very subsidised price.

“These are some of the things that we are putting in place to engage the farmers, the youths and the locals to be more productive, reduce the level of poverty and improve their livelihood.”

The governor added that the state government, through the KT-CARES, has supported over 6,100 farmers in the state.

“We also supported women and youths with items worth over N2.5billion to get them moving.”

The Presidential Committee on Fiscal Policy and Tax Reforms has asked the federal government to adopt an exchange rate of ₦800 per dollar for customs import duty.

The chairman of the committee, Taiwo Oyedele, spoke on Thursday while engaging journalists on the activities of the tax panel in Lagos.

While presenting some of the committee’s recommendations, the tax expert expressed concern over the import duty rate, which constantly changes due to the volatility of the foreign exchange (FX) market.

This, Oyedele said, does not allow for adequate planning by businesses.

He said, “When we did the budget, we said naira to dollar will be ₦800, now it is 1,000 something. People need to plan.

“So now, we’re saying dear government can you please sign an order that says for the purpose of paying import duty, we shall use ₦800… for the rest of the year till December.

“So, we have proposed ₦800.”

The import duty rate in recent times has witnessed incessant adjustments by The Nigerian Customs Service (NCS).

On May 27, the customs adjusted the FX rate for tariffs and duties to ₦1,480 per dollar.

Customs typically adopt FX rates recommended by the Central Bank of Nigeria (CBN) for import duties based on trading activities in the official FX market.

On May 16, Muda Yusuf, the director-general of the Centre for the Promotion of Private Enterprise (CPPE), said the customs should set a quarterly exchange rate between ₦800/$ and ₦1000/$ for import duties assessment.