Business
Experts Task FG On Debt Profile
Some financial experts in Lagos have advised the Federal Government to take aggressive steps to curb persistent increase in the domestic debt profile.
They gave the advise in an interview with our correspondent last Friday in Lagos.
Our correspondent recalls that the Minister of Finance, Dr Ngozi Okonjo-Iweala, said on Monday in Abuja that the nation’s domestic debt profile had increased to N5.9 trillion.
Okonjo-Iweala, the Coordinating Minister of the nation’s economy spoke at a consultative meeting with the organised private sector and civil society organisations.
She said that with the debt profile, it had become expedient for Nigeria to slow down its domestic borrowing and diversify its earning as the current interest rate continued to widen the debt net.
Dr Isaac Nwaogwugwu, a Senior Lecturer in the Department of Economics, University of Lagos, said that the rising internal debt profile was due to misplacement of priorities.
Nwaogwugwu said that most funds borrowed were diverted to other unproductive areas of the nation’s economy.
He said that persistent increase of the debt profile would put pressure on the economy and retard its growth.
“The ability of government to effectively use funds borrowed on specific projects would forestall further increase in domestic debt profile.
Nwaogwugwu, however, advised the government to diversify into other areas of untapped resources which would add value to the Gross Domestic Products (GDP).
He said that this would make government to have more revenues to spend on capital projects and reduce the debt profile.
Mr Eddie Osarenkhoe, the immediate past President, Finance Houses Association of Nigeria (FHAN), said that the expansionary increase in the government spending had contributed to rise in the internal debt level.
Osarenkhoe said that there were no effective monetary measures that could absorb the effect of the increasing government spending.
“If government can apply some discipline in its spending by placing its priorities right and tighten up its monetary policy, this will reduce the internal debt,’’ he said.
Osarenkhoe, however, urged both the State and Federal Governments to encourage indirect labour in projects execution to discourage over invoicing of contract sum.
Dr Kazeem Bello, Senior Lecturer, Department of Economics, University of Ibadan told NAN in a telephone interview that inability of government to implement efficient fiscal policy had affected the debt profile.
Bello said that the fiscal policy could either be used to tighten losses in the economy, depending on what government intended to achieve.
He said that strict fiscal policy was needed to control the continuous rising of debt by reducing its expenditures.
Bello also advised government to prevent diversion of public funds meant to be pay for domestic debt and ensure proper supervision of contracts to avoid over estimation of project sum.
“The ability of government to tackle diversion of funds and over estimation of project sum would reduce the nation’s debt profile,’’ he said.
Mr Olumide Adegoke, the General Manager, Standard Alliance Insurance Ltd., urged government to block all the leakages to check the internal debt.
Adegoke said that high level of corruption in various system of the economy was the major leakage that had adversely affected the debt profile.
He said that corruption was an impediment to the national development and urged government to reduce it to the barest minimum.
Business
NCDMB Hails Tinubu’s Oil Sector Executive Orders
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has commended President Bola Ahmed Tinubu over the announcement of three Presidential executive orders.
The orders, he said, are aimed at providing incentives in the Nigerian oil and gas industry, encourage new investments in the sector, reduce contracting costs and timelines, as well as promote cost efficiency in local content requirements.
According to a statement from the NCDMB’s Directorate of Corporate Communications and Zonal Coordination, the Executive Orders are the “Oil and Gas Companies (Tax Incentives, Exemption, Remission, ETC) Order 2024”, “Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41)”, and the “Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42)”.
Speaking at the Nigerian Content Tower, headquarters of the NCDMB in Yenagoa, Bayelsa State, the Executive Secretary stated that the policy directives had reinforced the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and codified the Service Level Agreements (SLA), which the NCDMB first introduced in May 2017, to fast-track approvals for the Nigeria LNG Limited Train 7 project, before expanding it to the entire industry after signing a Memorandum of Understanding (MoU) with the Nigerian National Petroleum Company Limited (NNPC Ltd), and five international oil-producing companies in September 2023.
Ogbe clarified that the Presidential Executive Orders did not whittle down the powers of the NCDMB or abrogate the schedule of the NOGICD Act.
He said, rather, the Executive Order 41 mandates the Board to ensure the patronage of local companies with domiciled proven capacities and capabilities to achieve cost competitiveness and project delivery within schedule.
He also noted that Executive Order 42 re-emphasized NCDMB’s obligation to fast-track approval processes as required by the SLA and section 23 of the NOGICD Act, which mandates the Board to review projects’ documentation within 10 days and advise the concerned operating company.
The Board’s helmsman assured that the NCDMB would comply with the terms of the Presidential Executive Orders, insisting that the Board had always been pragmatic with its implementation of the NOGICD Act, and mindful of the cost competitiveness of projects and schedules.
He also stated that the objectives of the Executive Orders and the SLAs were directed to shorten the oil industry’s contracting cycle to six months or less, engender speedy development of new projects, contribute to increased oil production, and improve the national economy.
The Executive Secretary expressed delight that President Tinubu had put his stamp of authority on the noble objectives of the SLAs, and commended him for acknowledging the giant strides recorded in Nigerian Content development.
Particularly, he noted the impressive capacities built by local oil and gas service companies in key areas of the industry and the substantial benefits that had accrued to the Nigerian economy and her citizens through local content implementation.
The NCDMB boss assured that the agency would continue to serve as a business enabler and maintain the recognition conferred by the Presidential Enabling Business Environment Council (PEBEC), which awarded the Board the most efficient agency amongst all Federal Government’s MDAs in 2022, and the PLATINUM rating by the Bureau for Public Service Reforms in recognition of the self-imposed reforms of the Board’s processes.
Ariwera Ibibo-Howells, Yenagoa
Business
Nigeria Opens Land, Air Borders With Niger Republic
President Bola Tinubu has directed the opening of Nigeria’s land and air borders with the Republic of Niger.
He also directed the lifting of other sanctions against the country with immediate effect.
A statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, said “President Tinubu has also approved the lifting of financial and economic sanctions against the Republic of Guinea”.
The statement is titled “Nigeria opens land and air borders with Republic of Niger, lifts other sanctions”.
The President’s directive has come just days after the ECOWAS Authority of Heads of State and Government lifted economic and travel sanctions on Niger, Mali, and Guinea at its extraordinary summit on February 24, 2024, in Abuja.
ECOWAS leaders had agreed to lift economic sanctions against the Republic of Niger, Mali, Burkina Faso, and Guinea.
Consequently, the President directed that sanctions imposed on the Republic of Niger be lifted immediately alongside others.
The sanctions are: “Closure of land and air borders between Nigeria and Niger Republic, as well as ECOWAS no-fly zone on all commercial flights to and from Niger Republic.
“Suspension of all commercial and financial transactions between Nigeria and Niger, as well as a freeze of all service transactions, including utility services and electricity to the Niger Republic.
“Freeze of assets of the Republic of Niger in ECOWAS Central Banks and freeze of assets of the Republic of Niger, state enterprises, and parastatals in commercial banks.
“Suspension of Niger from all financial assistance and transactions with all financial institutions, particularly EBID and BOAD.
“Travel bans on government officials and their family members”, the statement read.
Business
FG Targets Standards For Electric, CNG Vehicles
The National Automotive Design and Development Council (NADDC) has announced plans to validate its National Occupational Standards for the conversion and maintenance of electric vehicles and Compressed Natural Gas (CNG)vehicles.
The Director-General of NADDC, Joseph Osanipin, disclosed this during the validation workshop exercise for the draft of the national standards for auto gas vehicles in Nasarawa recently.
He stated that the primary objective of the workshop was to develop a blueprint for skills development and standardised operational procedures in the conversion, calibration, and maintenance of those new automotive energy sources, aligning with the government’s renewed hope agenda.
Osanipin noted that upon approval of the draft by the National Assembly, it would facilitate job creation and reduce greenhouse gas emissions, as ongoing plans include the establishment of more CNG gas stations in Abuja.
He said, “If we achieve what the Federal Government wants us to achieve with autogas, it will reduce the dependency on PMS and diesel and mitigate environmental concerns. It will also create more jobs and wealth for the nation”.
According to Osanipin, the essence of the workshop was to ensure that the input of all relevant stakeholders was captured in the making of this national document.
“This is in line with international best practices. It is expected that the document will come out of this effort at international standards and help to drive the auto sector to global standards”, he added.
He emphasised the significance of the Nigerian Automotive Industry Development Plan 2023 – 2033, relaunched by the Federal Government in 2023, aimed at revitalising the automotive industry and fostering sustainable growth through technological and skills development.
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