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Nigeria’s GDP To Hit $595bn By 2020

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Nigeria’s Gross Domestic Product (GDP) is projected to hit $595 billion in the next three years (2020), according to the latest Africa Investment Index 2016 released by Quantum Global Lab.
With a GDP of $415 billion currently, Nigeria is the biggest economy in Africa, and the GDP is projected to grow to about $595 billion by 2020 based on the latest report Africa Investment Index.
Nigeria is the 19th most attractive economy for investments flowing into the African continent,  according to the The Cable, an online news platform, citing the latest Africa Investment Index 2016 by Quantum Global Lab.
The country attracted a net foreign direct investment of $3.1 billion in 2015, Quantum Global Lab stated.
Speaking at an investment summit, Head of Quantum Global Research Lab, Mthuli Ncube,  said Nigeria still has prospects despite the current economic challenges.
“Despite the current economic challenges, we are quite confident on the medium to long term market prospects.”
“Nigeria has earmarked a significant amount of capital to develop critical infrastructure in the country and there are various opportunities for public-private collaboration providing investors’ return on their investments. We anticipate that investment in infrastructure will underpin the growth of the economy and meet the needs of a large Nigerian growth population,” he said.
Ncube advised the government on the steps to take to grow the economy.
“The short to medium-term focus of the Nigerian government is to reduce imports and address primary sector blockages, such as roads, bridges, power, railway, aviation, water, housing, agriculture.
The window, however, has effectively introduced yet another exchange rate to the five already in operation. These include a retail rate set by licenced exchange bureaus, as well as official and black market rates.
At the forex window, market regulator FMDQ OTC Securities Exchange quoted the naira at N364.56 to the dollar yesterday, compared with the N367 to the dollar in the black market.
The local currency traded at about N520 to the dollar in the black market in February and at the N400 in the forex window when it opened in April, with the two rates then starting to converge.
CBN Governor, Mr. Godwin Emefiele, told The Tide source  that the I & E window was opened up for more and more people who are interested.
“That was why we introduced the I & E window. We said if you wanted forex, you can go to that market and buy it once it fits the pricing structure of the goods or whatever you want to do.
“And that has helped to some extent in complementing the flow of forex into the market and has resulted in the appreciation that we have seen. It is the market that determines the direction of the exchange rate,” he said.
According to him, the CBN feels gratified to have seen a movement from as high as N500/$1 and converging heavily southward to its present value of about N360 to the dollar.
“All we need to do is to keep monitoring the market and ensuring that if there are certain areas we need to address, we address them. By doing that, we would see more flows into the economy, which would help grow the economy,” he said.
Meanwhile, the CBN has continued its foray into the foreign exchange market by injecting a total of $142.5 million into the interbank.
A breakdown of the intervention indicated that the bank offered the sum of $100million to dealers in the wholesale segment, while it allocated the sum of $23 million to the small and medium scale enterprises (SMEs) segment.
Those requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA) received $19.5 million.
The bank last week intervened in the retail segment of the market with the sum of $254.3million.
Confirming the latest round of forex intervention, the spokesperson of the apex bank, Isaac Okorafor, said the CBN will continue to carry out its regular mediation in the market so as to keep the market liquid and guarantee the international value of the naira in line with its mandate.
While reiterating the bank’s resolve to intervene in the market based on bids received from dealers on behalf of their respective customers, Okorafor said the CBN would not relent in ensuring transparency and efficiency in the sale of forex.
According to him, this commitment prompted the bank to mandate dealers to make public their forex utilisation.
He therefore urged all stakeholders to continually play their roles to guarantee transparency in the market.
Meanwhile, the naira maintained its stand at the Bureau de Change (BDC) segment of the forex market, exchanging at an average of N364/$1 in Lagos, Abuja and Kano, respectively.
re, education and health,” he said.
“Despite the current market volatility, Nigeria presents tremendous investment opportunities in these areas, which would not only support the local economy but
also deliver significant yields to foreign investors,” he said.

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CBN Opens N500,000 Grants Portal For Graduates, Undergraduates

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To reduce the level of suffering associated with unemployment in the country, the Central Bank of Nigeria (CBN) has developed grants of N500,000.00 for graduates and students.
A statement from the apex bank, made available to The Tide, said qualified persons have been directed to visit cbnties.com.ng portal for the CBN N500k grants registration.
This, according to the statement, is under the Tertiary Institution Entrepreneurship Scheme (TIES), in partnership with Nigerian Polytechnics and Universities to exploit the potential of graduate entrepreneurs in Nigeria.
CBN said the aim of TIES is to increase access to finance for Nigerian polytechnic and university graduates and graduates with innovative business and technological ideas.
The apex bank added that it is also to address the trend of white-collar job seekers and focus on job creation.
The statement quoted the CBN Governor, Godwin Emefiele, as saying that the scheme is designed to create a “paradigm shift from a ‘white-collar’ job search culture to an entrepreneurial culture to economic growth and job creation between undergraduates and graduates.
“As for the grant, CBN will allocate N500 million among the top five third best delivery organizations.
“The top five polytechnics and universities in Nigeria with the best entrepreneurial trends/ideas will be awarded first place: N150 million second place N120 million third place N80 million fourth place N80 million and fifth place. Location – N50 m illion”, it stated.
As part of the scheme, the CBN has announced that it will form a private and public sector expert organization (BoE) for two-year regional and national entrepreneurship competitions to assess the entrepreneurial and technological innovations offered by Nigerian polytechnics and universities.
BoE will also recommend high-potential projects and the variable impact on the award of the grant.
Projects funded under the scheme will be monitored by independent monitors set up jointly by CBN and MFIs.

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Economic Growth, Determining Factor For Policies In 2023  – Stockbrokers

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Chairman of Research and Technology at the Chartered Institute of Stockbrokers (CIS), Mr. Akeem Oyewale, has said that economic growth and development should be the determining factor in policies ahead of 2023.
Oyewale, who said this recently at the institute’s Annual National Economic Review and Outlook 2022 webinar  in Lagos, urged policy makers to act in a spirit of justice and tolerance to avoid acts that could lead to violence in the run-up to the 2023.
Speaking on the topic: “Global Dynamics Shaping Nigeria‘s Economic Future”, Oyewale listed factors such as the process leading up to the 2023 general elections, the response to Omicron, and the effects of COVID-19, as what would also determine the growth of the nation’s economic development.
He used the fora to urge the Federal Government to intensify its engagement with Nigeria’s capital market to better smoothly finance the 2022 budget deficit without increasing borrowing.
Oyewale also directed the Central Bank of Nigeria (CBN) to fully consider the effects on the capital market when making monetary and fiscal policies.
According to him, the philosophy of building an economy led by the private sector enshrined in the National Development Plan must be strictly adhered to.
On the need for new listings, Oyewale said Nigeria National Petroleum Company’s trading should continue with the public listing of its shares on the stock market.
This, he explained, would give Nigerians the opportunity to co-own one of the country’s commanding heights.
“The CBN and banks should grant trading facilities to securities trading firms in the country to maintain optimism in the capital market”, he said.
Speaking further, he urged pension funds and other institutional investors to increase their investment in the stock market to create much-needed stability and encourage new investment.
Earlier, President of the CIS Council, Mr Olatunde Amolegbe,  said the institute would continue with initiatives that would enhance its growth and development in 2022.
Amolegbe stated that CIS would undertake activities that would promote capital market literacy in all geopolitical zones of the country, saying that he would strengthen collaboration with international professional bodies such as CISI UK and others for the benefit of their members.
He continued that the institute was working to increase the number of Nigerian universities offering graduate and undergraduate courses in securities and investment/capital market studies.
“Our vision by 2023 is to see the Securities and Investments profession registered in the hearts of young Nigerian academics as their preferred career path and CIS as the model to be followed by other professional bodies,” he concluded.

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PenCom Completes Review Of Pension Reform Act 2014

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The regulatory body of the Nigerian Pension Industry, the National Pension Commission (PenCom) says it has deliberated on the review of the Pension Reform Act 2014 (PRA 2014).
This was contained in a statement to newsmen signed by Peter Aghahowa, Head, Corporate Communications of PenCom, who disclosed that the regulator organised the retreat on the review of PRA 2014 in Abuja between January 12 and 14.
According to Aghahowa, the retreat was aimed at identifying salient issues to be reviewed in the PRA 2014 as a prelude to advancing legislative action on the bill.
Aghahowa said it is expected that the National Assembly would subsequently organise a public hearing to provide an avenue for stakeholders to formally make input into the proposed amendments.
He also said that the PRA 2014 was enacted following a review of the initial PRA of 2004, which introduced legal and institutional frameworks of the Contributory Pension Scheme (CPS) and established PenCom to regulate and supervise all pension matters in Nigeria.
According to him, the Director-General of PenCom, Aisha Dahir-Umar, during the opening ceremony of the retreat, had informed the participants that the PRA 2014 codified one of the most important socio-economic reform initiatives of the Federal Government.
He continued that she said this has brought about a pension industry that has accumulated pension assets in excess of N13 trillion invested in various aspects of the Nigerian economy.
He quoted her as saying that “the review is a corollary to some implementation challenges encountered with certain sections of the Act not long after its enactment in July 2014.
“This was also an addition to persistent calls from stakeholders for the amendment of some sections of the Act, which resulted in several legislative initiatives through the sponsorship of Bills for amendment of the PRA 2014 by the National Assembly.
“Consequently, the Commission as the regulator of the pension industry, decided to coordinate and harmonize the various efforts in order to achieve a comprehensive and constructive exercise for the review of PRA 2014”, he concluded.

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