Nation
Chamber Predicts Rise In Inflationary Rate In 2021
The Lagos Chamber of Commerce and Industry (LCCI) says inflation rate will rise in 2021.
The chamber made the assertion in its Economic Review for 2020 and Outlook for 2021 made available to newsmen, yesterday in Lagos.
Its Director-General, Dr Muda Yusuf, attributed the projected inflation outlook for the incoming year to the combination of food supply shocks, heightened insecurity in major food-producing states, foreign exchange policies, illiquidity and higher energy costs.
“We, however, believe a broad-based harmonisation of fiscal and monetary policies towards addressing the identified structural constraints will significantly help to moderate inflationary pressure in the medium term,’’ he stated.
On sectorial review and outlook, the LCCI’s D-G said performance was largely weak across sectors in the third quarter of 2020 because of lingering effects of Covid-19 disruptions.
Yusuf stated that the trend would likely persist into the last quarter of 2020 and the first quarter of 2021 as the economy gradually recovers from the recession.
He noted that a resurgence of Covid-19 pandemic would cause another disruption in activities in the oil and non-oil sectors.
“We expect Information, Communication Technology, financial institutions, and agriculture to drive growth in the non-oil sector in the short-term while the country’s commitment to Organisation of Petroleum Exporting Countries (OPEC) agreement is expected to dampen recovery prospects of the oil sector,’’ he stated.
On Agriculture, the LCCI’s D-G said he foresaw the CBN sustaining its intervention in the sector in year 2021 in a bid to boost domestic food production and minimise food supply gap.
“While the ban on importation of rice, poultry and other agricultural commodities still subsists amid border reopening, there is risk of resurgence of smuggling of agricultural products into the country considering the porous nature of Nigeria’s land borders.
“This, combined with the commencement of Africa Continental Free Trade Area (AfCFTA), could see Nigeria being a destination for imported food products in the absence of adequate border monitoring measures.
“Additionally, heightened security concerns around the country, especially in the northern part and resurgence in herder-farmer conflict in the Middle Belt, the southwest and southeast, if unaddressed, will hamper local food production in the near term.
“Nonetheless, we expect a modest growth performance in year 2021,’’ he said.
As outlook for the manufacturing sector, Yusuf said the reopening of the land borders should provide succour to the sector even as the kick-off of AfCFTA serves as an avenue for manufacturers to penetrate new African markets.
He noted that critical challenges currently beguiling the sector alongside the new competitiveness pressure foisted by the AfCFTA might dampen the recovery prospects of the sector in year 2021.
“We expect the CBN to sustain its intervention efforts in the manufacturing sector as part of measures to boost economic recovery.
“We see the CBN maintaining policies that support credit extension to the real economy.
“The low interest environment in the money market favours big manufacturing players in terms of raising cheap capital, but the business environment will remain challenging for manufacturing SMEs.
“In our view, credit flows to the manufacturing sector will fail to achieve desired outcomes without putting in place measures to address structural, bottlenecks in the ports and customs processes and other policy challenges to productivity.
“Thus, we see growth of the manufacturing sector being subdued in the near to medium term,’’ he said.
Yusuf said the banking industry was expected to sustain positive growth trajectory in Q4-2020 amid the numerous regulatory limitations.
“We expect CBN to maintain its regulatory surveillance in the industry in ensuring the industry is financially sound amid evolving Covid-19 disruptions.
“Resurgence of Covid-19 pandemic, oil price volatility sluggish economic recovery and lingering external pressure are major downside risks to the growth prospects of the banking sector in year 2021.
“Loan-to-Deposit-Ratio policies drove the impressive performance in Q1-2020 by 24 per cent and Q2-2020 by 28.41 per cent.
“Momentum eased in Q3-2020 (6.8 per cent) as banks became more reluctant in providing credit to business given weak macroeconomic conditions.
“Nevertheless, banking industry remained financially sound with Capital Adequacy, Non-Performing Loan Ratio and Liquidity Ratio at 15.5 per cent, 5.73 per cent and 35.6 per cent as of end-October 2020, respectively,’’ he said.
The LCCI’s D-G said the oil sector would further contract in Q4-2020 in the light of lower production in compliance to OPEC+ agreement.
“We note OPEC+ has agreed to ease supply cut by 0.5 million barrels per day starting from Jan. 1, 2021 due to sluggish recovery in fuel demand, much lower than 2.0 million barrels per day earlier planned.
“Crude oil production will likely be lower in year 2021 as OPEC+ sustains efforts to prevent oil glut.
“We project that OPEC+ will be cautious in relaxing output reduction given the uncertainties around Covid-19 pandemic and global oil demand.
“Thus, we expect oil and gas sector growth to be subdued in year 2021 on the continued implementation of OPEC+ Declaration of Cooperation and weak oil price outlook.
“Also, increasing preference for renewable energy globally will put downward pressure on crude oil demand and prices. We are not optimistic of a significant growth performance in oil industry in year 2021,’’ he said.
He said that considering the dim outlook for revenue in the face of weak economic fundamentals, government would most likely underperform its revenue projections with attendant impact on fiscal deficit and debt portfolio.
“Budget deficit for year 2021 is expected to remain elevated above the projected N5. trillion and this poses a risk to Nigeria’s fiscal sustainability.
“We believe the Federal Government will be inclined towards securing concessionary borrowings with low interest rate and long maturity profile in the global market, rather than raising Eurobonds, especially now that the country is faced with foreign exchange scarcity,’’ he said.
Nation
Gombe Opens Bid For Construction Of Three-Arm Zone Project
Gombe State Ministry of Works, Housing and Transportation has opened bids for the construction of three arms zone complexes within the Gombe Capital Special Development Zone which held at the Ministry’s conference hall.
Speaking while presiding over the bid opening proceedings, the Commissioner, Engr. . Usman Maijama’a Kallamu assured the bidders that the bid opening would be carried out using procurement process which is based on specific regulations that are credible, fair, and transparent.
The Commissioner, who was represented by the Permanent Secretary of the Ministry, Alh. Idris Yambiu Buba said that the Ministry will continue to align itself for optimal results in the implementation of government policies and projects in line with Governor Muhammadu Inuwa Yahaya’s commitment to bringing development to the State.
While assuring the bidders of a transparent process, the SSA to the Governor on Special Project, Arch. Yakubu Mamman thanked Governor Muhammadu Inuwa Yahaya for his foresight in infrastructural development of the State, adding that government is committed to ensuring that all bidders had an equal chance to participate and compete based on merit to maintain standards and specifications.
Nation
Gov Mbah Signs Bill To Establish Teaching Hospital In Enugu
Governor of Enugu State, Dr Peter Mbah, yesterday, signed the Enugu State University of Medical and Applied Sciences (SUMAS) Teaching Hospital Bill 2024 into Law, promising to expedite action to actualise the teaching hospital immediately to provide quality training and healthcare services in the Enugu North part of the State and the State in general.
Mbah, while commending the Enugu State House of Assembly for accelerating action on the processing and passage of the Executive Bill, said that establishing SUMAS Teaching Hospital was in line with his manifesto.
He said, “What we have done by signing into law the Enugu State University of Medical and Applied Sciences Teaching Hospital Bill is that we now have in place a legal framework to immediately begin to put in place all that is required to upgrade SUMAS to a teaching hospital. This is part of our campaign promises and we are committed to delivering on that expeditiously.
“We believe that the importance and significance of siting a teaching hospital in our Enugu North zone can never be lost on us. So, we are not going to spend any time in making sure that everything that is necessary and required to upgrade and get the teaching hospital operational is put in place. With this Law, we are going to redouble our commitment and our efforts to achieve that.”
He assured the Governing Council and the Management of SUMAS of his continued support, adding that his administration would equally be counting on their pedigree and contacts to bring the teaching hospital to fruition in record time.
“We are going to continue to support you and we are also going to continue to count on your experience, network, and profile in raising resources to actualize the project.
“This year alone, we are going to spend 33 per cent of our budget on education. This underscores the importance of education to this administration. So, be sure to come to us whenever there is a need. We are going to support you because we are interested in education and we are investing heavily in it,” he said.
On his part, the Speaker, Enugu State House of Assembly, Hon. Uchenna Ugwu, who also spoke at the Bill signing witnessed by the Chairman of SUMAS Governing Council, Msgr. Obiora Ike, and the Vice Chancellor, Prof. James Ogbonna, and top hierarchies of the institution, commended Governor Mbah’s speed and faithfulness in delivering on his campaign promises. He assured that the House of Assembly was ever ready to fast-track every executive bill that would impact positively on the state and its people.
“We promised we are going to support this administration by doing our job expeditiously to ensure that there is no delay in your delivery of democracy dividends to our people. Therefore, the SUMAS Teaching Hospital Bill received expedited hearing and today you have the signing of the bill into law,” he stated.
Nation
Ododo Applauds Security Agencies Over Rescue Of 43 Bus Passengers
Kogi State Governor, Ahmed Usman Ododo has applauded security agencies in the State for their efforts in the rescue of 43 bus passengers.
The Special Adviser on Media to the Governor, Ismaila Isah disclosed this in a statement yesterday.
The statement noted that the governor welcomed the news of the release of the abducted bus passengers in Okehi Local Government Area of the State and called for sustained collaboration between security agencies and local communities to improve intelligence gathering and prevent crime and criminality in all parts of the state.
Ododo commended the caretaker chairman of Okehi LGA, Mr Amoka Eneji, the Nigeria Police, Nigeria Professional Hunters, Ebira Local Hunters Group and other security agencies for their intervention, which led to the rescue of the passengers who were abducted outside the state.
“Governor Ododo also commends the response of security agencies to the robbery incidence in Felele area of Lokoja and called for more urgency in addressing cases of insecurity in any part of the state.
“The Governor reassured the people of the state that his administration will not relent in its efforts in deploying maximum resources to ensure that all communities in the state remain unsafe for criminal elements.”
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