Business
FG Predicts Quick Economic Recovery By 2010
The Minister of State for Finance, Mr. Remi Babalola, last week in Abuja, assured that the federal government would ensure an accelerated economic recovery for the country in 2010. This is coming just as the government has also called for urgent exit of public funds from the eight financial institutions rescued by the Central Bank of Nigeria. Babalola, who spoke at the 2009 ministerial press briefing of the ministry, said government had initiated strategic interventions to stimulate and re-energise the economy, including additional withdrawal from the excess crude account. He explained that the interventions were aimed at ameliorating the adverse impact of credit squeeze due to extreme risk aversion in the aftermath of effort to strengthen the banking sector. Babalola noted that the outgoing year had been a year of trauma and turbulence but expressed optimism that 2010 is certainly going to be a year of accelerated economic recovery. He pointed out that the huge withdrawals from excess crude account became inevitable in order to stimulate the economy. According to him, government has projected a Gross Domestic Product (GDP) growth of $ 900 billion from the current level of over $ 200 billion, as part of measures to realise the national Vision 2020 target for Nigeria. He disclosed that the Ministry for Finance is in strong collaboration with the Central Bank of Nigeria (CBN) to fast-track the establishment of an Asset Management Company (AMC). Babalola stated that the AMC had been conceptualised to assist banks to improve their capital and liquidity position by taking over toxic assets (qualifying loans from the banks). He assured that the establishment of the AMC will help restructure and further improve the balance sheets of banks as well as enhance the flow of credit to the road sector. He assured that fiscal authorities, particularly the ministry, were working with the monitoring authorities to ensure long-run soundness and stability of the financial system. The ministry called for urgent exit from financial institutions rescued by the CBN with public funds, while protecting investment value during the intervention. The minister added that in order to engender confidence, trust and rebuilding financial architecture, the government investments must be based on a tripod of strong governance, superior leadership and enhanced transparency. He confirmed that their have been improved efficiency and effectiveness of market regulation, enhanced oversight and greater supervision of the capital market by the Securities and Exchange Commission (SEC) in the last seven months
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.