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Capital Importation Rises By 26%, Hits $2.19bn In Q4 -DMO …Says Govt Borrowings Not Bad

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The value of capital importation into Nigeria increased by 26.35per cent to hit $2.19billion in the fourth quarter of 2021, according to new data from the National Bureau of Statistics (NBS).
In its ‘Nigerian Capital Importation’ report released, yesterday, the NBS disclosed that capital importation increased from $1.73billion in the third quarter of 2021 to $2.19billion in Q4, 2021.
It said, “The total value of capital importation into Nigeria in the fourth quarter of 2021 stood at $2.19billion from $1.73billion in the preceding quarter showing an increase of 26.35per cent.
“When compared to the corresponding quarter of 2020, capital importation increased by 109.28per cent from $1.05billion. The largest amount of capital importation by type was received through other investment, which accounted for 54.24per cent ($1.19billion).
“This was followed by Portfolio Investment with 29.39per cent ($642.87million) and Foreign Direct Investment amounted to 16.38per cent ($358.23million) of total capital imported in Q4 2021.”
The NBS added that the tanning sector attracted the highest inflow with $645.59million, 29.51per cent of total inflow.
Lagos attracted the most investment, with 90.66per cent ($1.98billion) of total investment flowing to the state.
It said, “Disaggregated by Sectors, capital importation into tanning had the highest inflow of $645.59million amounting to 29.51per cent of total capital imported in the fourth quarter of 2021.
“This was followed by capital imported into the production sector, valued at $360.06million (16.46per cent) and the electrical sector with $325.55million (14.88per cent). Capital Importation by country of origin reveals that Mauritius ranked top as source of capital imported into Nigeria in Q4 of 2021 with a value of $611.45million, accounting for 27.95per cent.
“This was followed by the United States of America and the Republic of South Africa valued at $321.03million (14.67per cent) and $285.83million (13.07per cent) respectively. By destination of investment, Lagos State remained the top destination in Q4 2021 with $1.98billion accounting for 90.66per cent of total capital investment in Nigeria.
“This was followed by investment into Abuja, valued at $170.55million (7.80per cent). Categorisation of total capital investment by the bank shows that Eco Bank Plc ranked highest in Q4 2021 with $708.58million (32.39per cent). This was followed by Stanbic IBTC Bank with $453.82million (20.74per cent) and Union Bank of Nigeria Plc with 284.60million (13.01per cent).”
Similarly, the Director-General of the Debt Management Office, Patience Oniha, has said borrowings by countries to finance budget deficits and critical infrastructure is not necessarily a bad idea.
The DG disclosed this in an interview with newsmen, yesterday, in Lagos, while speaking during an awareness programme on security issuance organised by the Debt Management Office (DMO).
According to her, government borrowings were done by all countries across the world, mostly to finance critical infrastructure, the multiplier effects of which could not be overemphasised.
Oniha reckoned that successive Nigerian governments have had to recourse to borrowing to fund budget deficits, adding that annual budgets would be affected if funds were not raised to support them.
“The issue of debt has become topical in Nigeria that sometimes it almost looks as if borrowing is an offence or a crime. The first thing we must understand is that countries across the world borrow, be it poor countries, advanced countries, developed countries, emerging markets, they all borrow.
“We usually hear complaints that debt levels are rising in Nigeria. Globally, debt levels are rising – not just in Nigeria,” she remarked, stressing that the advent of COVID-19 had also made borrowing imperative for many countries, regardless of size, population, or economic growth.
“What has happened with COVID-19 is that countries needed to spend more, not only on health needs but on social needs as well, because we need to take care of the people who are losing their jobs. We need to create incentives for the private sector to continue operating in order to avoid a big recession because most countries experienced (recession).
“We did as well, but we came out of it after two quarters. Government spending is one of the tools you can use properly to exit a recession,” she affirmed.
The DMO boss clearly made a case for the Federal Republic of Nigeria with regards to financing budget deficits, financing specific projects and services like railways, roads, airports, et al., opining that infrastructural financing is in “itself an economy”, capable of creating enormous jobs across all sectors in the country.
“We also borrow to finance maturing loan obligations like the Federal Government of Nigeria bonds and Nigeria Treasury Bills,” Oniha said, observing, however, certain statutory norms regulating government’s borrowings at various levels and guarding against fiscal impropriety arising from the process.
“The Fiscal Responsibility Act states that borrowing should be for capital purposes and for human capital development.
“The DMO Act is also clear, especially on external borrowings. No arm of government can borrow on its own. It has to conform with those provisions and pass through the Federal Executive Council and the National Assembly,” the DG spotted.
Recently, some stakeholders in Nigeria have raised a stink over the country’s rising debt profile, with some sending strong notes of an ‘impending storm’, as food prices soar even annoyingly higher to the chagrin of the masses, whilst the nation keeps lumbering to meet its local demand for food, staggered by inadequacies, insecurities and most recently the Russia-Ukraine global crisis, which had led to a surge in food prices in most parts of the world.
The DMO had earlier revealed that the country’s total debt stock as of December, 2021, was pegged at a whopping N39.55trillion, ratiocinated to hit N45trillion 2022, just as the government planned to borrow an additional N6.39trillion to finance the 2022 budget deficit.
Oniha had explained that the overall deficit in the 2022 budget was N6.30trillion, representing 3.46per cent of the country’s Gross Domestic Product.
She observed that the budget deficit was to be financed mainly by borrowings from both domestic and foreign sources including privatisation proceeds.
“About N2.57trillion will come from domestic sources; N2.57trillion from foreign sources; N1.16trillion from multilateral and bilateral loan drawdowns, and N90.7billion from privatisation proceeds,’’ she revealed.

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NASS commends FIRS for surpassing 2024 target, sets 2025 goal

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The National Assembly has lauded the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, for exceeding the 2024 revenue collection target of N19.4 trillion.

FIRS generated N21.6 trillion, surpassing the target by N2.2 trillion.

The commendation came during a meeting on Wednesday in Abuja, where the FIRS chairman appeared before the joint committee on Finance to defend the service’s revenue projections for 2025.

The committee proposed a N25 trillion revenue generation target for FIRS in the coming fiscal year.

Deputy Chairman of the House of Representatives Committee on Finance, Saidu Abdullahi, was the first to commend Adedeji’s performance, calling it “unprecedented” and “worthy of commendation.”

“The feat achieved by FIRS in revenue collection for 2024 was unprecedented and truly commendable.

“Surpassing the target set for the agency in the 2024 Appropriation Act, from N19.4 trillion to N21.6 trillion, is both encouraging and impressive,” he said.

He encouraged the FIRS to study the tax collection methods of South Africa, which generated higher tax revenue, and to focus on expanding the taxable base to include more informal sector workers.

Sen. Joel Onowakpo emphasised that tax collection was a global norm, and advised the committee to raise FIRS’s projected 2025 revenue target to N30 trillion.

Similarly, Sen. Binos Yeroe lauded Adedeji’s innovative approach in surpassing the 2024 target.

“Your performance in 2024 was highly commendable, and I hope you continue to maintain this level of success,” he said.

Rep. Etanabene Benedict suggested aiming for N60 trillion in 2025 to avoid borrowing.

Committee chairmen also supported the proposed N25 trillion revenue goal for 2025; with Sen. Sani Musa stating that it was both “achievable and surpassable.”

 

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Abbas, Kalu express grief over Deputy Chief Whip, Onanuga’s death

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Speaker of House of Representatives, Tajudeen Abbas, has expressed deep grief over the demise of the Deputy Chief Whip of the house, Rep. Adewunmi Onanuga.

In a statement on yesterday, Abbas described the late lawmaker as a strong pillar who would be sorely missed in the house.

The Tide source reports that Onanuga, who died on Wednesday, represented Ikenne/Sagamu/Remo North Federal Constituency and was serving her second term in the house.

Abbas said that he had led members of the house in support and prayers for Onanuga during her health challenge and was hopeful of her recovery, saying that her eventual death was painful.

He recalled Onanuga’s campaigns for gender equality, women empowerment and inclusion in politics and governance, as Chairman, House Committee on Women Affairs and Social Welfare in the Ninth House and as a principal officer in the 10th House.

Abbas also recalled how the late lawmaker, as the only female member in the leadership of the house, inspired and rallied female legislators for the greater good of the chamber and the country in general.

“Onanuga was a brilliant woman, experienced politician, resourceful lawmaker and a dependable ally in the legislative business,” he said.

Abbas commiserated with the Onanuga family and her constituents, the people and the government of Ogun as well as the All Progressives Congress (APC) on the demise of the legislator.

Also, the Deputy Speaker, House of Representatives, Rep. Benjamin Kalu, expressed sadness over Onanuga’s death.

Kalu described the deceased as a shining example of dedication, compassion and selfless lawmaker whose service to her constituents and the nation was outstanding.

He acknowledged her support for the Peace In South East Project (PISE-P), which demonstrated her passion for defeating insecurity in Nigeria.

“Onanuga was a dedicated and committed lawmaker, renowned for her unwavering commitment to peace.

“Her passion for promoting harmony and understanding was truly commendable. Beyond her legislative accomplishments, Onanuga’s compassion, humility and simplicity inspired countless individuals.

“Her warm and infectious smile, coupled with her empathetic nature, endeared her to everyone she met, making her a beloved figure in the lives of many,” he said.

Kalu said that Onanuga would be remembered for her commitment to the cause of women’s empowerment and political inclusion as well as her relentless efforts toward ensuring that the gender bills were passed.

The deputy speaker extended his heartfelt condolences to the Onanuga family, her colleagues and constituents, saying that she would be greatly missed.

He prayed for the peaceful repose of the soul of the late lawmaker and the fortitude to bear the loss.

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Rotary Foundation commits $300m to polio eradication in Nigeria

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The Rotary International Foundation says it has committed over 300 million dollars to polio eradication in Nigeria.

Its Chairman, Board of Trustees, Mark Maloney, disclosed this on Thursday while conducting polio immunisation at a Primary Healthcare Centre in Jahi, Abuja.

According to him, polio eradication is Rotary’s number one priority worldwide and it is focused on eradicating the variant type two poliovirus cases discovered in 2024.

Maloney said efforts towards eradicating the polio variant should be intensified, adding that recording success in that area would be beneficial to the Nigerian government.

He also commended the Federal Government’s polio accountability programme as well as all Rotarians for their efforts in putting an end to the disease.

“The Nigerian government is facing a significant challenge with the continuation of variant polio type two, and so far, we have seen about 92 cases through the cases that have been evaluated in 2024.

“We encourage the government to redouble their efforts to put the focus on this polio eradication as they did with the Wild Polio Virus (WPV), and they were successful.”

On new donations to Nigeria, Maloney said that Rotary would allocate some funds in 2025, but the amount was yet to be determined.

“There are 50 million dollars that I expect will be allocated, but a lot of it has to go to Pakistan and Afghanistan, where WPV is still endemic.

“Though, I think there will be a significant tranche of funds, maybe not tens of millions, but a significant amount of money will be allocated to Nigeria,” he added.

The chairman noted that the organisation has allocated two million dollars to its Programme of Scale project aimed at reducing the rate of birth-related mortality in Nigeria.

“What we are looking to do is to decrease the rate of mortality in births in this country, and it is operating now in several districts.

“One way that the mortality rate can be decreased is for more births to happen in a healthcare facility rather than at home.

“We have seen in the first year of the programme a significant increase in the percentages of births happening in medical facilities.

“One district had gone from 11 per cent happening in medical facilities to 33 per cent, which is a significant increase,” he added.

The Chairman of the organisation’s Nigeria National Polio Plus Committee, Mr Joshua Hassan, said outbreak immunisation efforts are conducted locally in response to the vaccine-derived variant of polio.

Hassan said national immunisation days are planned twice a year for the entire country.

According to him, the organisation is focusing more of its efforts on Kano, Zamfara, Katsina, Kebbi, and Sokoto states.

Prof. Emmanuel Lufadeju, the National Coordinator of Together for Healthy Families in Nigeria, said that the Programme of Scale project was designed to reduce maternal mortality among women by 25 per cent.

Lufadeju said that this is done through community dialogue, home outreaches, medical outreaches, and capacity building.

“We are going to train a lot of people, including doctors and nurses.

“Then we are going to do something that is called a social, behavioural change, to change the attitude of people and make them deliver in the facility instead of delivering at home.”

He added that the two million dollar project, which began in 2024, is expected to end in 2025.

The Tide source reports that Maloney is in Nigeria for an official visit to embark on advocacy, carry out symbolic immunisation, visit the Programme of Scale project areas, and also visit President Bola Tinubu.

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