News
Capital Importation Rises By 26%, Hits $2.19bn In Q4 -DMO …Says Govt Borrowings Not Bad
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.
News
NDLEA Alerts Parents After Uncovering Drugs In Cookies, Gummies
The National Drug Law Enforcement Agency (NDLEA) has cautioned parents to closely monitor their children’s craving for cookies and gummies, warning that some of the products may contain illicit substances being smuggled into the country.
In a statement posted yesterday, NDLEA’s Director of Media and Advocacy, Femi Babafemi, said recent seizures by the agency’s officers had revealed attempts by criminal elements to introduce prohibited substances under the guise of everyday snacks.
“As parents, if your kids and young ones always crave for cookies and gummies, you may have to pay a little more attention. There may be more to it than ordinary cookies and gummies,” Babafemi wrote, sharing images of seized packages.
The photos showed colourful pouches of “Cookies Delta 8 Gummies” in flavours such as Hawaiian Rain Pineapple Guava and Thai Mango, labelled as vegan and hemp-derived, alongside the actual gummy products.
The warning comes amid a major interception by the Nigeria Customs Service at the Tin Can Island Port in Lagos.
Officers seized two 40-foot containers containing large quantities of cannabis-infused products concealed among legitimate imports such as used vehicles, generators, batteries and fabrics.
The consignment included thousands of Delta-8 cannabis pre-roll cookies, packs of cannabis-infused gummies and other cannabis-infused cookies, with a combined estimated street value of about ?373.8m.
The items were subsequently handed over to the NDLEA.
NDLEA officials described the products, which originated from the United States and were packaged to resemble ordinary vegan snacks with appealing flavours, as an emerging public health threat.
They noted that the attractive packaging could appeal especially to children, students and young people, raising the risk of accidental consumption of concentrated cannabis.
News
RIWAMA, PCRC Join Forces To Curb Illegal Waste Dumping In Rivers
The Rivers State Waste Management Agency (RIWAMA) has announced plans to partner with the Police Community Relations Committee (PCRC) to strengthen efforts at combating illegal waste dumping and improving environmental sanitation across the state.
The partnership was unveiled during a meeting between officials of RIWAMA and the leadership of the Rivers State chapter of the PCRC in Port Harcourt, recently, where both organisations pledged to work together to restore the Garden City status of the state capital.
In his speech, the Supervisor of Market and Community Sanitation in RIWAMA, Mr. Omereji Ukoha, said the collaboration was in line with the vision of the agency’s Managing Director, Dr. Ibimina Wokoma, and the Board Chairman, Dr. Samuel Nwanosike, to promote a cleaner and healthier environment.
Ukoha described the PCRC as a strategic grassroots partner capable of mobilising communities and driving behavioural change through sustained public enlightenment on proper waste disposal.
He expressed concern over the increasing rate of indiscriminate refuse dumping in parts of Port Harcourt, particularly in New GRA, where blocked drainage channels and illegal shanties have continued to contribute to flooding and environmental degradation.
According to him, the agency is determined to intensify enforcement against environmental offenders, warning that unregistered cart pushers and residents who patronise them would be prosecuted in accordance with the provisions of the RIWAMA Act, 2014.
The RIWAMA official urged residents to embrace proper waste disposal practices and patronise only government-approved waste operators in order to safeguard public health and protect the environment.
Responding, the Chairman of the Police Community Relations Committee in Rivers State, Dr. Voke Emore, commended RIWAMA for seeking collaboration with the committee in addressing environmental challenges confronting the state.
Emore said the PCRC would deploy its community-based structures across the state to support public sensitisation and encourage residents to comply with environmental sanitation regulations.
He also called on local government councils to play more active roles in waste management, noting that they collect sanitation levies and should complement the efforts of the state government in maintaining a clean environment.
The PCRC chairman described indiscriminate refuse disposal as a serious environmental and public health concern, stressing that sustained collaboration among government agencies, community leaders and residents remained critical to achieving lasting sanitation goals.
Both organisations expressed optimism that the partnership would promote cleaner communities, reduce environmental hazards and strengthen public participation in efforts to ensure a healthier and more sustainable environment for the people of Rivers State.
King Onunwor
News
Police Nab Kidnap Syndicate, Arrest Five In Rivers
The Rivers State Police Command has arrested five suspected members of a kidnapping syndicate allegedly terrorising communities in Oyigbo Local Government Area of the State.
The State Police Command disclosed this in a statement by its Public Relations Officer, ASP Blessing Agabe, in Port Harcourt, recently.
The suspects were arrested during a coordinated operation at Oyigbo, following directives by the Commissioner of Police, Rivers State Command, CP Olugbenga Adewole Adepoju.
Those arrested were Ezekiel Emmanuel, 44, from Benue State; Chukwuma Mbanefor, 51, from Anambra State; Nicholas Diala, 65, from Imo State; Ndubuisi Uwakwe, 49, from Abia State; and Ifeanyi Nwakwo, 51, from Imo State.
The Command said the arrest represented another significant operational success in its ongoing efforts to dismantle criminal networks operating in the State.
According to the Police, preliminary investigation indicated that the suspects were allegedly involved in kidnapping operations within Rivers State.
The suspects, during interrogation, allegedly confessed to their involvement in kidnapping and further admitted participating in several operations carried out in Kom-Kom, Railway, Obeama and Afam communities.
The Command said investigation was ongoing, with efforts intensified to identify and apprehend other members of the suspected syndicate who may be connected with the criminal activities.
The Police boss said the operation reflected the implementation of operational directives and the intelligence-driven policing strategy of the Inspector-General of Police, IGP Olatunji Rilwan Disu, psc, NPM.
Adepoju reaffirmed the Command’s determination to sustain aggressive intelligence-led operations against kidnapping, cultism, armed robbery and other violent crimes across Rivers State.
He warned kidnappers and other criminal elements operating in the State that there would be no safe haven for them, stressing that the Command would relentlessly pursue, arrest and ensure that those found culpable were brought to justice.
The Commissioner further assured residents of the Command’s commitment to protecting lives and property, urging members of the public to remain vigilant and cooperate with security agencies in the fight against crime.
He appealed to residents to provide the Police with credible and timely information capable of assisting security operatives in preventing criminal activities and apprehending suspected criminals.
The Command urged members of the public who may have useful information on the activities of the suspected kidnapping syndicate or other criminal elements to contact the Police through its emergency lines, assuring that such information would assist ongoing investigations.
King Onunwor
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