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Nigeria Can’t Survive On Borrowing-DMO

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The Debt Management Office (DMO) has disclosed that it has been difficult for Nigeria to borrow from the international markets as global lenders and investors are shunning countries with Category ‘B’ economic ratings.
Disclosing this to the House of Representatives, the Director General (DG) of the DMO, Patience Oniha, stated the need for Nigeria to improve on its revenue drive in searching for alternative sources of funds internationally, saying “we really can’t survive like this”.
The DG of the DMO, who made the disclosure while appearing before the House of Representatives Committee on Aids, Loans and Debt Management to defend the DMO’s 2023 budget, noted that the Federal Government had not been able to meet its external borrowing target.
Consequently, she said, the Federal Government was now looking at lenders in the United States and Europe.
“Where there is an issue is the new external borrowings. What was provided for in the 2022 budget is N2.57trillion of new external borrowings and this, in naira terms at the budget exchange rate, is $26bn.
“The reality is that if it were before, by now we would have issued Eurobonds to raise the money and we would be in good business.
“But let us say from the fourth quarter of last year, the international capital markets have not been opened to countries like Nigeria. So, in 2021, there was about $6bn to raise. We raised $4billion for that one. But this year, it is $1.25billion.
“The international markets are not looking for countries with our ratings –B ratings. The invasion of Ukraine by Russia, as you know, turned around things in the world significantly.
“So, inflation rates are high, interest rates are high and investors are saying there are a lot of uncertainties as to what will happen.
“There is a threat of recession. So, what they have decided to do is to put their money in the G-7 securities: United States, Germany, France, Japan, and so on. Those countries also issue bonds. So, that is where the investors are putting their money and rates have gone up significantly.”
Two global economic analysts and ratings, Moody’s and Fitch, recently downgraded Nigeria to Category ‘B’ economy.Speaking on debt service, the DMO boss stated that the government must pay attention to the percentage of deficit in its annual budgets.
“We really need to look at revenues. For debt to be sustainable medium term, you must earn revenues. We should not have a budget of N17trillion and N10trillion of deficit, and out of that (there is) new borrowing of N8.8trillion, which is 50 per cent of your budget”, she concluded.

 

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Senate Confirms Cardoso, 11 Others As Monetary Policy Committee Members 

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The Senate has confirmed the nomination of Olayemi Cardoso as the chairman of the Monetary Policy Committee of the Central Bank of Nigeria.

Also confirmed for appointment as members of the MPC yesterday, include, Muhammad Abdullahi, (CBN deputy governor), Bala Bello (CBN deputy governor), Emem Usoro (CBN deputy governor), Philip Ikeazor (CBN deputy governor), Lamido Yuguda, (DG Securities and Exchange Commission) and Jafiya Lydia Shehu, (Permanent Secretary, Ministry of Finance).

Others are Murtala Sabo Sagagi (CBN director) Aloysius  Ordu, Aku Odukemelu, Mustapha Akinwunmi, and Bamidele Amoo.

President Bola Tinubu had on Wednesday named Cardoso as the chairman and 11 others as members of the MPC.

Tinubu in his letter of nomination to the Senate, said his action was in line with the provisions of Section 12 of the Central Bank of Nigeria Act 2007.

The President had about a week ago asked the Senate to confirm Cardoso, as the chairman of the Monetary Policy Committee of the apex bank.

CBN MPC will hold its first policy meeting for the year on February 26 and 27.

The Senate had , on Wednesday, screened the nominated members of the CBN Monetary Policy Committee, questioning them on the lingering foreign exchange and food crises.

 

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‘Unemployment Rate Hit 0.8% In 2023 Q3’

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The unemployment rate in Nigeria rose by 0.8percent in the third quarter of 2023.
According to the National Bureau of Statistics (NBS), this was a significant rise, adding that the unemployment rate rose from the 4.2percent recorded in Q2 2023 to 5.0 percent in Q3 2023.
The NBS, the custodian of official statistics in the country, disclosed this in a report it published last Monday titled “Nigeria Labour Force Survey Q3 2023”.
“The employment-to-population ratio was 75.6 percent in Q3 2023 with a decrease of 1.5 percent compared to a ratio of Q2 2023.
“The combined rate of unemployment and time-related underemployment as a share of the labour force population (LU2) increased to 17.3percent in Q3 2023 from 15.5percent in Q2 2023.
“About 87.3 percent of workers were self-employed in Q3 2023. The proportion of workers in Wage Employment in Q3 2023 was 12.7 percent.
“The unemployment rate increased significantly in Q3 2023 at 5.0 percent. This is an increase of 0.8 percent from Q2 2023.
“The rate of unemployment among persons with post-secondary education was 7.8 percent in Q3 2023”, the report stated in part.
It added that the unemployment rate for youth between the ages of 15 and 24 years was recorded at 8.6 per cent in Q3 2023 while the informal employment rate in Q3 2023 was 92.3 per cent.
The report added, “The unemployment rate in urban areas was 6.0 percent percentin Q3 2023, a slight increase of 0.1 percent from Q2 2023.
“Time-related underemployment in Q3 2023 was 12.3 percent, showing a slight increase of 0.5 percent from the rate recorded in Q2 2023. This shows an increase of 1.4 percent compared to the rate in Q4 2022.
“4.1percent of the working-age population was in subsistence agriculture in Q3 2023. Informal employment rate in Q3 2023 was 92.3percent, while Q2 2023 was 92.7percent.
“Percentage of youth Not in Employment, Education or Training was 13.7percent in Q3 2023”.
Recall that Nigeria’s inflation rate last Thursday climbed to 29.90 per cent in January 2024 from 28.92 per cent recorded in the previous month.
The 0.98 percent increase shows that the inflation rate in the country is yet to slow down.
The NBS revealed this in its ‘Consumer Price Index’
The development adds more pressure on the Central Bank’s monetary policy committee to sharply raise interest rates at a February  26-27 meeting its first in seven months.

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Merchant Navy Lauds NIWA Over Staff Welfare

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The Nigerian Merchant Navy Officers and Water Transport Senior Staff Association (NMNO/WTSSA) has expressed optimism that the Managing Director of National Inland Waterways Authority (NIWA), Mr. Bola Oyebamiji, will prioritise workers welfare for optimal performance of the agency.
Jibril Darda’u, General Manager, Corporate Affairs, NIWA, in a statement over the weekend, disclosed that the seafarers’ union’s remarks are one of the highlights of the meeting between the Trade Union Congress (TUC) affiliate group and management of the agency.
The statement quoted the Chairman of the NMNO/WTSSA, Comrade Suleiman Danjuma, as commending the Managing Director of NIWA for the good initiative of the kind of interaction that brings the staff closer to the management.
“This will definitely boost the morale of the staff and pledge their loyalty and confidence in the Managing Director’s leadership style”, Danjuma stated.
Earlier, the Managing Director of NIWA promised to build on the progress already achieved at the Lokoja River Port, Kogi State.
The MD disclosed this when he went on a familiarisation tour of NIWA’s facilities in Lokoja.
According to the MD, the importance of Lokoja River Port being in the confluence State is to boost the economic viability of the State and Nigeria at large.
“We are here for facility tour to see for ourselves what is on ground at Jamata Port, Lokoja. It is important we come here to assess the facilities to see, at least, how we can move the facilities forward”, he stated.
Recall that in continuation of his familiarisation tour, the Managing Director’s visited the NIWA Lokoja Area office to inspect the Dockyard facilities.

Nkpemenyie Mcdominic, Lagos

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