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As 2018 Winds UP: Nigerians Mourn Economy Under Buhari …Say 2019 Still Uncertain

Published

5 years ago

December 31, 2018

Despite the rise in the Manufacturing Purchasing Managers’ Index (PMI) at 61.1 index points for December 2018, as against 57.9 index points recorded in November, analysts say at the weekend that the outgoing year will not be forgotten in a hurry due to other negative indicators like high unemployment, dearth of credit by banks to critical sectors of the economy and high inflation in the midst of low purchasing power.
Bismarck Rewane, Chief Executive, Financial Derivatives Company’s December Lagos Business School’s publication sees 2019 as a year of “Trepidation and Growing Uncertainties,” adding that “The Nigerian economy may succumb to pressures of an oil price (down by 40%) to $53pb range and a cut in production to 1.67mbpd. The lower oil revenue and a growing deficit will erode the fiscal consolidation policies of the government.
With banking industry fragility and a naira under speculative pressure, 2019 will be a year of technological and investment opportunities but serious political and policy challenges.
The amicable settlement between Nigeria and MTN after an avoidable saga is a good way to end an eruptive year. A listing of MTN is the much needed booster shot the Nigerian stock market badly needs.”
According to the foremost economist, Nigeria’s 2019 election is being greeted with the classical reaction of an economic indifference curve, which is a combination of choices between commodity A and B which gives a consumer the same level of satisfaction or dissatisfaction.
‘Talking to a cross section of young people between the ages of 20 and 30, most respondents were unenthusiastic, indifferent and apathetic. Some considered it an Hobson’s choice. Based on this, we are anticipating voter apathy and a low turnout in the February election,’ he said.
Lagos Chamber of Commerce and Industry, Muda Yusuf, Director-General would like “foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalization of Lagos ports environment, the oil and gas sector reform, especially the petroleum industry bill; better debt management strategy to ease the burden of debt service, reduction in the cost of governance at all levels; improvements in the domestic revenue (particularly independent revenue) to reduce volatilities in government revenues,” in the new year.
President of the Nigerian Employers’ Consultative Association (NECA), Dr Mohammed Yinusa says the implementation of Nigeria’s 2018 budget, benchmarked at $60 per barrel could also suffer should the slump persist in the oil price at the international market persists.
Consequently, Yinusa says, “Nigeria’s economy which is currently stabilising on boost in crude oil price, could be adversely affected as crisis in foreign exchange, primarily sourced from the oil sector was projected to worsen.”
Yusuf believes that the non-passage of the Electoral Act and Petroleum Industry Bill (PIB), are considered as sore points for the economy and polity, adding, the “downstream sector as currently constituted is unstructured and largely uncompetitive.”
In the last quarter of this year, the globa oil industry witnessed steady decline in prices of crude oil prompting several oil producing countries especially OPEC to consider production cuts.
In fact, OPEC, Russia and other producers have agreed to remove 1.2 million barrels per day from the market beginning in January. Consequently, some observers also said price volatility in 2019 may be inevitable considering the conflicting priorities of the three top world producers, namely the US, Saudi Arabia and Russia.
The move follows a more than 30 percent drop in oil prices that saw international benchmark, the Brent crude, fall from more than $86 a barrel to a 13-month low of $57.50 last month.
Apart from the downward movement in the international prices of crude oil in the outgoing year,2018 witnessed a mixed feeling among the stakeholders in the country’s oil and gas industry.
Muda Yusuf said data from the Organisation of Petroleum Exporting Countries (OPEC) shows that oil prices are trending down at $54 p/bl on 22nd December 2018 from its peak of $88p/bl in the month of September and October 2018.
He said this is already below 2019-2021 Medium-Term Expenditure Framework (MTEF) and 2019 budget benchmark of $60p/bl. The declining global oil price will likely distort FG’s economic projections for 2019 as well as impact adversely on its MTEF if the trend is not reversed.
Consequently, Yususf said in 2018, the oil and gas industry was characterized by weak incentive regime to facilitate the penetration of the use of cooking gas in the country as well as high cost of the LG equipment as result of high import tariff. He also said the industry was characterized by the discriminatory VAT imposed on the locally sourced LPG, while imported LPG does not attract VAT.
“Petroleum subsidy debts and non-payment of interest rate and exchange rate differentials to oil marketers is affecting the ability of the oil marketers to meet up with their financial obligations with the banks. This is also having a multiplier effect on the revenue of the banks/lenders. It also has implications for the stability of the banking system and the growth of non-performing loans in the financial system,” he added.
A banker and chieftain of the Peoples Democratic Party (PDP), Dr John Ayuba says the failure of government to provide the much needed enabling environment led to the drought of Foreign Direct Investments (FDIs).
At the home front, Ayuba said the economy did not fare betther as local investors were hounded with harsh and vindictive policies.
According to him, the economy needs a leaders with business acumen and who understands and with a face of business.
Chief executive of Abuja based Muregi Associates, Dr. Husseini Mohammed in his response to inquiry titles his submission “Economic Annus Horriblis.”
As the above indicates, Commenting or writing in assessing the Economic situation of the country in 2018 is not farfetched considering a number of factors, namely, Inflation, Unemployment, Manufacturing, Private Sector Performance and indeed the overall activities of the socioeconomic indicators all proved by and large negative.
Manufacturing sector, which is the engine of economic growth in terms of Capacity utilization, was too low and generally considered unacceptable or unrealistic for any meaningful economic growth. In a way it wouldn’t be out of place to conclude that, the year 2018 is what in Latin we call “Annus Horriblis”.
On the expectations for next year, he said, “we need to be cautious because the current budget of N8.83 Trillion Naira with a production of 2.3 barrel and a benchmark of $60per barrels is already questionable by the current sport market of $53 per barrels and OPEC’S cut in our production to a mere 1.93 barrels.
For the Economy to turn around, we must look inwards in the development of Agriculture and other allied resources with a major emphasis on the small-scale industries as enablers.
Leadership is everything, election is just about a month away, therefore, whoever emerges as the president be it the current leadership or the PDP leadership will have Herculean task in managing the state of affairs of the country.”
Engineer Martin Onovo told our correspondent that the “year, just like the previous years under the current administration, didn’t witness salutary growth because the handlers of the country have no idea of how to pilot it let alone functionalize the nation’s section.
He said the development explains the lingering crisis of confidence between the Minister of State for Petroleum Resources, Ibe Kachikwu and the group managing director of the Nigerian National Petroleum Resources (NNPC),Maikanti Baru, fuel subsidy payment, corruption and all other inherent infractions which ordinarily should have fizzled out given the right leadership.”
On power situation some analysts say despite the recent claim by the country’s Power Minister, Babatunde Fashola, that the current administration has taken power situation to the next level, the Senior Staff Association of Electricity and Allied Companies(SSEAC) and critical stakeholders felt the minister played to the gallery .
National president of the Union, Comrade Chris Okonkwo told newsmen that Nigeria didn’t achieve any substantial growth in the power sector in 2018,adding that the power distribution companies had a field day by imposing estimated billings on customers, denying them prepaid meters and shunning investment in infrastructure that could boost power supply in the country.
A leader of a pressure group organization in Lagos, Comrade Chinedu Bosah corroborated Okonkwo’s position, saying the claim of improved power supply by the current government in 2018 is a mere political gimmick
Consequently, President of the Nigerian Employers’ Consultative Association (NECA), Dr. Yinusa, has recommended that government should see to a logical conclusion its power sector reforms to deliver stable power supply to the populace, while priority should be given to the rehabilitation of deplorable road networks while constructing additional ones across the nation.
He said: “There is the need for close monitoring and regulation of the activities of road concessionaires to ensure optimum benefits from such concessions. The transportation and haulage system is virtually road dependent. This is not good for the economy.
“Development of alternative transport system, particularly the water transport, railway, both intra and interstate, should be accorded high priority.
“We recognise the efforts of government in respect of its rail modernisation programme and recommend that the programme should be accelerated in view of its centrality to the growth of internal trade and industrial competitiveness.”
With the upcoming general elections, he advised Government not to focus solely on politics at the expense of the economy and good governance, but continue to work assiduously to sustain the steady stabilisation of our economy through informed policies to position it for continued growth.
However, on the anti-graft war, the government, according to some analysts was able to change the status quo to an extent, as they all agree that it became obvious that there was a new sherrif in town.
Indeed, one of the landmark strategies initiated by the government was the Whistle-blower policy, which, according to the government, has yielded several recoveries, including, N13.8 billion from tax evaders and N7.8 billion, $378 million, £27,800 in recoveries from public officials targeted by whistleblowers.
It also said the National Economic Council (NEC), under the Chairmanship of Vice President Yemi Osinbajo, approved the audit of key federal revenue generating agencies, which has so far yielded a total sum of N526 billion and $21 billion. The money was underpaid to the Federation Account between 2010 and 2015.
However, while the ruling APC goes to the 2019 polls with some of these achievements, many believe the government may have fallen short of great expectations Nigerians including improving their living standards. But, rather, what they have experienced in the last twelve months was more of despondency and hopelessness

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We Inherited Huge Debt -Fubara …As Gov Otti Inaugurates Aleto-Ogale-Ebubu-Eteo Road Project

Published

12 hours ago

May 15, 2024

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has revealed that a huge debt burden was left behind for his administration to settle with several contractors who handled different projects for the immediate past administration.
Governor Fubara made the revelation at Ebubu community, venue of the inauguration of the reconstructed 10.89KM Aleto-Ogale-Ebubu-Eteo Road in Eleme Local Government Area, Rivers State yesterday.
The Governor emphasised how baffling the debt owed the contractors amounted to, given the public impression created of a clean balance sheet maintained with contractors.
He said, “This is to let the world know that if there is one problem this administration has, it is the huge debt burden. Most of the projects that are being commissioned, the contractors are coming for their balance-payment and it is running into billions.
”I have said that I don’t want to talk. I don’t want to talk because I was part of that system. But, when you keep pushing me to talk, I will say it so that the people will know the true situation of things and be properly informed.”
Governor Fubara expressed delight over the commencement of the celebration of his One Year in Office Anniversary with the inauguration of a road project in Eleme where he lived when he started off with his working life.
The Governor stated that the road was awarded on August 14, 2023, to China Civil Engineering Construction Corporation (CCECC) at the cost of N6.7billion.
He said that completed project now serves as a proof that his administration is still focused on delivering development to the people despite the many troubles thrown at it.
”I am happy to be here and to join the good people of Rivers State to start this wonderful celebration of our first anniversary in the face of all the troubles. It shows that we are still focused, not minding the level of distractions.
”This road was awarded to CCECC as a contractor. It was awarded on the 14th of August, 2023. I believe that 14th of August was within my tenure. I am not saying ‘I’, but it was this administration that awarded it.
”This project was awarded at the cost of N6.7billion, and I can say boldly that no kobo is remaining. We’ve paid the contractor its complete sum. Our gathering here is to tell our people that their problem is our problem.”
Emphasising the significance of the road, Governor Fubara said it is a bypass to be used by motorists to avoid the deplorable sections of the East-West Road now under reconstruction, and by extension, a support to the Federal Government’s efforts to give hope to Nigerians and make life better for the people.
Governor Fubara said: “What we are doing today, is it not help to the Federal Government? Is it not a show that this Government has the interest of the people at heart and it is supporting and doing everything to make the Federal Government succeed?
”So, when people come out and say some funny things, I laugh. Why are we doing this? When this administration came on board, Mr President christened his mantra ‘Renewed Hope’ to give Nigerians hope.
”What we are doing today in this State is giving our people that hope to complement what Mr President is doing at the national level.
”It is not about social media. We are talking about action. Genuine actions that make positive impact in the lives of our people,” he said.
Governor Fubara explained the rationale behind the invitation extended to Abia State Governor, Dr Alex Otti, to inaugurate the project, saying he is not an artificial integrity man but a pragmatic man.
Sir Fubara stated: “I invited him because he is not an artificial integrity man. He is an action integrity man. He is not like the one who would gather to talk because they just want to talk.
”He is a man who came into office, in the face of difficulties and challenges, just like we are here, but he is making impact in the lives of Abians.
”So, I will continue to identify with good governance. I will continue to identify with people who want to make impact in the lives of the people. Our Government, as we promised you on day one: the people first.”
Governor Fubara alluded to an unnamed person who insinuated that on assumption of office, he started a fight against the Federal Government, and wondered the veracity of such allegation.
”We are talking about Federal Government that is giving us support, and we appreciate their support. But there is a rat in the house that is eating the bags of garri. So, you can imagine such situation.”
Explaining further, the Governor noted that somebody in the house was stoking crisis to distract both the State and Federal Government from delivering their promises to give the people hope and leave lasting legacies impactful policies and programmes for posterity, and promised the people that the black legs in the family will soon be exposed for what they are.
Governor Fubara thanked the good people of Eleme for their support during the period of the execution of the project, as according to him, the contractor never complained of any challenges from the communities, adding that rather the people gave all the cooperation required.
The Governor noted that with what has been experienced, his administration is now encouraged to come back and undertake more projects as he believed that they will be protected.
Performing the inauguration of the project, the Abia State Governor, Dr Alex Otti, congratulated Governor Fubara for what he has done in remembering to execute a road project in Eleme community where he had once lived.
Governor Otti said, “I have always said it that leadership is about service. Anytime leadership departs from service, then, you are getting it wrong. Service should be service to the people, not service to self or very few interests. Anytime you are serving few people rather than the majority, you need to go and look at yourself again.
”So, for me, it’s all about good governance. Clearly, Governor Fubara came prepared, and I don’t believe that any distraction is enough to take his focus away from improving the welfare and interest of the people.
”So, I can assure you, Rivers people, that the dividends of democracy that you are seeing now is still a dress rehearsal. It is early in the morning, and I am sure that in no distance future, you will be seeing more.”
Governor Otti charged Eleme and the good people of Rivers State to continue to support the Governor of the State to do even more to make life easy for the majority.
He embossed that no matter how the dice is flipped: “Power belongs to God, no human can arrogate to himself the capacity to give power, except you have the capacity to give life. Of course, you can take life, but you cannot give it.”
In his project description, Permanent Secretary, Rivers State Ministry of Works, Engr. Atemia Briggs, said the project was awarded on 14th August, 2023 to CCECC.
Engr Briggs explained that the road is 10.89 KM long, has a width of 10.5 meters, with a drain length of 10.1 KM, adding that it will, in the overall, serve human and economic needs of the people.
In his remark, the Executive Director, South-South Region of China Civil Engineering Construction Corporation (CCECC), Engr. Eric Shen, expressed gratitude for the confidence reposed in the company to handle the project, which has been completed with support from the Government, and cooperation from the host communities.
He said they were committed to delivering quality road that will serve the people for a long time, which was why they contended with the challenges of heavy vehicular traffic, daily business activities by traders on the road, and the rains to ensure timely delivery of the project within eight months.
In his welcome remark, the former Nigerian Ambassador to the Netherlands, Hon Orji Ngofa, acknowledged that the project, popularly known as the Old Bori Road, had collapsed as a result of the heavy vehicular traffic taken off the East-West Road that became deplorable, and is now being reconstructed.
Ngofa thanked Governor Fubara for reconstructing the entire stretch of the road, which now better improves the wellbeing of the people while also serving the transportation and economic needs of all users of the road.
While presenting the traditional kolanuts to the visitors, the Oneh-Eh Eleme, Chief Philip Osaro Obele, had conferred on Governor Fubara, the traditional title of Emere Ajuri Oneh of Eleme (meaning King of Peace of Eleme Kingdom).

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2026 World Cup, My Immediate Task -Finidi

Published

13 hours ago

May 15, 2024

The Tide

Head coach of the Super Eagles, Finidi George, has said that his immediate task and priority is to qualify the nation for the 2026 World Cup slated for Canada, Mexico and U.S.
The Board of Nigeria Football Federation (NFF) on April 19, appointed George as Head Coach of the Super Eagles.
George stated this at his unveiling as the new head coach of the Super Eagles by the Nigeria Football Federation (NFF), at the Moshood Abiola National stadium on Monday in Abuja.
The former Ajax Amsterdam winger, who was assistant to former Super Eagles gaffer, Jose Peseiro, was jointly unveiled by the NFF President, Ibrahim Gusau and Sports Minister, Sen. John Owan Enoh.
“For me, my first target is to make sure we are in line to qualify for the 2026 World Cup, the AFCON qualifiers will also be coming up soon.
“But the major target for me is the two games we have, we will do everything to win against South Africa and Benin Republic.
“Once we do that we will have set the tone and we will take it from there,” he said.
The coach warned that going forward; players will be invited to the Super Eagles based on regular playing time in their clubs and commitment to the national team.
He dismissed insinuations about having rift with some players in the Super Eagles, stressing that his relationship with the players was ‘perfect’ and professional.
“My relationship with the players is very perfect. I will try to improve on my relationship as this will be different. You will not hear any controversy on my relationship,” he said.
Earlier, NFF President Ibrahim Gusau said the coach will be given all the support he needs to succeed in the task ahead.
“We have given our coach the opportunity to choose his assistants. We will not impose anybody on him.
“We are going to engage the assistants on game basis but will pay the head coach monthly salary. We want to avoid salary issues,” he said .
The Minister of Sports Development, Sen. John Owan Enoh stressed the importance of having and supporting indigenous coaches to succeed.
“We have an opportunity to have a local coach to lead the Super Eagles. Back then in my University days, I would go to UJ Eseune stadium to watch Calabar Rovers and see Finidi George play.
“I am honoured to be here to witness his unveiling, if you love Nigerian football, you must love and support Finidi George. His success will bring joy to Nigerians.
“Any country I find an indigenous coach sitting on the bench, I always feel very proud and I am glad that we have an opportunity that has a Nigerian coach, Finidi George, as football men national team coach, “ he said.
The details of the contract was not revealed.
The coach has picked ex-international, Daniel Amokachi as assistant coach, Olatunji Baruwa as goalkeeper trainer, Mehmet Ozturk, match analyst, Benjamin James and Chima Onyeike, fitness trainers.
The immediate task of the coach is to get the Super Eagles back on track in the 2026 World Cup qualifiers where Nigeria currently sit third in Group C, with two points from two matches.
Nigeria drew with Lesotho and Zimbabwe in the first two matches in the qualifying series in November.
The Super Eagles will face South Africa and Benin Republic in June, in what has been described as a make or mar clash.

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Fubara Moves To Restore Dignity Of Rivers Assembly Quarters … Says New Speaker Has Emerged …Inspects Emohua-Kalabari Road

Published

5 days ago

May 10, 2024

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has explained that his visit to the residential quarters of the State House of Assembly is to undertake on-the-spot assessment of condition of the structures for a possible rehabilitation work to restore its status and make livable.
Governor Fubara gave the explanation after he inspecting the 15.24 kilometers long Emohua – Abalama -Tema Junction dual carriageway road project yesterday.
The Governor said: “Is the Assembly quarters not part of my property? Is there anything wrong in going to check how things are going on there?
“You are aware of the developments. We have a new speaker, and I went there to see for my myself how things are. There might be a few things I might want to do there for the good of our people.”
The Governor, who took a walk round the facility, said that he decided to visit the place to get better appreciation of what needs to be done to make the quarters conducive for lawmakers.
Commenting on the road project, Governor Fubara said he was assessing the extent of job that had been done to know what else was needed in preparing the road for commissioning during his one year anniversary.
He said, “As a matter of fact, we added this section of the road as one of the projects we will be commissioning. So, I needed to see it myself, and what is remaining is just the lighting. By the grace of God, we will commission it.”
Governor Fubara pointed out that the road project was inherited from the immediate past administration but a greater chunk of the cost was borne by his administration.
He said: “We feel justified to add it as our project and to commission it for the good of our people here.
“Governance is all about the people. When the people are out of the centre of governance, then it is no longer governance.
“So, this road, as we all now know, was in a very bad state. A lot of criminal activities were being carried out here: kidnapping and all sorts of things. So, putting this road in order is appropriate.”
Governor Fubara said further: “You can see the little manhour we spent coming here. Before, it takes you 30 to 45 minutes to drive from Emohua to this place. But look at it, less than 15 minutes we are here.
“So, it is about the people, the good of the people, making life easy for the people. That is the way I see governance. Anything outside that has nothing to do with me.
“It is not about me. It is not about glory to me as a person. I am just a vessel that God is using to provide succour to the good people of Rivers State, and more especially, our dear people of Kalabari extraction.”