News
Economy will bounce back soon – FG *Current pains expected – Edun
Nigerians have no need to despair, the Federal Government assured on Tuesday over the parlous state of economy, saying the policies of President Bola Ahmed Tinubu Administration are yielding fruits, and that positive pictures of a complete rebound are already emerging.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Atiku Bagudu, Budget and National Planning, Yemi Cardoso, Central Bank of Nigeria (CBN) Governor (CBN) and Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), all part of the President’s Economic Team, were at the House of Representatives on Tuesday, where they painted a positive picture of the economy.
Not only did the foresee an imminent drop in the high cost of living and inflation, they also spoke on the parlous fate of the Naira, Nigeria’s national currency against foreign currencies, particularly the dollar, saying it was only a matter of time for it to stabilise.
Edun, who said the current challenges in the economy were expected especially after the withdrawal of petrol subsidy, which would have left the country on the path to economic disaster, if sustained, assured that President Tinubu was committed to protecting the poorest and the vulnerable.
Hear him: “Where we are as a nation economically is a much better place than we were on the 29th of May 2023. Before the implementation of the 8-point agenda of the President began, we were in an unsustainable place in terms of the fiscal situation of Nigeria. We were on the road to economic disaster.
“We had expenditure which was wasteful and unsustainable by way of the subsidy. Not just on fuel, but the subsidy on foreign exchange which confused the incentive framework and people were changing cheap dollars in order to make instant profits. Of course, in turning back from that road, as we have heard, there will be dust.
“However, bold measures have been taken and there have been positive results. If we look at the finances of the government today, there have been benefits to the federation account; there has been a reduction in the consumption of petrol by about 20 million litres because there was smuggling apart from wasteful use of petrol.
“Likewise, there have been other benefits which have accrued as a result of the changes that have been made. However, there has been cost. Inflation has increased. The cost of living has spiked and right from the outset, Mr. President committed to making sure that the poorest and most vulnerable were not left behind. That is why the palliatives and the interventions have been rolled out.
“Mr. President made a commitment to confront, to engage and indeed to use state power to subdue the vested interests that had resulted in oil production and sales going down to as low as 1.25 mbpd. We have 1.65 barrels per day and rising. That is the quickest way to give relief. The governor of the CBN said that in 2011 we were virtually at 100 billion dollars a year from oil sales. Now we are on the way back up; 1.65 million bpd and rising.”
Edun, also spoke on the current effort to halt rising inflation, saying: “A large element is food inflation. In fact, food inflation accounts for 33 per cent of the consumer price index. So, when you attack food production, raise food production and bring down the price of food, you bring down inflation. You get the chance to bring down interest rates and there lies the road to investment. I was recently in Nasarawa and met all the stakeholders in the agricultural chain.
“They committed with confidence to a very good dry season harvest. We intervened in that sector, from fertilizer, from grains supply to funding for rice, maize, wheat and cassava to bring 400, 000 hectares under production. So, these are the steps being taken to bring inflation down to stabilize the economy and prepare for investment.
“There will be further intervention on behalf of the poor and vulnerable to assist with the cost-of-living rise, which is the inevitable result of having waited so long to turn the corner. Let us be confident, assured and calm that Nigeria has turned the corner in terms of its economic management and the way forward is up. At the same time, the poor and vulnerable would be assisted at every turn.
“I am happy to inform you that as of yesterday (Monday), the volume of transactions in our markets was over $844 million. This is the first time in many years that it has achieved this level. I acknowledge that despite these commendations, the concerns regarding the cost of living and currency rates remain.
“The urgency of the matter is not lost on us at the CBN and I want to assure you that we are working tirelessly with colleagues from across governments including the leadership of this House to bring lasting solutions.
“Governments around the world must grapple with rising fiscal pressures, necessitating a credible medium fiscal framework to effectively manage debt burdens. On the domestic outlook, we know that the Federal Government anticipates a 3.7 percent real GDP in 2024 slightly surpassing the estimated 3.75 percent in 2023.
“This optimism is backed by key government reforms and the expectation of improved prices and production which are set to drive economic growth. Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 per cent aided by improved agricultural productivity and easing global supply chain pressures.
“A market-driven exchange rate was intended to create a stable macroeconomic environment and discourage currency hoarding. However, short-term volatility attributed to speculation has been an issue. To address exchange rate volatility, a comprehensive strategy has been initiated to enhance liquidity in the forex market.
“This includes unifying FX markets segments, clearing outstanding FX obligations, introducing new operational mechanisms for BDCs, enforcing the net open position limits and adjusting the remunerable standard deposit facility cap. We understand the economic costs of these developments, not just for the economy but also as they affect ordinary Nigerians.
“However, these costs are temporary and our decisions would address a lot of fundamental issues bothering Nigeria’s economic landscape. These measures will boost FX inflows, stabilise the exchange rate and minimise domestic inflation. Put simply, the exchange rate is determined by the dynamics of demand and supply for a product or service. In essence, the value of the US dollar is determined by the balance of US dollars entering the country and demand for the US dollar among Nigerians.”
Bagudu, on his part, maintained that the government had been holding a series of meetings aimed at addressing these challenges, adding that the allocation of 39 per cent of the budget to capital projects was strategic, and for now, efforts were geared on revenue collection strategies.
Adedeji, who said the government was working to bring more people into the tax net to enhance revenue generation without increasing taxes, added: “For 2023, the target for the service was set at N10 trillion. Through the efforts of all of us, we achieved N12.3 trillion.
“This came about because of the bold decision taken by Mr. President by rectifying the distortion in our economic parameters, the removal of subsidy and the wonderful work also being led by the central bank in the unification of the exchange rate.
“This has had a serious impact in the last seven months of our collection because of the rates we use and because the waste from subsidy payments were curtailed. So, we have overperformance from both the VAT collection and company income taxes because of those that are dollar-based. We have the target for this year based on the approved budget to collect N19.2 trillion which is 7.2 trillion more.”
Seyi Makinde of Oyo State, Governor of Oyo State, on Thursday, finally threw his hats into the ring by declaring his intention to run for president in 2027, with a message – history beckons.
The governor, whose ambition has been a matter of speculations for months now and who had teamed up with forces angling to force President Bola Tinubu, out of power, told a teeming crowd in Ibadan on Thursday that time had come to reset Nigeria.
At a mega-rally to announce the alliance between the People’s Democratic Party (PDP), and the Allied Peoples’ Movement, (APM), Makinde, expressed worry over the dwindling fortunes of Nigerians, vowing to engage Nigerians to end the drift.
Hear him: “Without a multi-party system, there is no democracy. Where is our multi-party? Where do we go from here? We have been pushed to the wall.
“They calculated and self-opposition cannot unite but I am here to say that the opposition is the everyday Nigerian. This is the time for all us to ensure Nigeria works for us. This is the time to confront it fears. It is time to engage as citizens and not spectators.
“For the opposition political parties, this is the time to unite and work in unity and give our nation the much reset it needs. The time to reset Nigeria is now. Ibadan is the city of warriors. The first grand alliance is formed. The PDP and APM is formed. This handshake will allow us to field candidates from presidency to state Assembly. And so, I declare my candidacy for office of the president of Nigeria.”
Eyo Ekpe, a professor of cardiothoracic surgery at the University of Uyo Teaching Hospital (UUTH), on Wednesday, gave a detailed account on how operatives of the Economic and Financial Crimes Commission (EFCC) manhandled him on Monday.
He told reporters that he was at sea on why he should fall victim to the assault against his person and eventually arrested given that was not right person directly involved in the information the agency sought.
Some operatives of the EFCC who invaded the hospital, had whisked Ekpe away after firing teargas to scare away the workers, patients and visitors to the hospital, following what appeared like a fracas the ensued over what it claimed was a routine duty in the facility.
Ekpe, Deputy Chairman of the hospital’s Medical Advisory Committee (MAC), described how an operative had first entered his office to make inquiries on why the hospital was yet to give a response to an EFCC inquiry over a medical report linked to a suspect facing trial.
He detailed how he briefed the operative that the said response was being prepared and even went ahead to show him the draft of a letter in that regard, which needed to go through the gamut of official endorsement before being released.
Hear him: “The head of that internal medicine department looked at the report and also discovered that the name of the doctor that signed the report is not a member of staff of that department.
“I had prepared prepared a response to the EFCC on Monday, May 11, 2026, based on the findings. When the EFCC operative visited my office the next morning to collect the document, I told him that the response was ready in draft. I even showed him the draft, but told him that the document still needed approval from the Chief Medical Director (CMD) of the hospital before it could be officially signed and released.
“He pretended to have accepted that. He left, but later later returned with another armed operative and informed me that I was under arrest. I asked him why. I was not the one that issued the medical report. My name is not on the medical report. The report was not issued from my unit.
“But he said I would get the answer when I get to their office. I then asked him to at least wait for my staff member who I sent on an errand before joining them. But they refused.
“They started pushing me. They dragged me out of the office. Then I began to cry while they were dragging me. They had warned me not to speak. They had taken my phone. My cry as they were dragging me, attracted the workers to the scene, who enquired what was going on, but because they ordered me not to speak, I couldn’t say anything. They had their guns.
The members of staff of the hospital initially blocked them from taking me away. They then made a call. After that I saw many masked and armed men came violently, broke the protector, threatening the people that were around and people ran away.
“They picked some staff that were still by me. they dragged me and other staff, five of us into their van downstairs. By that time they discovered that the gate of the hospital were locked. So, they drove towards the gate and packed and the commotion continued. We were inside the van.
“I was so emotionally and psychologically traumatised that I couldn’t even look out of the vehicle to see what was happening outside. But I know that teargas and live bullets were shot. That’s all I can say for now.”
Joyce Abdulmalik, of the Federal High Court, Abuja, heard on Wednesday, how Zenith Bank raised alarm over the huge transaction in one of its branches by Abubakar Malami, former Attorney General of the Federation and Minister of Justice (AGF-MoJ).
The bank said it immediately filed a Suspicious Transaction Report (STR) in respect to the transactions, during its appearance in the ongoing trial of Malami, his wife, and son over allegation of massive looting of funds belonging to the Federal Government during his tenure.
Mashelia Bata, a compliance officer with the bank, who appeared as witness in the case, where Malami, et al, are facing a 16-count charge bordering on alleged money laundering to the tune of N8.7 billion, to which they pleaded not guilty, gave the testimony while being questioned on the bank’s roles in the matter.
Details of the testimony conveyed by the Economic and Financial Crimes Commission (EFCC), stated how the compliance officer who was cross-examined by Adebayo Adedeji, lawyer to the defendants admitted that the deposits in the account statements complied with the guidelines of the Central Bank of Nigeria (CBN).
Arguments had stretched when Adedeji, opposed Jibrin Okutepa (SAN), lawyer to the EFCC, who had asked the witness to explain the meaning of a suspicious transaction report, stressing that there was no ambiguity in the term.
However, Okutepa, in response, maintained that section 215(3) of the Evidence Act did not preclude him from re-examining the witness while urging the court to allow the question for proper explanation.
After Abdulmalik, agreed and overruled Adedeji, the witness told the court that banks were required to alert the Nigerian Financial Intelligence Unit (NFIU) about fund deposits coming in a repetitive pattern, adding: “Any deposition of funds seen in a pattern or repetitive, you must escalate it to the NFIU.”
-
Columns4 weeks agoAbike Dabiri: Did Obi raise a monster or you’re drunk on Tinubu’s poisoned chalice?
-
News3 weeks agoJandor: Tinubu didn’t endorses Hamzat *I’ve briefed President on my ambition
-
Columns4 weeks agoBe the hero that saved Nigeria! Open letter to Alhaji Atiku Abubakar
-
News2 weeks agoBREAKING: Makinde, Turaki, lose! *S’Court affirms Wike’s PDP leadership
-
Columns4 weeks agoNow VDM has become Sowore’s nemesis, does Peter Obi need anther advocate?
-
Features2 weeks agoJim Nwobodo: The Sun shines, thrills, at ‘The Vanguard Awards’
-
News1 day agoTinubu to African leaders: Copy Nigeria, produce your way out of poverty
-
News3 weeks agoADC: Fight, scatter them! *Presidency goads Kogi lawmaker on Mark’s leadership