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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.”
Obioma Obikeze, an internationally-acclaimed medical doctor will on April 1, assume duties as its new Managing Director and Chief Executive officer (MD-CEO) of Healthnomics HMO Plc, in a move the organisation, said is to tap his huge experience in healthcare policy and financing as well as strategic leadership and expertise in health insurance and managed care operations.
A statement by the organisation, announcing the appointment, cited Obikeze’s background including his transformative roles at the Federal Medical Centre Yenagoa, where he led significant operational enhancements in health insurance and managed care programmes, saying his commitment to excellence in healthcare leadership remained evident from his recent tenure as Acting Head of Clinical Services and Training at his institution.
The statement, signed by Kenneth N. Ozoilo, a Professor and Chairman, Board of Directors, said further relished the quality of the new organisation’s boss, saying with a medical degree from the University of Nigeria, a fellowship of the West African College of Physicians, and a master’s degree in epidemiology and medical statistics from the University of Ibadan, fitted perfectly into the company’s desires and mandate.
“Obikeze was also a World Bank Exchange Scholar at the Heller School for Social Policy and Management at Brandeis University, Massachusetts, USA, graduating with a master of science (MS) in International Health Policy and Management. He also holds certifications in Health Care Financing for Universal Health Coverage from prestigious institutions like the World Health Organization, Geneva, Switzerland, and Heidelberg University, Germany.
“We are pleased to have Dr. Obioma Obikeze lead our team. His exceptional expertise, track record, and uncommon commitment make him the perfect candidate to guide our organization towards impactful healthcare solutions for our clients,” Ozoilo, said.
On his part, the new MD-CEO, was quoted as saying: “I am thrilled to lead Healthnomics HMO Plc on our mission to redefine healthcare quality through responsible and accountable purchasing arrangements. Our dedicated team is focused on enhancing health outcomes, elevating the patient experience, and fostering positive collaborations and accountability with our stakeholders.”
Ozoilo, who described the company as described as a visionary Health Maintenance Organisation driven by its mission to enhance access to quality and affordable healthcare services to individuals, families, and corporate organisations at affordable costs. We work to improve health outcomes, enhance responsible patient experience, and make a positive impact on our communities.
Onyekachi Nwaebonyi, Senator representing Ebonyi North Senatorial District, at the National Assembly, is still talking tough hours after raining expletives on Oby Ezekwesili, former Minister of Education, calling her a thug, an old woman with smelly mouth among others during an engagement in the Senate, on Tuesday.
The ugly encounter took place at the sitting of the Senate Committee on Ethics, Privileges, and Public Petitions during the commencement of hearing on the petition of sexual harassment brought by Natasha Akpoti-Uduaghan, the Senator representing Kogi Central against Godswill Akpabio, Senate President.
Contrary to the belief in some quarters that he spoke in the heat of the moment and on reflection would be regret the words he used at the former Minister, before then Vice President of the World Bank for Africa, Nwebonyi, palpably still burning with anger, told his host on Politics Today, a public affairs programme on Channels Television on Tuesday evening, that he had no such regrets.
Justifying his obstinate position, he accused the former Minister of bringing the insults on herself deservedly for ordering him to shut up, even when she knew she was speaking to a Senator of the Federal Republic of Nigeria, adding that such insult to his person would never be allowed.
Hear him: “It started when she was asked to be an oath because she said she was a witness. She said, ‘no she can’t be on oath, she can’t oath.’ As a person, I said I am willing to be sworn on oath so that I can give my own evidence. I was addressing the presiding office. She turned to me and said, ‘Will you shut up your mouth, you are a hooligan.”
Absolving himself of blame at the choice of his word in which he thundered: “How can I regret the scenario? I gave it to her. Is it fair for her to address me that way? As a former minister of the federal republic and a grandmother, ask her first.”
Oby Ezekwesili, former Minister of Education, on Tuesday, gave further details on the altercation between her and Onyekachi Nwaebonyi, Senator representing Ebonyi North, at the National Assembly, during the commencement of hearing of the sexual harassment case filed against Godswill Akpabio, Senate President by Natasha Akpoti-Uduaghan, Senator representing Kogi West.
At the Senate Committee on Ethics, Privileges, and Public Petitions, the two had engaged each other in a shouting match, using unprintable names, with the Senator virtually going overboard to as much as calling the former Vice President of the World Bank, a whore.
A guest at Prime Time, a public affairs programme of ARISE NEWS Network, hours after the incident, the former Minister admitted telling the Senator to shut-up, but explained that it was because the team of Akpoti-Uduaghan, was overly stressing Senate rules over the constitution and giving undue preference to the Akpabio camp.
Giving a detailed account of the encounter, she said: “I was there as the Chair of the global body known as the Women Political Leaders. It is based in Brussels, but it is a global body for all women who have been Presidents or former Presidents, Prime Ministers, parliamentarians and members of cabinet of countries.
“So, it is a global flagship for women political leadership. And so, I was there as a witness on her side on the basis of the expert knowledge that we have over this issue around the world. It is based on data that this is a problem. One out of every three women, has faced one form of sexual-based violence or the other. And so, a lot of countries are paying serious attentions to it, because it is inimical to the society.”
The former Minister who was present at the hearing alongside Abiola Akiyode-Afolabi, lawyer to Zubairu Yakubu, who raised the petition on behalf of the Kogi Senator, one in the four females in the 10th Senate, narrated how the petitioners raised the issue of bias against the committee, said she became more displeased, when the committee tried to dismiss the Natasha team as unserious.
“In fact the words they used was that ‘we do serious things here, we don’t have time for unserious things.’ At that time, I had my hand up and I said, ‘I actually think that was a wrong use of words, we are not unserious people, this is a serious matter.’ Many conversations went on. Eventually, the Senate Ethics Committee, decided that based on the fact that the petitioner was saying that he wasn’t going to go into his main petition until they assured him that on the two objections that he had, they said, it meant we were not ready to engage on the matter.
“Then, suddenly, they also said, by the way, this matter is sub-judice because there are two cases in court and they mentioned the case of the wife of the Senate President and that on the basis of that they actually really shouldn’t… it was at that point that Dr. Abiola said, what’s the point, why are we here?
“When all that was going on, then, this Senator, who I would not acknowledge by mentioning his name, he then said if they are not ready about giving any testimony, I am here representing the Senate President as a respondent. I’m prepared to speak because we can’t continue with this. Then I said to him, ‘can you please shut up?’ Because we were just told that we couldn’t speak. And you have been speaking without any form of an equivalent treatment.
“You said we couldn’t speak because we were not ready to go into any conversation without our objections being addressed. Yes I said that. But he was already provoked, by the fact that he felt that we were not serious. Part of what inflamed it was that the petitioner said, by the way, it is this Senator that made a lot of statements about my Senator in words that were not complimentary.”
Obikeze, globally-acclaimed medical doctor, becomes Healthnomics’ MD-CEO
I don’t regret my insult on Oby Ezekwesili, she deserved it – Nwaebonyi
Why I asked Nwaebonyi to shut up – Oby Ezekwesili
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