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Nigeria taking steps to strengthen naira, says Edun

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Strategic steps are being taken by the Federal Government to de-dollarise the economy and boost the naira value, Minister of Finance and Coordinating Minister for the Economy, Wale Edun, said yesterday in the United States (U.S.).

He spoke during the investors parley held on the sidelines of the ongoing World Bank/International Monetary Fund Annual Meetings in Washington DC.

As a partially-dollarised economy, Nigerian operates with dollar bias for international trade, finance invoicing and of recent, store of value.

Under high and persistent inflation, market participants defend themselves by shifting to the dollar.

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The most common type of dollarisation is financial dollarisation (FD), or asset substitution, caused by a poor performance and falling value of the local currency.

The local currency is used more for payment transactions but is replaced by the dollar as saving asset or store of value.

Speaking on the theme: “A new Nigeria: An era of bold reforms”, Edun said that the government has asked  manufacturers and businesses to invoice in naira, instead of dollar, thereby reducing demand for dollar in the domestic market.

At the investors parley were Standard Chartered Bank, Goldman Sachs, JP Morgan, and strategic investors in the economy. Also present at the event are Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, Director-General, Debt Management Office, Patience Oniha, Director-General of the Budget Office of the Federation, Tanimu Yakubu; Permanent Secretary, Federal Ministry of Finance, Mrs. Lydia Jafıya among others.

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Edun, said government is also taking steps to ensure that more dollar flow into the economy, to stabilize and protect the naira.

The minister said: “We are asking people to invoice in naira, rather than dollar, thereby reducing the demand for dollar. We have moved to free market pricing in petrol, jet fuel, kerosene, and that is the first time in 40 years that we are doing that.”

According to him, increase in oil production means more dollar inflows into the economy.

He also spoke of the effort by security operatives to ensure sustained rise in oil production, adding that the financial markets and bond markets remain open to Nigerians in Diaspora to invest dollars to the economy.

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Edun explained that essentially, it was October 2, that petrol subsidy was effectively removed through market-pricing practices.

The minister said: “It is now that we will assess the gains of the subsidy removal, which will be a huge dividend to the people.”

On his part, Central Bank of Nigeria (CBN) Governor Yemi Cardoso, said the last Monetary Policy Committee took cognisance of petrol subsidy removal, in its decisions. He said the CBN will issue more Open Market Operation (OMO) bills, to ensure market mechanisms reflect effectively.

On reports, that the Nigeria National Petroleum Corporation (NNPC) is mopping up dollars from the open market, Cardoso said: “The NNPC buying dollars from open market is not for the CBN to determine, because the NNPC remains a customer that is entitled to make its business decisions.”

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He said with higher interest rates, more Nigerians will be more inclined to produce locally, even as inflows from Diaspora remittances continue to rise.

Deputy Governor, Economic Policy, CBN, Mohammed Sani-Abdullahi, said the apex bank was working to raise non-oil export earnings from around N3.6 billion to $10.3 billion. He said the external reserves have also hit a new high of $40.3 billion, and will continue to rise as oil production grows.

Sani-Abdullahi, said the Federal Government has taken strategic steps, to ensure that Nigeria remains a good investment destination for local and foreign investors.

Speaking on the naira, he said: “We’re not defending the naira, and we used to. We are rather building buffers. We want to improve supply organically, without the CBN putting in money all the time. We want to find that naira finds its natural level”.

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We want to address liquidity risks, and ensure that the market functions. We are still in price discovery, we want to get to transparency and market determined rate for the naira.

He attributed volatility and rising demand for dollar to people’s belief that forex will not be available when they need it, hence the rush for the greenback.

Sani-Abdullahi, said there has been work to strengthen public finance, make tax administration and collection stronger, and build non-oil export economy.

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List: FG endorses 33 more universities

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The Federal Government has endorsed 33 new universities across Nigeria, increasing the total number of universities in the country to 309.

The approvals include seven federal universities, six state-owned universities and 20 private universities.

The seven new federal universities are the Federal University of Environment and Technology, Tai, Rivers State; Federal University of Applied Sciences, Kachia, Kaduna State; Tai Solarin Federal University of Education, Ijagun, Ogun State; Federal University of Agriculture and Developmental Studies, Iragbiji, Osun State; Federal University of Technology and Environmental Studies, Iyin-Ekiti, Ekiti State; Federal University of Agriculture and Technology, Okeho, Oyo State; and the Federal University of Health Science and Technology, Tsafe, Zamfara State.

The six new state universities are Abdulsalam Abubakar University of Agriculture and Climate Action, Mokwa, Niger State; Ebonyi State University of ICT, Science and Technology, Oferekpe, Ebonyi State; University of Aeronautics and Aerospace Engineering, Ezza, Ebonyi State; Benue State University of Agriculture, Science and Technology, Ihugh; Cross River University of Education and Entrepreneurship, Akamkpa, Cross River State; and the University of Innovation, Science and Technology, Omuma, Imo State.

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The approvals also include 20 private universities.

Among them are Omega University in Delta State, Regnum Medical University in Lagos State, Transatlantic University of Medicine and Health Sciences in Anambra State, City University in Ogun State, University of Fortune in Ondo State, Eranova University in the Federal Capital Territory, Minaret University in Osun State, Abdulrasaq Abubakar Toyin University in Kwara State, Southern Atlantic University in Akwa Ibom State, Lens University in Kwara State, Monarch University in Ogun State, Tonnie Iredia University of Communication in Edo State, Isaac Balami University of Aeronautics and Management in Lagos State, Kevin Eze University in Enugu State, Bridget University in Imo State, Leadership University in Abuja, Jimoh Babalola University in Kwara State, Greenland University, JEFAP University in Niger State, Azione Verde University in Imo State and Unique Open University in Lagos State.

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FG bars MDAs from awarding contracts without warrants

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Disturbed by the manner Ministries, Departments and Agencies of Government, MDAs flagrantly spend money without adequately aligning with Revised Bottom-Up-Cash Management Policy Framework, to this end, the Federal Government welded the big stick by barring MDAs from awarding contracts without warrants.

Ministry of Finance in a circular has ordered that due process must be followed or heavy sanctions awaits such government bodies.

In a circular signed by the Minister of Finance, Taiwo Oyedele in a sighted by this medium, it was expressly stated that :”The revision of this policy will further ensure that MDAs comply with statutory and regulatory provisions governing public financial management”.

In the memo it was also stated that “It should be noted that Accounting Officers who contravene this policy shall be personally liable for any resultant commitments, in accordance with the provisions of • Financial Regulation 310 (Personal Responsibility for Expenditure • Public Service Rules 030402 (Serious Misconduct • Fiscal Responsibility Act Section 48 (Offences and Penalties – Independent Corrupt Practices and Other Related Offences Act (ICPC Section 22 Sub-sections 4.

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Under the new framework, no MDA is permitted to issue letters of award, sign contracts or enter into financial obligations unless the corresponding Warrant or Authority to Incur Expenditure covering the full or committed portion of the contract sum has been duly released by the Honourable Minister of Finance and Coordinating Minister of the Economy to the Accountant General of the Federation.

The circular also makes it clear that budgetary allocations alone do not constitute legal authority to spend public funds.

According to the directive, “Estimates in the Appropriation Act or budgetary provisions do not confer automatic spending authority. Only duly released Warrants/AIE issued by the Honourable Minister of Finance and Coordinating Minister of the Economy in line with Financial Regulation 301 confer legal authority to incur expenditure.”

The policy cites Financial Regulation 415, Section 22 of the Fiscal Responsibility Act, 2007, Section 16(1)(b) of the Public Procurement Act, 2007 and relevant provisions of the Independent Corrupt Practices and Other Related Offences Act as the legal basis for the revised framework.

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Government said the new measures are designed to align financial commitments with actual funds availability, strengthen expenditure controls and halt the growing accumulation of unfunded contractual liabilities arising from contracts awarded without the necessary financial backing.

The circular also introduces changes to the cash management process by abolishing the requirement for MDAs to submit monthly cash needs before the issuance of Warrants. Instead, Warrants will be issued based on approved budget implementation priorities and available Capital Development Fund balances.

In addition, all MDAs are required to prepare quarterly cash plans in line with their ministerial priorities and procurement plans for submission to the Office of the Accountant General of the Federation to improve cash flow forecasting and budget execution.

The Federal Government warned that Accounting Officers who disregard the directive would bear personal responsibility for any commitments arising from contracts awarded in violation of the policy.

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It stated that such officers would be held liable in accordance with the Financial Regulations, the Public Service Rules, the Fiscal Responsibility Act and other applicable laws governing public financial management.

The directive takes immediate effect and supersedes all previous instructions inconsistent with the revised framework. It also provides that all 2026 capital projects across Federal Ministries, Departments and Agencies shall be implemented in accordance with the new policy.

The government directed all Accounting Officers, Directors and Heads of Finance and Accounts, as well as Internal Audit Departments and Units across MDAs and other arms of government, to ensure strict compliance with the circular.

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Posterity will judge you well for devt of FCT -First Lady Remi Tinubu

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…Commends Wike’s Green Transformation of Abuja, Urges States to Engage Youth in Environmental Protection

First Lady of Nigeria, Senator Oluremi Tinubu has commended the Minister of the Federal Capital Territory (FCT), Nyesom Wike, for transforming Abuja’s City Gate into a major recreational and environmental landmark.

She was speaking during a ceremony to honour the FCT Administration for its environmental efforts which she said is in line with the just concluded category of the ongoing Green Nigeria Challenge of the Renewed Hope Initiative.

Senator Oluremi Tinubu said she was impressed by the transformation of the City Gate, describing it as “unbelievable.”

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She stated that despite a ₦50 million prize set aside under the Green Challenge to encourage states to reclaim abandoned spaces and dumpsites, no state entered for that category of the competition.

“It was a ₦50 million prize money and they didn’t enter. This was supposed to get our youth involved,” she said.

The First Lady explained that the initiative was designed to encourage states to convert neglected public spaces into clean and attractive environments.

“The transformation reflects the vision behind the just concluded Community Category of the Challenge which was designed to encourage youth groups to transform degraded public spaces, including dumpsites and abandoned areas, into green parks, gardens and other eco-friendly spaces. Our goal is to compliment government’s effort in beautifying our environment and promoting healthier communities towards improving the quality of life of our people.”

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“The remodeled Abuja City Gate is an excellent example of what abandoned public areas can become: a transformed key national landmark that warmly welcomes all Nigerians and visitors to our nation’s capital.”

“When I saw what he did with the City Gate, my God, unbelievable, unbelievable. I want to thank him. He’s done very well.”

“This was to turn around abandoned spaces, dumpsites, and we see a lot of it around the states.”

Senator Oluremi Tinubu also appealed to Wives of State Governors to mobilise the youth to participate in environmental clubs and sustainability initiatives in schools and tertiary institutions.

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“I’m using this opportunity to appeal to our First Ladies: Get our young children into the environmental clubs and environmental societies for our youth in tertiary institutions.”

“I remember when I was in the College of Education, I was a member of the Youth Environmental Programme for West Africa. We travelled from Nigeria throughout West Africa by road. It was a memorable experience for us.”

According to the First Lady Senator Oluremi Tinubu, young people must be encouraged to contribute to national development through environmental stewardship.

“We have to engage our young people and make sure that they can help build. Everybody has something to contribute to this country. It’s a great country and that’s why we are doing all we can.”

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In his remarks, the FCT Minister, Nyesom Wike revealed that the First Lady personally inspired the transformation of Abuja’s City Gate.

“The First Lady has to be commended for the FCT keying into the Renewed Hope Green Initiative because she has always said we have to change our environment and create opportunities where people can gather and relax.”

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