Economy
FG Reveals 10-Point Roadmap To Save Economy
**To Return Toll Gates
By Modupe Gbadeyanka
Federal Government has revealed steps it hopes to take to salvage the country’s economy, which has been battling with recession for months.
Minister of Finance, Mrs Kemi Adeosun, who spoke at an event in Lagos, disclosed that the FG would focus on 10 points to help Nigeria out of the economic downturn.
Mrs Adeosun, who represented the Vice President, Mr Yemi Osinbajo, at the annual dinner of the Lagos Business School, noted that the 10-point roadmap would address the major problems dragging the economy backward.
According to her, the Federal Government’s Fiscal Roadmap will tackle obstructions to growth that will drive productivity, generate jobs and broaden wealth creating opportunities to achieve inclusive growth.
She said further that much attention would be focused on infrastructure deficit to unlock productivity, improve business competitiveness and create employment.
“Government would actively partner with the private sector to achieve this by use of a number of new funding platforms. These include the Road Trust Fund, which will develop potentially ‘tollable’ roads, and the Family Homes Fund which is an ongoing PPP initiative for funding of affordable housing,” she said at the event.
She added that the tax system would be reviewed to ensure companies get tax relief for investment in roads on a collective basis, subject to approval by FIRS and the Ministry of Works.
According to the Minister, only two firms, Dangote and Lafarge have only been able to get such.
Mrs Adeosun listed the government’s 10-point roadmap as follows:
The fiscal roadmap is detailed in the attached 10-point plan:
Fiscal Roadmap 2017
Fiscal Policy Initiative
Expected Impact
- Recognise inherited debt profile after a robust audit process:
- Introduce promissory note programme to finance verified liabilities
- Issue debt certificates to contractors, Ministries, Departments & Agencies (MDAs), and State Governments
- Improve cash flow of businesses
- Improve Banks’ Non-Performing Loans (NPLs)
- Free up Banks’ balance sheet for lending to private sector
- Improve government’s business interaction with the private sector
- Mobilise private capital to complement Government spending on infrastructure:
- Roads Trust Fund
- Family Homes Fund
- Extend infrastructure tax relief to a collective model to attract clusters of corporate entities
- Expand the provision of infrastructure
- Drive growth of non-oil sector.
- Drive economic growth
- Strengthen fiscal/monetary handshake:
- Replace administrative measures on list of 41-items with fiscal measures to reduce demand pressure in parallel market
- Encourage domestic food production through specific incentives e.g. accelerated depreciation on food manufacturing equipment and Zero (0%) duty on green houses
- Planned revitalisation of refineries
- Increase Diaspora remittances via participation in the buyer support scheme for the Family Homes Fund
- Reduce demand for US Dollars
- Increase supply of US Dollars
- Incentivise exports:
- Restructure the Export Expansion Grant (EEG) to a tax credit system
- Rationalise tariffs and waivers in key export sectors
- Encourage/incentivise non-oil exports
- Drive import substitution
- Encourage investment in specific sectors through fiscal incentives:
- Accelerated depreciation on equipment in strategic sectors e.g. food processing, mining and power
- Rationalise tariffs and waivers in priority sectors
- Drive investment in strategic sectors
- Continue expansion of fiscal space through revenue enhancement and cost consolidation:
- Customs Single Window (being implemented through a Private Public Partnership (PPP) scheme)
- Template for non-allowable expenses for government agencies.
- Overhead cost control by the Efficiency Unit
- Continuous risk based audit by the Presidential Initiative on Continuous Audit
- Revenue enhancement
- Cost containment
- Improve fiscal discipline at Sub-National level:
- Extension of efficiency unit at Sub-National level
- Fast track municipal bond issues to deepen the bond market
- Conversion to International Public Sector Accounting Standards by all State Governments.
- Improved fiscal position at Sub-National level
- Enable and accelerate Recoveries process:
- Whistle-blower scheme
- Centralised database on recovered assets
- Asset tracing
- Professional management of recovered assets
- Increased efficiency of Recoveries process
- Increased budgetary funding availability from Recoveries
- Rebalance debt portfolio to extend maturity and optimise debt service cost:
- Rebalance public debt portfolio with increased external borrowing (60:40 target)
- Extend maturity profile of public debt portfolio
- Deploy long-term debt instruments including Infrastructure and Retail Bonds
- Maximise use of concessionary loans
- Rebalanced debt profile withimproved debt service to revenue ratio
- Catalyse Micro, Small and Medium Enterprise (MSME) growth through specific measures to improve capacity and access to finance:
- Development Bank of Nigeria (US$1.3bn)
- Increase share of business awarded to MSMEs from Government contracts
- Tax harmonisation and tax incentives
- Accelerated depreciation
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its gains by 0.91 per cent on Wednesday, June 3, spurred by three price gainers led by FrieslandCampina Wamco Nigeria Plc, which rose by N13.90 to sell N210.41 per share versus the previous day’s N196.51 per share. MRS Oil appreciated by N10 to N190.00 per unit from N180.00 per unit, and Food Concepts Plc added 5 Kobo to sell at N3.00 per share versus N2.95 per share.
As a result, the market capitalisation increased by N23.91 billion to N2.660 trillion from N2.636 trillion, and the NASD Unlisted Security Index (NSI) gained 39.97 points to finish at 4,446.27 points, in contrast to Tuesday’s 4,406.30 points.
The NASD exchange witnessed three price losers at midweek, led by Nipco Plc, which shrank by N21.30 to close at N325.97 per unit compared with the previous session’s N347.27 per unit, Nitrox Industrial Gases Plc went down by N1.20 to quote at N24.30 per share versus the preceding session’s N25.50 per share, and Central Securities Clearing System (CSCS) Plc weakened to by 69 Kobo to N75.41 per unit from N76.10 per unit.
The volume of trades yesterday significantly improved by 71.5 per cent to 527,221 units from Tuesday’s 307,363 units, as the value of transactions soared by 49.9 per cent to N64.2 million from the preceding session’s N49.9 million, and the number of deals surged by 9.5 per cent to 46 deals from 42 deals.
When trading activities ended for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 64.6 million units exchanged for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Adedapo Adesanya
The positive run of the Naira against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) continued on Wednesday, June 3, with the former chalking up N3.79 or 0.28 per cent against the latter, closing at N1,357.26, in contrast to the preceding session’s N1,361.05/$1.
Similarly, the Nigerian currency gained N10.52 against the Pound Sterling in the official market during the session to close at N1,822.67/£1 compared with the previous rate of N1,833.19/£1, and appreciated against the Euro by N9.56 to N1,574.83/€1 from N1,584.39/€1.
Further, at the black market, the Naira improved its value against the greenback at midweek by N5 to trade at N1,375/$1 compared with the N1,380/$1 it was traded a day earlier, and at the GTBank FX counter, it gained N6 to sell for N1,372/$1 versus N1,378/$1.
The boost came as the country’s external reserves continued to gain momentum. A look at the updated data from the Central Bank of Nigeria (CBN) showed that foreign reserves continue to increase with two consecutive inflows in June 2026, settling at $49.876 billion as of Tuesday.
Foreign portfolio investors, exporters and non-bank corporates continue to keep the supply side strong, with the less aggressive FX interventions by the CBN at the official window in recent times helping to ease worries about capital flight.
The apex bank reported that interbank FX turnover declined to $133.731 million across 136 deals, from $169.822 million the previous day.
Meanwhile, the cryptocurrency market remained bearish due to sell-offs triggered by geopolitical uncertainties and the US stock market rally.
Cardano (ADA) dipped by 5.5 per cent to $0.2046, Binance Coin (BNB) slumped by 4.8 per cent to $627.56, Solana (SOL) shrank by 3.9 per cent to $72.99, Ethereum (ETH) depreciated by 2.9 per cent to $1,844.53, and Bitcoin (BTC) slipped by 2.7 per cent to $65,675.87.
Further, Dogecoin (DOGE) depleted by 1.4 per cent to $0.0928, Ripple (XRP) declined by 0.7 per cent to $1.21, and TRON (TRX) lost 0.4 per cent to sell at $0.3336, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) gained 0.01 each to settle at $0.9986 and $0.9997, respectively.
By Dipo Olowookere
Nigeria’s stock market further depleted by 1.44 per cent on Wednesday following panic sell-offs by investors, who are cutting down their exposure to local equities.
Business Post observed that profit-taking dominated Customs Street at midweek, with all the key sectors of the Nigerian Exchange (NGX) Limited closing in red.
The insurance space shed 2.76 per cent, the industrial goods index lost 1.55 per cent, the banking counter declined by 1.53 per cent, the consumer goods segment shrank by 0.28 per cent, and the energy sector weakened by 0.05 per cent.
As a result, the All-Share Index (ASI) contracted by 3,554.05 points to 243,132.61 points from 246,686.66 points, and the market capitalisation moderated by N2.279 trillion to N155.940 trillion from N158.219 trillion.
Lafarge Africa led the losers’ chart yesterday after it gave up 9.97 per cent to trade at N307.90, Zichis lost 9.82 per cent to close at N29.20, Learn Africa depreciated by 9.80 per cent to N11.50, John Holt crashed by 9.80 per cent to N13.80, and Consolidated Hallmark dipped by 8.84 per cent to N6.19.
On the flip side, Abbey Mortgage Bank topped the gainers’ log after it grew by 9.93 per cent to N7.75, International Energy Insurance appreciated by 9.89 per cent to N6.00, Tripple G gained 9.80 per cent to sell for N4.37, Universal Insurance expanded by 8.91 per cent to N1.10, and Royal Exchange improved by 7.14 per cent to N1.50.
A total of 17 stocks gained weight yesterday, while 43 stocks lost weight, indicating a negative market breadth index and weak investor sentiment. This has been the mood of the market since the beginning of this week.
Market participants transacted 923.0 million shares worth N42.3 billion in 69,332 deals on Wednesday, in contrast to the 718.8 million shares valued at N29.3 billion traded in 71,683 deals on Tuesday, representing a drop in the number of deals by 3.28 per cent, and a rise in the trading volume and value by 28.41 per cent and 44.37 per cent, respectively.
Sterling Holdings led the activity chart with 264.6 million units valued at N2.1 billion, Access Holdings traded 76.7 million units worth N1.8 billion, Linkage Assurance exchanged 55.1 million units for N99.2 million, VFD Group sold 35.5 million units worth N378.8 million, and Ellah Lakes transacted 33.1 million units valued at N334.3 million.
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