FG to Revive Economy via Issuance of N3.4trn Promissory Notes

Image

By Dipo Olowookere

Promissory notes worth N3.4 trillion would be issued by the federal government under a Promissory Note Programme to settle some inherited local debts, the Minister of Finance, Mrs Zainab Ahmed, has disclosed.

Addressing reporters at the end of the Federal Executive Council (FEC) meeting on Wednesday, the Minister said already, the council has approved the issuance of the notes.

According to her, the promissory note programme will provide stimulus to the economy and unlock investment across a number of sectors currently having liquidity issues.

She added that the issuance will have an immediate positive impact on the non-performing loan ratios of banks which will, in turn, increase the banks capacity to lend and consequently improve the nation’s economy, which is presently in recovery mode after a recession in 2016.

Mrs Ahmed said some of the creditors are pension liabilities of N400 billion, unpaid salaries and third party deductions worth N24.95 billion,; staff claims valued at N270 billion, contractors claims worth N45.36 billion, fuel supply accrued interest and foreign exchange differentials valued at N514.29 billion and part of state governments claims worth N487.85 billion.

Others are Ministry of Health outsourced liabilities worth N9.04 billion, major contractors worth N596.51 billion, Export Expansion Grant (EEG) Scheme valued at N350.12 billion; judgement debt of N112.96 billion; DISCOS debt worth N26.71 billion and GENCOS debt valued at N495.67 billion.

Also at the briefing yesterday, the Minister disclosed that an approval for a $6.8 million loan from the African Development Bank (AfDB) has been granted by FEC,

She explained that the loan would be used to finance inclusive basic service delivery and livelihood empowerment integrated programme for the rebuilding of the North-east.

According to her, there was a previous facility which included coverage of Adamawa, Bauchi, Borno, Gombe, Taraba and Yobe States, and some specific institutions were beneficiaries.

She, however, noted that the programme has suffered because of the insurgency in the area.

“But because of the insurgency, it suffered severely. It could not be carried out because of the activities of insurgents.

“Now, what we are trying to do is to go back to the projects, to this particular institution to make sure we are able to rehabilitate the institution and also undertake a complete skill, training and educational project that will mitigate against the challenges that the institution has had.

“The facility is a concessionary loan. It has an interest rate of one per cent and it is payable over a 30-year period and it has five years moratorium,” she said.

Share
Related Stories
Image
01-March-2024

Lokpobiri Charges New NCDMB Council on Growth of Nigeria’s Energy Sector

By Adedapo Adesanya  The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has charged the newly inaugurated fourth Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) to continue advancing the country’s oil and gas industry. The NCDMB Governing Council is set up under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and draws membership from representatives of select institutions connected with the energy sector. The fourth NCDMB Governing Council would be chaired by Mr Lokpobiri, while the Executive Secretary of NCDMB, Mr Felix Omatsola Ogbe, would serve as the Secretary. Others are the

Image
03-March-2024

Nigeria Pays N1trn Monthly Subsidy to Keep Petrol at N650/Litre

By Aduragbemi Omiyale Despite the federal government claiming it has stopped the payment of subsidies on premium motor spirit (PMS), well-known as petrol, more people are countering this. Recall that a few weeks ago, the International Monetary Fund (IMF) said the government had returned fuel subsidies through the backdoor and kept Nigerians in the dark about this. It then advised the government of President Bola Tinubu, which announced an end to it on May 29, 2023, to completely stop the payment as it was increasing his administration’s fiscal deficit. The global lender, in a report released last month, said the

Image
01-March-2024

Transcorp Power to List Shares on Nigerian Exchange March 4

By Dipo Olowookere Another power generating company will join Geregu Power Plc on the Nigerian Exchange (NGX) Limited, Business Post has gathered. The new firm joining the nation’s flagship stock exchange is Transcorp Power Plc, a company owned by businessman and Chairman of UBA Plc, Mr Tony Elumelu. Information reaching this newspaper is that Transcorp Power is listing its shares on the NGX by introduction on Monday, March 4, 2024. The organisation is taking to the stock market about 7,500,000,000 units of its equities at N240.00 each, increasing the total value of the local equity market by N1.8 trillion. Its

Image
01-March-2024

Foreign Capital Into Nigeria’s Energy Industry Plunges 42.8% to $3.64bn in 2023

By Adedapo Adesanya Foreign capital inflows, which gauges the level of foreign investment into the country, through the Nigerian oil and gas industry in 2023 dropped by 42.8 per cent to $3.64 million from the $6.37 million recorded in 2022. This is contained in the latest data obtained from the Nigeria capital importation report for the fourth quarter of 2023 released recently by the National Bureau of Statistics (NBS). The NBS revealed that total foreign capital inflow into the oil and gas sector in 2023 accounted for 0.09 per cent of total foreign capital inflow into the Nigerian economy in

More Stories
Image
11-December-2018

Stockbrokers Must Not Guarantee Clients Return on Investment–SEC

By Modupe Gbadeyanka Stockbrokers operating in the Nigerian capital market have been told never to offer guaranteed investment product to its clients on investment in securities. This warning was made by the Securities and Exchange Commission (SEC) in its approved amendments to the stock market’s regulatory framework. SEC said where a dealing member violates this rule, a fine not less than N5 million would be imposed on the broker and a further penalty not less than N20,000 daily from when the firm is sanctioned by the Nigerian Stock Exchange (NSE) until the company completes the payment of the fine. In

Image
22-September-2020

Power Bit Crunchers, Zeena Platform Win Lagos Smart Meter Hackathon

By Adedapo Adesanya Power Bit Crunchers and Zeena Platform have emerged victorious in the Hardware and Software categories of the Lagos Smart Meter Hackathon held last Friday. Both winners emerged from the 3-day final of the competition organised by the Lagos State Ministry of Energy & Mineral Resources in collaboration with Eko Innovation Centre. The winners have earned combined prize money of N10 million. In addition, the winners and runners-up in both categories will get working space at the Eko Innovation Centre while all 10 finalists will get mentorship opportunities among other consolation prizes. The Power Bit Crunchers (the hardware

Image
15-May-2017

Disappointing Retail Sales Data May Weigh on Wall Street

By Investors Hub The major US index futures are pointing to a mixed opening on Monday, as stocks appear poised to extend the lacklustre performance seen over the past several sessions. A sharp increase by the price of crude oil may lead to strength among energy stocks after the Saudi Arabian and Russian energy ministers indicated an agreement to freeze oil output would be extended until March of 2018. However, other stocks may come under pressure amid concerns about the impact of the WannaCry ransomware attack, which has reportedly affected 200,000 victims in 150 countries. With traders shrugging off disappointing

Image
31-May-2017

Global Trade: Osinbajo Inaugurates Competitiveness Council

By Modupe Gbadeyanka In a bid to make Nigeria competitive in the global business and commerce, the Acting President, Mr Yemi Osinbajo, inaugurated the National Industrial Policy and Competitiveness Advisory Council. The council was installed in Abuja and the Acting President is its Chairman. Speaking at the inauguration, Mr Osinbajo said the council became necessary because of President Muhammadu Buhari’s determination to position Nigeria as one of the top countries in the business world. He tasked the council to ensure the aims and objectives were achieved, pointing out the success of Nigeria hinges on the team. “If the council cannot

Image
29-December-2019

Staco Insurance Removes Turoti as Chairman, Appoints Aliyu

By Dipo Olowookere Mr Samuel Turoti has been unanimously removed as Chairman of Staco Insurance Plc and replaced by Mr Muhammad Aliyu. the board of directors of the insurer has announced. The decision to remove Mr Turoti as Chairman of the firm was taken at the board meeting held on Wednesday, December 11, 2019 in Lagos, a disclosure from the company disclosed. No reason was given for this action, but according to the notice sent to the Nigerian Stock Exchange (NSE), the former Chairman will remain on the board of the company. “We wish to notify the Nigerian Stock Exchange,

Image
14-April-2017

Sage Makes Case for SMEs in Kenya Ahead of Polls

By Dipo Olowookere Regional Director for Sage in East Africa, Ms Nikki Summers, has pointed out that any party that emerges winner in the general elections in Kenya taking place in August 8 2017 has an opportunity to supercharge job creation and economic growth by adopting policies that help Small & Medium Businesses to thrive. Ms Summers noted that the next government will have a strong framework and foundation to build on, following years of State investment in creating an enabling environment for entrepreneurs and business builders. She said, “With GDP expected to expand by around 6 percent this year,

Image
02-May-2017

10 Honoured at Global Water Award

By Modupe Gbadeyanka No fewer than 10 winners from eight countries were honoured at the Mohammed bin Rashid Al Maktoum Global Award. The prize is worth $1 million and the winners were honoured by HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai. Also present was HH Mansoor bin Mohammed bin Rashid Al Maktoum. The Award was launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to encourage research centres, individuals and innovators from around the world to find innovative and sustainable solutions for

Image
10-November-2020

Akande-Sadipe Distributes Items to Alleviate Poverty

By Dipo Olowookere A top politician in Oyo State, Ms Tolulope Akande-Sadipe, has distributed some items aimed to be used by the inhabitants of the Oluyole Federal Constituency to earn revenue for them. Some of the items distributed by the member of the House of Representatives were tricycles, motorbikes, refrigerators, among others. It is believed that these items would boost the economy of the area and the state at large. The chieftain of the ruling All Progressives Congress (APC) explained that the items were shared to beneficiaries based on the identified need gaps within her constituency in a bid to

Ad
Ad
Recent Stories
Image
04-March-2024

DisCos Must Promptly Respond to Customers’ Complaints—FCCPC

By Aduragbemi Omiyale Electricity distribution companies (DisCos) in the country have been charged to respond to customers’ complaints quickly for better service delivery. This task was given to the energy firms by the Federal Competition and Consumer Protection Commission (FCCPC), which said the companies must design a quick response mechanism to address issues from their customers. Speaking last Saturday at a four-day one-stop-shop for addressing billing, metering, transformer, connection, disconnection, customer service and other electricity consumer issues in Ikeja Electric coverage areas, the acting executive chairman of FCCPC, Mr Adamu Abdullahi, said the highest number of complaints received by the

Image
04-March-2024

Omokungbe Wants Implementation of Initiatives on Women’s Entrepreneurship

By Aduragbemi Omiyale A former Rector of Yaba College of Technology (YabaTech), Lagos, Mr Obafemi Omokungbe, has called for the implementation of programmes and initiatives designed to promote women’s entrepreneurship in Africa. Speaking at the just-concluded 10th anniversary of the African Women Foundation for Nation Building (WINBAFRICA) in Lagos, Mr Omokungbe, a fellow of the Nigerian Society of Engineers (NSE), also appealed to African countries to renew their commitment to women’s empowerment, saying it is a crucial step towards nation-building. According to him, the journey toward women’s empowerment in Africa involves a comprehensive approach that spans various sectors, including education,

Image
04-March-2024

NGX Group Declares 75 Kobo Final Dividend Amid 57.4% Surge in FY’23 Earnings

By Aduragbemi Omiyale A final dividend of N1.5 billion, amounting to 75 Kobo per share has been declared by the board of the Nigerian Exchange (NGX) Group Plc for the 2023 financial year. This brings to N1 the total dividend to be paid by the company after paying 25 Kobo (N495.5 million) as interim dividend at mid-year. In its audited financial statements for the year ended December 31, 2023, the NGX Group said its gross earnings increased by 57.4 per cent to N11.8 billion in FY 2023 from N7.5 billion in FY 2022 because its performances in core revenue and

Image
04-March-2024

Red Line Rail: Labour Party Demands Value for Money

By Aduragbemi Omiyale The Lagos State chapter of the Labour Party has tasked Governor Babajide Sanwo-Olu to ensure the recently commissioned Red Line Rail does not turn out to be another failure due to poor maintenance culture. In a statement by its Publicity Secretary, Mrs Olubunmi Odesanya, the opposition party appealed to the state government to ensure its sustainability. While greeting residents of the metropolis on the project, which was commissioned last Thursday by President Bola Tinubu, the Labour Party faulted the timing of its completion, saying the ruling All Progressives Congress (APC) ought to have put the initiative in

Image
04-March-2024

Access Bank to Give 700,000 MSMEs Access to N50bn Via YouThrive

By Modupe Gbadeyanka An initiative known as YouThrive designed to give entrepreneurs in the micro, small and medium enterprises (MSMEs) access to a N50 billion credit facility has been introduced by Access Bank Plc. The lender disclosed at a media briefing in Lagos that about 700,000 MSMEs would benefit from this programme, which is open to business owners between the ages of 21 and 40 years. YouThrive is a transformative initiative designed by Access Bank to empower, uplift, and accelerate the next generation of MSMEs. According to the Deputy Managing Director of Access Bank, Mr Victor Etuokwu, who addressed journalists

Image
04-March-2024

Peter Obi Laments Nigeria’s Dependence on War-Torn Ukraine for Food

By Adedapo Adesanya The presidential candidate of the Labour Party in the 2023 polls, Mr Peter Obi, has lamented Nigeria’s dependence on Ukraine, a country ravaged by war, for food aid. Mr Obi, in a statement on Monday, expressed dissatisfaction at the current economic realities and recounted times when the Nigerian economy was faring better than that of Ukraine in 2015. “Ukraine cultivates over 60 per cent of its arable land, whereas Nigeria has over 60 per cent uncultivated arable land. “Despite the conflict, Ukraine feeds itself, and exports agricultural products worth over $25 billion which is about the same

Image
04-March-2024

AfDb Injects $134m Into Rice, Maize, Cassava, Soybean Production in Nigeria

By Adedapo Adesanya The African Development Bank (AfDB) is supporting Nigeria in the cultivation of rice, maize, cassava and soybean to boost food production with the provision of $134 million to achieve this. The president of the multilateral lender, Mr Akinwunmi Adesina, said on Saturday after visiting the Centre for Dryland Agriculture (CDA) at Bayero University, Kano, that the bank would support Nigeria to cultivate 300,000 hectares each of rice and maize, 150,000 hectares of cassava and 50,000 hectares of soybeans during the 2024 planting season. The CDA is a World Bank-supported centre established to serve as a regional training

Image
04-March-2024

Salesforce Unveils Conversational AI Assistant Einstein Copilot

By Modupe Gbadeyanka A new customisable, conversational, and generative AI assistant for CRM, Einstein Copilot, has been launched by Salesforce. The system was unveiled at the Mobile World Congress in Barcelona, Spain, and it will use adequate company data to generate useful responses. The Einstein Copilot enables Salesforce customers to generate responses using their private and trusted data, while maintaining strict data governance and without requiring expensive AI model training. As a result, Einstein Copilot can answer questions, summarise content, create new content, interpret complex conversations, and dynamically automate tasks on behalf of a user, all from a single, consistent

Image
04-March-2024

King Charles Knights Airtel Africa Founder Sunil Bharti Mittal

By Modupe Gbadeyanka The founder and chairman of Airtel Africa Plc, Mr Sunil Bharti Mittal, has been knighted by King Charles III in recognition of his contribution towards promoting India-United Kingdom (UK) business relations. The businessman was awarded Honorary Knighthood, the Knight Commander of the Most Excellent Order of the British Empire (KBE), for contributions towards advancing India-UK business relations, including his instrumental role in the listing of Airtel Africa on the London Stock Exchange in 2019, where it is a constituent of the FTSE100 Index. He also led the revival of OneWeb (now Eutelsat), leading a consortium with the

Image
04-March-2024

NASD OTC Exchange Records First Weekly Decline in Week 9

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange, for the first time in the 2024 trading year, declined in Week 9 by 3.92 per cent, shrinking the value of investors’ portfolio by N27 billion, as the market capitalisation went down to N1,548 trillion from N1.611 trillion in Week 8. Equally, the NASD Unlisted Security Index (NSI) depreciated by 47.17 points to wrap the week at 1,141.61 points compared with the 1,188.78 points recorded in the previous week. In the week, there was a 65.1 per cent decrease in the total value of securities traded by investors to N620 million