Economy
NESG Tasks FG to Initiate Critical Reforms to Accelerate Growth
By Adedapo Adesanya
The Nigeria Economic Summit Group (NESG) has charged the federal government to achieve a paradigm shift in governance and policy design to sustain and accelerate economic growth in 2022.
The think-tank group made the suggestion in its Macroeconomic Outlook for 2022, hammering that the year presents opportunities to initiate critical reforms to achieve the shift.
Mr Laoye Jaiyeola, Chief Executive Officer of the NESG, warned that failure by the central government to initiate critical reforms could exacerbate challenges that the country encountered in 2021.
“In the NESG Macroeconomic Outlook for 2022, we highlight the need for reforms that will sustain the recovery of output and ensure improved social inclusion in Nigeria.
“We believe that the role of government is to ensure that reforms translate to a friendly business environment and better welfare conditions for households,” he said.
He also said Nigeria was rapidly consolidating its recovery from the effect of the COVID-19 pandemic, noting, however, that the recovery had not been all-inclusive.
“Pre-COVID-19 narrative of poor inclusiveness and macroeconomic instability still persists.
“In spite of a GDP growth of 3.2 per cent in the first three quarters of 2021, data from the National Bureau of Statistics show that average prices of goods and services were high.
“Trade balance remained in deficit and foreign investment inflow was constrained.
“The World Bank estimated that an additional eight million Nigerians fell into poverty between 2020 and 2021 due to lower purchasing power,” he added.
The NESG boss also said although Nigeria had enormous potential, job creation across sectors was lagging, resulting in an increase in unemployed individuals.
“While there is considerable improvement in some areas, such as the mobilisation of non-oil revenue in the last few years, one thing is clear: Nigeria cannot afford to continue with its business-as-usual approach in policymaking and execution,” he stressed.
He added that widespread insecurity across the country emphasised the need for policy formulation and implementation that impacted all strata of society.
“The heightened insecurity and social vices in several parts of the country is proof that when some segments of the population are left behind, it will offset the few gains made prior to COVID-19.
“It will also deprive the country of much-needed investments that would ensure sustainable growth and development,” he noted.
According to Mr Jaiyeola, the challenges associated with insecurity, rising prices, unemployment, and lower investments intensified the need for reforms that will lead the country to substantial economic progress and improved social inclusion.
He added that such reforms would ensure that businesses and citizens constituted the core of the government’s policies and actions.
He specifically called for deregulation of the country’s oil sector to boost investments and also save huge government revenue expended on fuel importation.
“Certainly, the challenges facing the country are daunting. Still, the year 2022 presents a unique opportunity for Nigeria to initiate tough economic reforms that will propel sustainable economic growth and inclusive development.
“Long-standing issues of deregulation of the downstream sector, foreign exchange scarcity and lower investments in key sectors must be given the utmost attention in 2022.
“The deregulation of the downstream oil and gas sector, for example, is needed at this critical time when massive investments are required to fix deteriorating refineries.
“This will address the predicament of huge importation of refined petroleum products that deprive the country of the foreign exchange required to meet other important obligations,” he said.
Mr Jaiyeola commended the Federal Government for launching the National Development Plan (NDP) 2021-2025 but warned that implementation of the plan would be crucial in determining its success.
“The NDP sets targets, priority areas, and action steps to be implemented in the five years.
“Success or failure of the plan will largely hinge on the level of implementation and coordination among government agencies, domestication of the plan by the state governments, and private sector’s commitment.
“More importantly, the government is expected to be a key driving force in creating a business-friendly environment, ensuring macroeconomic stability and mobilising investments across board.
“With just over a year left in office, the current administration must intensify the pace of reforms.
“This is especially given the impact of the twin challenges of poverty and unemployment on security and social cohesion.
“Economic and social reforms that will create jobs and improve the lives of Nigerians should be non-negotiable in 2022,” the NSG chief stressed.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange made a marginal 0.01 per cent rise on Tuesday, April 29, pushing the Unlisted Security Index (NSI) up by 0.29 points to 3,282.42 points from the previous session’s 3,282.42 points.
Also, the market capitalisation of the trading platform increased slightly by N170 million to remain relatively unchanged at N1.922 trillion.
At the trading session, the bourse ended with two price gainers led by Geo-Fluids Plc, which chalked up 15 Kobo to sell at N2.13 per unit compared with the previous day’s N1.98 per unit, and Food Concepts Plc grew by 13 Kobo to settle at N1.29 per share compared with the N1.17 per share it was traded a day earlier.
However, Afriland Properties Plc lost N1.71 to close at N16.07 per unit versus the preceding day’s price of N17.78 per unit, and FrieslandCampina Wamco Nigeria Plc crumbled by 65 Kobo to finish at N37.50 per share, in contrast to Monday’s closing value of N38.15 per share.
The volume of securities traded in the session went up by 223.6 per cent to 2.2 million units from the 692,885 units transacted in the previous trading day, the value of transactions jumped by 70.8 per cent to N38.6 million from N22.6 million, while the number of deals fell by 18.4 per cent to 31 deals from 38 deals.
Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, followed by Okitipupa Plc with 153.6 million units sold for N4.9 billion, and Industrial and General Insurance (IGI) Plc with a turnover of 71.2 million units valued at N24.2 million.
The most traded stock by value on a year-to-date basis was Okitipupa Plc with a turnover of 153.6 million worth N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with the sale of 14.7 million units for N566.9 million, and Impresit Bakolori Plc 533.9 million units valued at N520.9 million.
By Adedapo Adesanya
The Naira marginally appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, April 11.
Data obtained by Business Post from the Central Bank of Nigeria (CBN) showed that the exchange rate closed at N1,601.04/$1 during the trading session compared with the previous day’s value of N1,601.38/$1, indicating that the Nigerian currency improved its value by 0.08 per cent or 34 Kobo against the greenback.
Also, against the Pound Sterling, the local currency appreciated yesterday by N5.57 to sell for N2,145.85/£1 versus Monday’s closing price of N2,186.65/£1 but against the Euro, it lost N5.00 to trade at N1,823.82/€1, in contrast to the N1,818.82/€1 it was exchanged a day earlier.
At the parallel market, the Nigerian Naira maintained stability against the US Dollar on Tuesday, remaining unchanged at N1,610/$1.
Meanwhile, the cryptocurrency market turned bearish yesterday after a wave of economic data suggests the US economic activity is slowing down due to the tariffs policies unleashed by the administration of President Donald Trump.
Consumer confidence, according to a survey by the Conference Board, is currently at its lowest level since May 2020, a period when the world was on lockdown.
However, there are evidence that negotiation of trade deals with other countries, could offer support.
Dogecoin (DOGE) depleted by 3.3 per cent to sell at $0.1740, Ripple (XRP) lost 2.6 per cent to quote at $2.22, Cardano slumped by 2.4 per cent to trade at $0.6955, Litecoin (LTC) went down by 1.9 per cent to finish at $84.89, and Solana (SOL) recorded a 1.4 per cent depreciation to close at $146.55.
Further, Ethereum (ETH) declined by 1.3 per cent to end at $1,779.01, Binance Coin (BNB) crumbled by 1.2 per cent to settle at $603.30, and Bitcoin (BTC) slipped by 0.2 per cent to trade at $94,682.75, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
An additional N11.49 billion has been recovered by the House of Representatives Committee on Public Accounts from some oil companies operating in Nigeria.
A statement signed by the spokesman of the lower chamber of the National Assembly, Mr Akin Rotimi, said the total amount recovered from these energy firms is now N61.5 billion.
He stated that the recovered funds were from oil and gas companies with outstanding obligations to the federal government.
It was revealed that $182,057.44 (N291.29 million) was recovered from Platform Petroleum Limited, $730,889.37 (N1.17 billion) was from Midwestern Oil and Gas, N1.58 billion from Seplat Energy, $3.9 million (N6.1 billion) from Aradel Holdings, $500,000 (N775 million)
From Network Exploration & Production, and $1 million (N1.55 billion) from Shoreline Resources Limited.
According to the statement, the committee’s intensified efforts are anchored on findings from the Auditor-General’s reports and data obtained from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
These have informed sustained engagements with oil firms to ensure accountability for unremitted funds and outstanding liabilities.
The legislative arm of government also warned some organisations ignoring invitations to desist from such.
It said these defaulting firms collectively owe over $384 million and N325.7 million to the federal government, listing them as Neconde Energy Ltd – $110.5 million and N325.7 million, Heirs Holdings – $137.7 million, AITEO Ltd – $34.8 million, Continental Oil & Gas Ltd – $31 million, General Hydrocarbon – $28.4 million, Energia Ltd – $19.5 million, Waltersmith OML 16 – $8.7 million, Bilton – $5 million, Pillar Oil Ltd – $4.6 million, Millennium Oil and Gas Ltd – $2.067 million, Conoil Producing Ltd – $1.1 million, and Frontier OML 13 – $952,216.51.
“This Committee will not tolerate attempts by corporate entities to evade their responsibility to the Nigerian people.
“These companies are withholding billions of Naira owed to the federal government, and we will not allow them to disregard the authority of parliament.
“If these companies believe they are too big to be held accountable, they must understand that their licenses are at risk.
“We are prepared to recommend immediate revocation for any company that shows contempt for this Committee and the laws of the nation,” the chairman of the panel, Mr Bamidele Salam, fumed.
“No company is above the law. The funds being withheld are critical to the country’s growth and must not be hoarded while Nigeria suffers. Every company operating in Nigeria must settle its obligations promptly, as required by law,” he declared.
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