Economy
Nigerian Economy on Solid Path to Recovery with 5.01% Growth—FG
By Modupe Gbadeyanka
The federal government has expressed satisfaction with the 5.01 per cent growth in the gross domestic product (GDP) for the second quarter of 2021.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this shows that the Nigerian economy was on the solid path to recovery.
Mrs Ahmed, while speaking at an Executive Intelligence Management Course 14 of the National Institute for Security Studies (NISS), Bwari, Abuja, said the administration of Mr Muhammadu Buhari has shown a strong commitment to sustainable development, governance and security despite the nation’s limited revenues.
At the event themed Governance, Security and Sustainable Development in Africa: Nexus, Challenges and Prospects, the Minister said, “The most recent GDP data which reports real growth of 5.01 per cent in the second quarter of 2021 is very encouraging news as it indicates the Nigerian economy is on a solid path to recovery.
“It is important to note that much of the growth was driven by the expansion of the non-oil sector of the economy where most Nigerians are employed.”
She further said due to its importance to every sector, especially the economy, the central government has made funds available to security.
“As an example, about 86 per cent of the 2021 Supplementary Budget was dedicated to the capital and recurrent expenditure needs of the security agencies to supplement the allocations in the 2021 amended budget,” she said.
While speaking on some key governance and security initiatives spearheaded by the Ministry and its agencies, Mrs Ahmed said that through Project Lighthouse, the federal government has been able to aggregate N5.2 trillion worth of debts owed to the government by third parties, of which N49.7 billion of this amount has been recovered.
She also said another initiative is the Treasury Single Account (TSA), a unified structure of government bank accounts that enables consolidation and optimum utilisation of government cash resources.
In addition, she said her ministry came up with the Government Integrated Financial Management Information System (GIFMIS), an IT-based system for budget management and accounting to improve public financial management processes and enhance accountability and transparency across all ministries, departments and agencies (MDAs) of government.
Mrs Ahmed also said in order to modernise tax administration in Nigeria, the Federal Inland Revenue Service (FIRS) introduced TaxPro Max, while the Nigeria Customs Service (NCS) designed the e-Customs Project meant to fully automate administrative processes by introducing innovative measures that eliminate paper-based functions.
The Minister, in addition, said another policy is the Road Infrastructure Tax Credit Scheme (RITCS) launched by President Buhari through Executive Order Number 7 signed on January 25, 2019.
“It is designed to leverage private sector capital, efficiency and expertise to construct, repair and maintain critical road infrastructure in key economic corridors and industrial clusters in Nigeria. The scheme relieves the government of the burden of funding significant outlays for road projects through the annual budget.
“Essentially, the RITCS utilises tax expenditures, by way of tax credits, to finance the construction of critical road and bridge infrastructure through an innovative public-private partnership (PPP) mechanism that incentivises private sector participation. Since inception, Mr President has approved a total of 33 road projects, totalling 1,564.95 km being undertaken in 19 States across the six geo-political zones of the country,” she said.
She also highlighted the Open Government Partnership (OGP), an international multi-stakeholder initiative focused on improving transparency, accountability, citizen participation and government responsiveness to citizens through technology and innovation.
“Since joining the partnership in July 2016, Nigeria has made progress in deepening transparency, accountability and openness in the management of public resources, especially in terms of the budget process,” she said.
Mrs Ahmed further stated that the Office of the Accountant General of the Federation (OAGF) in December 2019 launched the Open Treasury Portal, a platform aimed to enhance the accountability of government by detailing and tracking federal government spending data through the publishing of monthly fiscal accounts, as well as daily treasury and payment reports amongst others by MDAs.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has emphasised the importance of non-interest finance in the economy and the nation’s capital market.
Speaking at the 7th African International Conference on Islamic Finance (AICIF) in Lagos recently, he said non-interest finance drives sustainable economic transformation and enhances market inclusion.
According to him, this was why the stock exchange created a special board for the sub-market segment to attract ethical investors.
“At NGX, our Non-Interest Finance Board represents more than a platform, it embodies our commitment to unlocking ethical capital, diversifying investment opportunities, and driving sustainable development.
“By leveraging innovation and strategic partnerships, we are creating pathways for inclusive growth and positioning Nigeria at the forefront of Islamic finance in Africa,” Mr Chiemeka stated at the event organised by The Metropolitan Skills Limited in collaboration with the Securities and Exchange Commission (SEC).
Business Post reports that Nigeria’s non-interest capital market has recorded significant expansion in recent years, with sovereign Sukuk issuances at over N1.4 trillion for multiple projects nationwide.
It was gathered that the two-day AICIF attracted policymakers, regulators, development partners, and market participants, who explored policy reforms, product innovation, and strategies to unlock liquidity across Africa’s Islamic finance markets.
Also speaking, the chairman of NGX Group Plc, Mr Umaru Kwairanga, said NGX’s Non-Interest Finance Board has become a central platform for expanding access to Sharia-compliant financial instruments and attracting investors seeking transparency, inclusivity, and sustainability.
“Through the Non-Interest Finance Board, NGX is building a dedicated platform for Sukuk, Islamic collective investment schemes, and non-interest exchange-traded funds. Our goal is to broaden market participation while channelling capital towards productive sectors of the economy,” he said.
On his part, the Vice President of Nigeria, Mr Kashim Shettima, represented by the Special Adviser to the President on Economic Matters, Mr Tope Fasua, described Islamic finance as a credible mechanism for fostering equitable prosperity and sustainable development, urging broader adoption across African economies.
By Adedapo Adesanya
The Nigeria Employers’ Consultative Association (NECA) has backed the proposed 15 per cent fuel import tariff introduced by the President Bola Tinubu-led government.
According to NECA Director General, Mr Wale Smatt Oyerinde, the move will enhance local production of the commodity.
“We support the policy of a 15 per cent tariff on imported petroleum products — not on locally produced ones.
“If the 15 per cent tariff is the ‘punishment’ we must bear collectively for our recklessness in allowing our four refineries to collapse, then so be it,” he said when he was interviewed on Channels Television on Friday.
“Even developed nations like the US are introducing protectionist policies to protect their local industries. We don’t have much excuse not to do the same,” the NECA boss said.
Recall that President Tinubu had approved the 15 percent tariff increase in a letter sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, mandating its enforcement.
Critics have faulted the move, arguing it will lead to an increase in the landing cost of the product, with petrol and diesel expected to see further increment.
However, support for the programme has come from many quarters including energy businessman, Mr Femi Otedola, who backed move recently.
The NECA chief also believes the policy is a step in the right direction, adding that a similar actions should be extended to other areas.
“The president gave approval about two weeks ago, and the OPS has done its analysis. We’re also looking beyond petrol and diesel.
“To ramp up production in the manufacturing and real sectors, this kind of policy should extend there too. Why do we import things we can produce locally? It affects forex and other aspects of the economy,” Mr Oyerinde said.
“We’ve said that everything we can produce locally should attract import duties, provided we have made sufficient arrangements for local production to meet our needs. If we have to give businesses a one- or two-year moratorium to integrate backward, then fine, but let’s reduce the tendency to import,” he added.
By Adedapo Adesanya
Shell Nigeria Exploration and Production Company has given US-based Halliburton an integrated drilling contract to work on the oil major’s $2 billion shallow-water HI offshore gas project in Nigeria.
According to reports, the financial terms of the deal, awarded by Shell, were not disclosed.
Halliburton, based in Houston, said it will deploy remote operations and automated technologies for the work.
In October, Shell announced HI, located in Nigeria’s Oil Mining Licence (OML) 144. The UK major operates the HI project with a 40 per cent working interest alongside its local partner, Sunlink Energies and Resources, which owns a 60 per cent stake.
The project, when completed, will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6 per cent), which produces and exports liquefied natural gas (LNG) to global markets.
According to a statement, production is expected to begin before the end of this decade.
At the time of the announcement, Mr Peter Costello, Shell’s Upstream President, said that “This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
The gas will be sent to the delayed Train 7 of the Nigeria Liquefied Natural Gas (NLNG) plant, currently being built by a Saipem-led consortium.
The increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5 per cent per year until 2030.
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