The Central Bank of Nigeria, CBN, has stated excess liquidity permeated the banking system reasonably well in 2015.
In its half year activity report in Financial Markets Department it made available on its website at the weekend, the CBN stated liquidity was influenced by fiscal injections through Statutory Revenue Allocations (SRA), Value Added Tax (VAT), budget augmentation, Subsidy Reinvestment and Empowerment Programme (Sure-P), amongst others.
Other forms of injections included payments for Joint Venture Cash (JVC) calls to oil partners and the repayment of matured government securities to investors.
To moderate the liquidity overhang, however, CBN said it intervened through Open Market Operations at various intervals.
The report showed that 47 auctions were conducted using CBN Bills with tenors ranging from 91 to 301 days, which resulted in the aggregate mop-up of N4, 261.72 billion compared to N4, 484.93 billion in the first half of 2014.
It explained that withdrawal of liquidity from the system were through the NNPC transfer of funds to the Federation Account at the CBN for disbursement to the federating units, sale of foreign exchange and Federal Government of Nigerian (FGN) debt instruments to the public.
Other instruments used for liquidity management included the cash reserve ratio (CRR) which had 20 per cent for private sector deposits and 75.00 per cent on public sector deposits till May 19, 2015 when the Monetary Policy Committee (MPC) harmonised it at 31.00 per cent for both sector deposits.
In addition, the maintenance period was adjusted to weekly from bi-weekly. The MPR remained at 13.00 per cent with, the symmetric corridor of -/+ 200 basis points.
To aid short-term liquidity management by the deposit money banks.
The N331 billion inflows from payment of matured treasury bills halted the huge outflows experienced by the interbank money market, which led to scarcity of funds.
Findings revealed that the amount of idle cash in the market dropped from N633 billion on Monday to zero at the end of business on Tuesday as banks diverted the idle cash to participate in foreign exchange sales by the Central bank of Nigeria (CBN).
The ensuing scarcity of funds caused cost of funds to rise sharply from Tuesday to Wednesday. Data from Financial Market Dealers Quote (FMDQ) show that cost of unsecured lending rose from 0.67 percent on Monday to 7.17 percent on Tuesday and further to 8.61 percent on Wednesday. Similarly, cost of Over-night lending rose from 1.08 percent on Monday to 8.08 percent on Tuesday and further to 9.25 percent on Wednesday.
This trend was however reversed on Thursday when the market experienced inflow of N331 billion from payment of matured treasury bills. As a result, amount of idle cash in the market rose and closed the week at N462 billion. Consequently, cost of unsecured lending and Over-night lending fell sharply on Thursday and closed the week at 0.71 percent and 1.08 percent respectively.
Reflecting the improved liquidity (cash) in the market, treasury bills auction held on Friday recorded 400 percent oversubscription. Though the CBN offered N50 billion worth of secondary market bills (OMO), investors however demanded for N233.428 billion at interest rates (bid rates) ranging from 7.5 percent to 10 percent. The CBN accommodated N131.523 billion stopping at 7.6 percent.
President/Chief Executive of Dangote Group , Aliko Dangote has said the conglomerate is focusing on generating foreign exchange earnings over the next five years when all its projects are completed.
The business tycoon said this in a Pre-Convocation lecture of the Ahmadu Bello University, Zaria, at the weekend, adding that the Group will be the country’s largest forex earners after the Nigerian National Petroleum Corporation (NNPC).
Dangote listed the 650, 000 barrels per day refinery and a separate 1.2 petrochemical complex that will be completed in 2018 as one of the projects that will generate at least $6bn foreign exchange for the nation.
“In total, we are investing over $19 billion across our various businesses as we consolidate in some, grow others and venture into new fields and enterprises,” he said.
Dangote Group, he said, is furthering a new ground by investing in two 554Km, three billion square cubic feet (scf) gas offshore pipeline project.
The project which is the first indigenous owned undersea gas pipeline that will supply gas to industries and power plants, would be run from Bonny through the various gas fields and would generate 12,000MW of power.
According to him, some other investments, according to him, include a $5bn joint venture agreement with the Black Rhino Group to develop energy infrastructure in Africa.
The Nigerian Electricity Regulatory Commission, NERC, said on Monday, February 1, that the new electricity tariff regime (MYTO 2015) has the mechanism to meter all consumers within one year.
The Acting Head of the commission, Anthony Akah, made this known in an interview with the News Agency of Nigeria (NAN) in Abuja.
Akah said:“The new tariff, besides eliminating fixed charge, has a robust mechanism to ensure that DISCOs (Distribution Companies) fully meter their consumers and eliminate ‘crazy’ billing within one year.’’
He said that the new tariff regime if allowed to work, was a realistic tariff.
Akah said the new tariff would protect consumers’ interests and allow more efficient billing system.
He said that the tariff would also fast-track the development of the nation’s economy.
Akah added that the tariff would encourage massive metering of customers and would also reduce losses suffered by power investors.
He said that the removal of fixed charge under the new tariff was in response to electricity consumers’ complaints.
Akah said that no DISCO would connect new customers without first providing them with meters.
The Federal Government has expressed it’s readiness to fund 2016 budget with proceeds from the non-oil sector of the economy.
The Minister of Budget and National Planning,Udoma Udo Udoma, said: “As we all know , these are tough times for Nigeria. It is challenging times but this can also be an opportunity to move away from dependence on oil.”
“I believe we can get there, we must look at internally generated revenue and this is what we have started doing. The 2016 budget is in fact not funded with crude oil receipt.”
The Minister in his remark during the visit of members of the Senate Committee on Planning to his office.
He said in de-emphasising proceeds from oil, the present government only set a target of N820 billion as revenue from the oil sector while it hopes to rake in N1.45 trillion from the non-oil sector and N1.51 trillion expected as independent revenue from government agencies.
Udoma, who expressed Federal Government’s readiness to make a shift from the old ways of sourcing funds for government stated that ministers of various ministries have been mandated to look inward to generate funds through public-private partnership to fund some of their infrastructural projects.
Earlier in her address, Zainab Ahmed, the Minister of State for Budget and National Planning spoke on the Ministry’s plans to update Nigeria’s Vision 2020 agenda with a view to taking account of its development priorities.
She urged members of the committee to help with the quick passage of Bill on Development Planning and Project Continuity submitted to the National Assembly two years ago as well as the National Council on Management Development (NCMD) Amendment Act which has passed second reading.
Chairman of the Senate Committee on Planning and former governor of Kano State, Rabiu Musa Kwankwaso, expressed the willingness of the Senate to collaborate with the ministry to fast track the passage of the necessary bills to enhance the growth of the Ministry.
Trading activities on the floor of the Nigerian Stock Exchange, NSE, traveled south on Monday, February 1, opening the new month on a negative note.
The NSE all share index also dipped by 89.39 points, representing 0.37% per cent loss from 23,916.15 basic points to close at 23,826.76 points compared to 1.3 per cent increase on Friday, January 29.
The market capitalization at the end of the trading dropped from N8.225 trillion to N8.194 trillion.
Market breadth closed negative as Seplat Petroleum Development Company Plc led 19 gainers against 25 losers, topped by Forte Oil Plc at the end of the trading session, which was an unimproved performance when compared with the previous outlook.
Market turnover closes positive as volume soared by 8.70 per cent against 11.6 per cent decline recorded in the previous session.
A statistical report obtained from the National Bureau of Statistics (NBS) has shown that 13 power Generation companies (Gencos) have raked in about N248billion profit between 2010 and 2014, after spending N153billion on production.
The report released over the weekend captured data from 13 Gencos that had operated during the period. They generated about 5.2billion megawatts hour (mwh), showing an estimated average of 3,500megawatts (mw) generation through the years.
The 13 Gencos comprising 12 gas-fired plants and one hydropower station (Kainji/Jebba Power) made a turnover of N265.074billion in the period that spanned four years before the privatisation and one year after.
While they expended about N153.203billion as production cost, excluding labour and other miscellaneous debts, the estimated profit made was put at N248.504billion.
The only loss incurred was from the Alaoji Genco, recording a loss of about N8.412bn due to shortage of gas as only some units were working throughout the year out of the 504mw capacity. It got a turnover of just N297.595million after it generated 32,609mhw electricity for the eight-month period.
The plant was one of the 10 small and medium gas-fired plants under the National Integrated Power Projects (NIPPs) which started operation in April 2015.
Showing the breakdown of the spending and earning, statistics indicated that Geregu I Power station, operated since 2010, had a turnover of N39.904bn, removing a production cost (without labour) of N14.658bn, the plant earned N25.246bn by 2014. It is expected to churn out 159mw daily this year.
Afam power operated within the same period and recorded a turnover of N10.685bn, less production cost of N2.864bn, it made a profit of N7.821bn.
The AES power, on its part, got a profit of N27.073bn after it has removed N19.057bn for production cost. It generated 2.041million mhw between 2010 and 2014, operation between 2010 and 2014 (in five years).
NAOS JV Independent power Plant (Agip IPP) within the same period generated 5billion mhw at a meagre cost of N256.060m. Its profit for the huge generation was N128.349million.
Another old plant, Omotosho Electric Power, spent N6.436bn on production and gained N5.834bn. It is expected to generated 254mw all through 2016.
The Olorunsogo Power started operation in January 2011. It spent N27.774bn and raked in N5.848bn as profit by 2014. It will be producing 231mw daily this year.
Ogorode Genco, one of the 10 power stations in the National Integrated Power Projects (NIPP) started operation in September 2011. It gained N9.203bn and paid N17.468bn for production.
The other NIPP plant, Omotosho Genco, started operation in May 2012. It paid N19.174bn to produce 3,344million mhw and gained N11.297bn. It is estimated to produce 226mw electricity daily in 2016.
The third NIPP, Geregu II Genco, started in May 2013. After spending N12.023bn on production, it gained N7.106bn. It should generate 213mw daily this year, which is about half of its installed capacity.
The Benin GENCO (NIPP) started operation in May 2013 and generated 1.983millon megawatts hour (mwh). While it got N9.335bn profit, it spent N8.885bn on production. Its present estimated capacity is 279mw daily output.
The fifth and youngest NIPP is the Alaoji Genco in Abia State which started operation in April 2015. It generated 32,609 mwh after spending N8.710bn on production. It recorded a loss of N8.412bn and it was estimated to produce 130mw daily this year, far lower than its 504mw installed capacity.
The Nigerian Electricity Supply Corporation (Nesco) Ltd was in operation since 2010 and generated 143.780million mwh by 2014. While it spend N1.607bn on production, it gained N1.554bn.
The only hydropower station captured in the report was the Kainji/Jebba station. The data was from the fourth quarter of 2013 when it privatised (under concession). By 2014, it has generated 3.326millon mhw of which N24.129bn was spent to produce. It however recorded N9.838bn profit and expected to contribute 367mw daily to the national grid in 2016.
The Senate, on Monday, February 1, queried the N10bn hike in the personnel cost of the parastatals under the federal ministry of education as proposed in the 2016 budget estimate.
The minister of state for education, Anthony Onwuka, who spoke during budget defence at the Senate, said N98bn was proposed for the personnel cost of all parastatals under the ministry of education this year as against N88.1bn budgeted last year.
A member of the committee, Olusola Adeyeye (APC, Osun Central) expressed shock over the increase saying “whereas the main ministry, colleges of education, polytechnics, and universities have their personnel cost slashed, that of the parastatals has been increased.”
In her response, the Permanent Secretary of the ministry, Folasade Yemi-Esan said the personnel cost was collated based on the submission of the institutions.
Trading in equities closed in the red on the Nigerian Stock Exchange, NSE, on Monday, February 1, yesterday, bring to a screeching halt the bull trend that trailed trading on Friday, January 29.
Specifically, the All Share Index slid 0.3 per cent to close at 23,826.76 points, compared to the decline of 1.34 per cent recorded on Friday to close at 23,916.15 points.
Market capitalisation shed N31 billion to close at N8.19 trillion as against the decrease of N30 billion recorded on Friday to close at N8.22 trillion. An analysis of the price movement table indicated that Forte Oil Plc led the losers’ pack with a loss of N14.89 to close at N282.94 per share.
Seven Up Plc trailed with N9.80 to close at N186.20 per share, while Total Nigeria Plc shed N7.50 to close at N142.50 per share. Guinness Nigeria Plc declined N4.30 to close at N111.20, while Conoil Plc dipped N2.40 to close at N22.34 per share. Conversely, Seplat Plc led the gainers’ table, increasing by N9.71 to close at N203.96 per share. Zenith Bank Plc added N1.08 to close at N13.69 per share, while International Breweries Plc increased by 80 kobo to close at N16.80 per share.
Cement Company of Northern Nigeria Plc added 48 kobo to close at N10.08 per share, while UAC-Property Plc was up by 26 kobo to close at N5.46 per share. Further analysis showed that United Bank for Africa Plc (UBA) recorded the highest volume, exchanging 96.5-4 million shares worth N278.26 million.
Dangote Cement Plc followed with 30.29 million shares valued at N3.63 million, while FBN Holdings sold 23.15 million shares worth N93.20 million. Zenith Bank Plc exchanged 21.97 million shares valued at N297.22 million, while FCMB Plc sold 18.82 million shares worth N18.46 million. In all, investors spent N5.95 billion on 262.36 units of shares in 3,887 deals
The incessant attacks on pipelines reportedly carried out by Niger Delta militants has cut crude oil export of the Nigeria Agip Oil Company, NAOC, by 16,000 barrels.
The oil company’s pipelines which cut across Orukari, Golubokiri and Kpongbokiri communities in Brass Local Government Area, Bayelsa State, were attacked on Thursday last week.
The explosion occurred barely two weeks after an earlier attack on pipelines in Delta State forced the Warri and Port Harcourt refineries to shut down.
An Agip Spokesman who confirmed the explosion yesterday said the oil firm was working to repair the damaged sections and resume production.
The company said security agencies were still investigating the cause of the explosion.
Agip said: “The Eni production impacted by the incident was 16,000 barrel oil equivalent daily, (boed) and as at Monday morning, all the activities aimed at restoring production have been activated.”
Production data obtained from Eni’s website indicated that NAOC exports some 40,000 barrels of oil equivalent from the oil firm’s crude export terminal before the explosion cut production by 16,000 barrels.
Sources at National Oil Spills Detection and Response Agency (NOSDRA) said the blast was an act of sabotage which fell within the scope of security agencies.
Acting Director-General of the agency, Haruna Baba Jauro, who briefed the Senate Committee on Marine Transport in Lagos on Monday, February 1, said the money was remitted by the agency between 2011 and 2015.
In the breakdown of the remittances, the agncy explained that N450million was remitted in 2011 while N6, 441, 383, 583, 587 was paid in 2012. In 2013, N13, 833,431,883 was remitted while N9,732,349,682 and N11,770,978,562 were remitted in 2014 and 2015 respectively.
Jauo said all the remittances added up to a total of N42, 278,143,714.99.
He added that $39,025,017 and N4,985,000,000 operating surplus for last year were also remitted to the Federation Account.
The statutory revenue disbursement of the agency, according to Jauro, include 25 per cent maritime fund and five per cent development for Maritime Academy, Oron.
He also told the committee that over N51billion Cabotage Fund domiciled with NIMASA to promote the development of indigenous commercial shipping capacity in international and coastal trade is safe.
About 30,000 of the 200,000 bureaux de change, BDC, workers would lose their jobs within the first quarter of 2016.
President of the Association of Bureau De Change Operators of Nigeria, ABCON, Aminu Gwadabe, who disclosed this on Monday, February 1, said the planned downsizing followed the continued loss of business by operators after the Central Bank of Nigeria’s (CBN) stoppage of weekly dollar sales to body.
The ABCON boss listed those to be affected as directors, auditors, operations managers and compliance officers, as well as chief executives.
The CBN Governor, Godwin Emefiele had announced a new foreign exchange policy which included the stoppage of weekly dollar sales to BDCs. He ordered the apex bank to henceforth discontinue sales of foreign exchange to BDCs.
“Operators in this segment of the market would now need to source their foreign exchange from autonomous sources. They must however, note that the CBN would deploy more resources to monitoring these sources to ensure that no operator is in violation of our anti-money laundering laws,” Emefiele said.
Speaking on the development, Gwadabe said: “As law abiding citizens and partners in progress with the CBN, we respect the decision of the apex bank as the regulator of the banking industry and foreign exchange market where we operate. While we are not totally surprised by the decision, we, however, believe there are better ways of addressing the challenges in the foreign exchange market.”
He lamented that the BDCs were always blamed whenever there was naira volatility. “Suffice to mention that before the CBN started selling dollars to BDCs in 2006, there were about 270 BDCs in the country.
Despite the harsh operating environment, these operators were able to survive by servicing their clients. Secondly, the BDC industry was created by the CBN to fill a critical gap in the retail segment of the foreign exchange market. Furthermore, the decision to sell dollars to BDCs was in recognition of the role of BDCs to counter the effect of the illegal currency traffickers and the continued depreciation of the naira in the parallel market,” he said.
An aviation expert has said the massive drop in global oil price is yet to reflect on the activities of airline operators as air fares still remain relatively high.
Oil prices have plummeted by more than 50 percent over the last one year, however, the prices of commercial airline tickets had not dropped along with oil prices.
Sharon Mclean, an aviation expert said most airlines are now in fuel contracts that reflect the plummeting global oil prices, and wonders why the price is not falling especially in Africa.
In most routes in the United States and Europe airline prices has dropped.The US Bureau of Labour Statistics in a January report said air fares by foreign travellers on US airlines fell 15.0 per cent in 2015, the largest calendar-year drop since the index was first published in 1987.
The decline in ticket prices was steepest for air travel to Latin American and Caribbean (down 17.8 per cent), but there were also big drops in fares to Asia (down 14.6 per cent) and Europe (down 11.7 per cent).
The International Air Transport Associated (IATA) late last year said that ticket prices have not been cut because airlines are still in contracts for fuel that pre-date the previous months’ oil prices fall. IATA represents 240 airlines or 84 percent of total air traffic.
Aviation Experts say with oil and jet fuel costs down two-thirds since last year, airlines can expect to reduce their overheads by about 20 per cent leading to cheaper air fares across the globe.
Experts say fuel makes up about a third of an airline’s costs. With oil and jet fuel costs down two-thirds since last year, airlines can expect to reduce their overhead by about 20 per cent.
Some airlines said they are using the windfall in fuel costs to reduce debt and to make needed reinvestment in their infrastructure.
The Nigeria Cassava Growers Association has tasked the Federal Government to intensify its effort in cassava farming, noting that country can generate about N8.5trn yearly from the product.
An associate of Lafarge Africa Plc., Chairman of NCGA in Cross River State, Augustine Oqua, who spoke at the opening ceremony of a two-day community business enhancement initiative tagged, “Cassava Cluster Scheme”, organized by the United Cement Company of Nigeria Limited, said cassava had the potential of generating between N5 trillion to N8.5 trillion annually for Nigeria if its production was maximised.
Oqua called for a concrete step towards diversifying the nation’s economy from the monolithic dependence on oil revenue.
He stated that as the largest producer of cassava globally, Nigeria had over 1.25 million cassava farmers that could be redirected to help generate the revenue adding that apart from the cassava flour, ethanol could be extracted from cassava for the production of electricity.
“Cassava is more available than any other crop in Nigeria. It can generate between N5 trillion and N8.5 trillion annually which is far above the budget of the country. Cassava alone can transform Nigeria and even Cross River State which is the largest producer in the country.
We can use it to replace crude oil. “Today, UniCem is spending millions of naira to buy gas to run electricity, but ethanol, could be got from cassava as a bi-product and used to generate electricity. Our major problem is the acquisition of land for the production of cassava and that is why we need government intervention.
” While harping on the need to diversify the nation’s economy, the Head, Public Affairs, Lafarge Africa Plc., Mr. Ayi Ita-Ayi, averred that it had become imperative to look at other areas as means of livelihood. “The essence of this workshop is to ensure that we have alternative means of livelihood. At the moment, we are having issues with the economy because of dwindling oil revenue. Our economy is oil-based and we are thinking that globally and locally there is a threat.
“That is why we have put together this stakeholder’s workshop involving UniCem, host communities in three local government areas of Cross River State, to draw support from government on agriculture intervention schemes,” he said.
A joint team of security operatives have demobilised suspected Improvised Explosive Devises, IED, planted close to the office of the Borno State Pilgrims Welfare Board in Maiduguri.
This was disclosed on Monday by the State Police Command spokesperson, Victor Isuku, in Maiduguri, the state capital.
According to Isuku, the IEDs, which were planted by suspected members of Boko Haram sect were demobilised by a joint security team.
Isuku said, “I can confirm that it was a joint police/military operation that demobilised the IEDs but thank God, no life was lost or injuries recorded.”
It would be recalled that no fewer than 50 people were on Saturday killed in Dalori village, which is situated at the outskirts of Maiduguri.
As the details of the 2016 Budget continues to unfold, it has emerged that President Muhammadu Buhari has slashed the N100 billion Constituency funds meant for the 469 Senatorial Districts and Federal Constituencies to N60 billion.
The President ordered the reduction, a situation which has placed the constituencies of the Principal Officers in the Senate and House of Representatives in jeopardy.
The National Assembly has since 2008 struck an agreement with the Federal Government whereby some projects are set aside for execution in the 109 Senatorial Districts and 360 House of Representatives seats through different Ministries and parastatals.
The projects are designated as constituency projects, though, some Nigerians went away with the impression that the funds are allocated to the lawmakers.
The amount meant for execution of the projects have remained constant at N100 billion in the past years, with each geopolitical zone getting N10 billion, while the balance of N40 billion is spread among the Senatorial Districts and Federal Constituencies of the Principal and Presiding officers in the two chambers.
Investigations however confirmed that while the President government has agreed to continue to fund the Constituency projects, it has however indicated that the amount would be slashed to N60 billion.
It was gathered that the Senators and members of the House of Representatives have been requested to submit details of the project to be executed in their constituencies to the Committees on Appropriation in the two chambers.
Sources affirmed that the cut would affect the N40 billion meant for execution of projects in the constituencies of Principal Officers of the Senate and the House of Representatives, as according to a source, all the constituencies are only to now benefit from the N60 billion allocations.
“Now that the sum of N40 billion is being removed from the constituencies of the Senate President, the Speaker, their Deputies and the other Principal officers, a huge distortion might occur in the manner the allocations are made,” one of the lawmakers said.
Sokoto State Government has allocated over N34 billion to tackle the challenges in the education sector, the Commissioner of Basic and Junior Secondary Education, Dr Jabbi Kilgori, has said.
Kilgore told the News Agency of Nigeria (NAN) on Monday in Sokoto that the allocation was in line with the declaration of state of emergency on the sector by the government.
He said that the money would be channelled towards improving infrastructure, teachers welfare and feeding of students among others.
“The state government declared emergency in the sector due to the enormity of the problems bedevilling it.
“The sector has continued to be bogged down by myriad of problems in spite of the several efforts made by the state government to move the sector forward,” he explained.
Kilgori said more than one million pupils and students in primary and junior secondary schools in the state would be catered for under the schools feeding programme.
“The pupils and students in primary schools, as well as day students in Junior Secondary Schools will be getting one meal per day.
“The pupils and students would be getting nutritious meals to boost their mental and physiological growth, to enable then focus on their studies.”
Kilgori explained that all areas of critical needs in the sector would be given due attention.
He said apart from massive construction, expansion, rehabilitation and equipping of schools, the government would also construct houses to accommodate teachers.
“The state government had also introduced rural allowances for teachers this year,” Kilgori said, adding that the administration would continue to accord top priority to teachers welfare including their training and retraining.
“The state government is fully committed to ensuring the successful implementation of the state of emergency to take the education sector out of its present crisis,” Kilgori pledged.
In its bid to enhance local manufacturing in Nigeria, Unilever Nigeria Plc has disclosed that it would set up new plants within the country.
The president, Africa-Unilever, Mr Bruno Witvoet recently revealed the company’s plans to increase its investment in the country and also that the company is working on its backward integration plans, driving towards 100 per cent local sourcing over time.
“Our plans for increased investment will also bring about employment opportunities in the country as workers will be recruited for the new production line, and in the farms for the production and sourcing of local raw materials.”
The Senate president, Bukola Saraki assured that the present administration is vehemently working towards its policy to diversify the economy, also making the country business friendly. He further stated that local sourcing of raw materials will help provide ready market for local produce and thus empowering local farmers.
Saraki noted that the National Assembly will readily give its support and also provide all the incentives that are required to ensure that business and investors are encouraged to make the kind of investments promised by Unilever.
Minister of Finance, Mrs. Kemi Adeosun debunked reports, suggesting that Nigeria has applied for emergency loans from the World Bank and the African Development Bank.
The Minister, through her Special Adviser on Media Matters, Mr. Festus Akanbi, said Nigeria had not applied for any emergency loan.
She was quoted as saying, “the truth is that Nigeria, as part of the plans to fund the 2016 budget currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8trillion principally for investment in capital projects to stimulate the economy.”
She explained that the option of the World Bank is to ensure stable financing structure, pointing out that 2016 budget is part of the Medium-term economic framework of the Federal government, which the World Bank is aware of.
The proposed budget deficit, according to her, will be funded equally through external and domestic sources.
Nigeria is exploring the options of multi-lateral agencies like the World Bank and AFDB and export credit agencies such as China Exim Bank due to their concessionary interest rates.
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