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ERGP 2017- 2020: How FG Can Achieve 7% Economic Growth- Otunuga

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Following the unveiling, on Tuesday, the much expected Economic Recovery and Growth Plan (ERGP) 2017-2020, Lukman Otunuga, research analyst at FXTM has admonished the Government on critical measures to take in order to actualize projected 7% economic growth during the four-year period. 

The Federal Government expects the economy to climb out of recession and grow 2.19 percent this year, according to the Ministry of Budget and National Planning.

In a statement made available to the media by Akpandem James, the Media Adviser to the Minister of Budget and National Planning, Senator Udoma Udo Udoma, the ERGP focuses on achieving macroeconomic stability and economic diversification by undertaking fiscal stimulus, ensuring monetary stability and improving the external balance of trade.

The ERGP, which aims to increase oil production to 2.5 million barrels per day and for Nigeria to become a net exporter of refined petroleum products by 2020.

The goal of the ERGP is also to increase export earnings and government revenues by an additional N800 billion a year.

Under the plan, the government also expects to earn N35 billion from the sale of some national assets, including oil joint ventures, and reducing stakes in other oil and non-oil assets.

The government said it would review and possibly remove a ban on accessing foreign exchange for 41 goods and services.

Nigeria hopes to improve tax collection to raise N350 billion per annum, in part, by boosting a luxury goods tax to 15 per cent in 2018 from its current rate of 5 per cent.

The goal is to increase the overall tax to GDP ratio to 15 percent from 6 percent between 2017 and 2020.

In the agriculture sector, the Federal Government wants self-sufficiency in rice by 2018 and in wheat by 2019 or 2020, and hopes to be a net exporter of rice, cashew nuts, groundnuts, cassava and vegetable oil by 2020, according to the plan.

Commenting on the economic recovery plan, Otunuga said, “A feeling of positivity was felt across the Nigerian economy this week, following the highly optimistic economic growth recovery plan for 2017-2020 that painted an encouraging outlook for the nation.

“The four-year plan was anchored around achieving healthy economic growth and sustainable development, boosting sentiment towards Nigeria which is currently in the process of a critical structural transformation. With a strong focus on the nation augmenting both public and private sector efficiency, whilst also increasing overall productivity, a growth forecast of 7% by 2020 could be a possibility”.

He said that moving forward, Nigeria needs to achieve a stable macroeconomic environment, reinvest in agriculture and reinforce infrastructure to promote sustainable economic growth.

“This recovery plan may be received positively by the international investment community and as such, could translate to an increased FDI in the medium to longer term”, Otunuga added.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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