Business 360 News brings you headlines and stories making the rounds on the news today.
Nigeria will borrow N6tn in 2021 – Finance minister
The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said Nigeria’s total public debt will hit N38tn by December 2021. Ahmed said this on Tuesday in her presentation to the Senate Committee on Local and Foreign Debts.
The minister said, “The total public debt stock comprising the external and home debts of the federal and state governments and the Federal Capital Territory stood at N31.01tn ($85.90bn) as of June 30, 2020. “It is projected, based on existing approval, to rise to N32.51tn by December 31, 2020 and N38.68tn by December 31, 2021.”
This means that the country will borrow N6.17tn in 2021. She attributed numerous abandoned road projects across the country to poor funds releases occasioned by dwindling revenue. Ahmed explained that the current Sukuk fund was N162bn for 45 roads cut across the six geopolitical zones. She said, “I am one person that feels that we should just take one major road in one geopolitical zone and finish it. “We were not able to do that because of the processes in which appropriation is made both at the executive as well as the legislative arms of government.
FG seeks fresh $1.2bn loan from Brazil
The Federal Government is seeking a $1.2bn external borrowing from Brazil to finance agricultural programmes in the 2021 budget. A request for approval has also been transmitted to the National Assembly.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, who appeared before the House of Representatives Committee on Finance in Abuja on Tuesday to defend the budget proposed by her ministry, made this known.
Ahmed disclosed that the Federal Government sent a request to the National Assembly to approve the loan from the Brazilian government to address issues in the agriculture value chain as Nigeria. Ahmed also said the Federal Government would acquire 100,000 hectares of land in each state for food production, adding that link roads would be built in such locations to provide access for farmers to move farm produce to markets and reduce post-harvest losses.
Chairman of the committee, Mr James Faleke, had asked the finance minister about diversification of the economy. Responding, Ahmed said, “For borrowing to improve industry, we are before the parliament. I request for the approval for loan that we call the Green Imperative Programme which is for loan of $1.2bn from the Brazilian government.
Firms expect borrowing, inflation rates to rise – CBN
The Central Bank of Nigeria has said the firms that participated in its latest business expectations survey expect borrowing and inflation rates in the country to rise further in the coming months.
The CBN said in its October 2020 Business Expectations Survey Report, released on Tuesday, that the respondent firms expressed pessimism on the macro economy. It said they were however optimistic in their outlook for November with a confidence index of 37.9.
“Respondents’ outlook on volume of total order, volume of business activity, average capacity utilisation and financial condition (working capital) were positive. However, their outlook on access to credit was negative in October 2020,” it said.
The apex bank said the survey was conducted online from October 12 to 16, with a sample size of 1,050 businesses nationwide. It said, “Respondent firms expect the naira to depreciate in the current month, but appreciate in the next month, next two months and next six months, as their confidence indices stood at -6.6, 8.4, 18.3 and 35.0 index points respectively. “Respondent firms expect borrowing rates to rise in the current month, next month, next two months and the next six months with indices of 16.2, 13.5, 16.2 and 15.8 points respectively.”
FG releases funds to Discos for mass metering
The Federal Government has released funds to power distribution companies for the mass deployment of about six million free electricity meters to power consumers nationwide. It was gathered that some senior officials of power distribution companies met with the Central Bank of Nigeria on Tuesday and funds were released for the purpose of mass metering in Nigeria.
The amount released was not made public. However, The PUNCH had exclusively reported on Monday that the Federal Government would spend between N269.38bn and N497.13bn for the provision of the six million free meters to various unmetered power users.
The Managing Director, Abuja Electricity Distribution Company, Ernest Mupwaya, confirmed the release of funds for the mass deployment of meters in Abuja on Tuesday. Speaking at the inauguration of the free mass metering programme for power users served by the AEDC, Mupwaya said the initiative had been designed with sufficient resources to meter all customers. He said, “The Federal Government, who has 40 per cent shareholding, have sourced sufficient funding to support Discos through a low-interest shareholder loan that will make it possible for Discos to receive sufficient meters to close the metering gap for good.”
FG seeks special fund for aviation sector
Minister of Aviation, Hadi Sirika, has advocated the establishment of Aviation Development Fund for the industry. Sirika spoke yesterday during his presentation in the ongoing three-day public hearing on the six aviation Executive Bills held at the National Assembly complex in Abuja.
Among the bills being considered are “a Bill for an Act to repeal the Civil Aviation Act 2006 and to enact the Civil Aviation Act for the Regulation of Civil Aviation in Nigeria and for Other Related Matters; “a Bill for an Act to repeal the Nigerian College of Aviation Technology Act and to enact the Nigerian Aviation Technology Act to provide for its organisation, control and operation and for related matters. Also included is a Bill for an Act to repeal the Nigerian Airspace Management Agency Act for the purpose of providing effective air navigation.
” Responding to concerns over inadequate safety equipment at the nation’s airport, passenger comfort and perceived indifference of the regulatory agency, the Nigeria Civil Aviation Authority, the Minister of Aviation maintained that the strategic sector is battling with paucity of fund. He declared that the Aviation Development Fund being proposed with friendly interest rate would come handy for the sector to address its enormous financial challenges.
