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FG committed to bridging infrastructure deficit – DMO DG

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Ms Patience Oniha, the Director-General, Debt Management Office (DMO), on Thursday reiterated the Federal Government’s commitment to bridging the nation’s  infrastructure deficit to attract foreign investors into the country.

Oniha said this while delivering the keynote address at the 4th National Budget Roundtable and Panel Discussion at Covenant University, Ota, Ogun.

The News Agency of Nigeria (NAN) reports that the budget roundtable was organised by the Centre for Economic Policy and Development Research (CEPDeR) of the institution.

The event had the theme: “National Budgeting for Economic Recovery and Sustainable Development in Nigeria.”

Oniha noted that most of the critical infrastructure built by the Federal Government had been funded from internal and external borrowings.

She said government borrowing was not necessarily bad if used to finance important developmental projects and programmes.

The director-general listed some of the infrastructure built by the Federal Government as the Lagos-Ibadan Expressway, 2nd Niger Bridge, train station in Oddo, Lagos and Enugu airports changed from local to international.

“The Nigerian government has successfully utilised borrowing as a tool for economic recovery, to bring the economy out of cycles of recessions, first in 2017 and second in 2021.

“Government borrowing can also support other sectors of the economy that attract foreign investors and have multiplier effects on the country,” she said.

The director-general noted further that the nation’s current debt profile to GDP ratio was 22 per cent, adding that the maximum debt ratio to GDP of any country should be 40 per cent.

“The nation’s debt profile is fast growing as the country has a huge infrastructure deficit.

“However, the government is working tirelessly to diversify revenue sources to reduce pressure on crude oil, which is prone to volatility,” she said.

Oniha added that spending on infrastructure by the Federal Government was meant to create job opportunities for the youth.

In his welcome address, the Vice-Chancellor of the University, Prof Abiodun Adebayo, said the country’s natural and human resources endowment had placed it in a position to play a prominent role in the global economy.

Adebayo stressed the need for the socio-economic potential of the nation to be harnessed, so as to achieve meaningful economic growth.

“The nation’s economic growth is bedeviled by supply constraints such as a shortage of essential skills and appropriate technology to drive growth, energy, foreign exchange and unfriendly business regulations,” the vice-chancellor said.

The Country Director, BudgIT, Nigeria, Mr Gabriel Okeowo, stressed the need for the Federal Government to put necessary measures in place to meet revenue projection in the nation’s annual budget.

Okeowo noted that the country’s revenue short fall had hindered the implementation of some of the critical infrastructure.

“The country needs to fix its exchange rate, because it is adversely impacting on the nation’s debt profile,” he said.

(NAN)

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Business & Economy

Nigeria to begin processing of raw gold, others — Minister

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Nigeria has begun the process of refining gold, gemstones and other mineral resources in the six geo-political regions of Nigeria.

The Minister of Mines and Steel Development, Mr Olamilekan Adegbite said this when he appeared on the News Agency of Nigeria (NAN) Forum in Abuja.

According to him, adding value to the country’s mineral resources will go a long way in creating jobs and wealth for Nigerians.

He said six plants were being set up in the various regions to process mineral resources deposited in those regions.

“We have set out to do six regional projects and one of them is the gold souk in Kano, the North West region.

“Before now, our gold was being exported in its raw form for close to nothing to foreign counter for processing and we end up buying them expensively.

“We have trained people who will make jewellery and they will be resident in the plant,” he said.

He said similar plants had been set up in the North East, Bauchi for processing kaolin, while in the North Central Kogi State was chosen for establishment of a gold smelting plant .

Adegbite also said in the South West, in Ibadan, gemstone plant had been established while in the South East, lead processing plant was established in Ebonyi.

The minister said in the South South region, baryte processing plant had been established, adding that “Nigeria imports baryte to the tune of 300 million dollars every year.

He said the six regional projects were at advanced stage of completion and would be commissioned soon.

 

 

(NAN)

 

 

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Dangote plans 300,000 fresh jobs for Nigerians

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Aliko Dangote
Aliko Dangote
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Africa’s foremost industrialist, Aliko Dangote, is optimistic that the new multibillion Naira investment in the sugar sub-sector would help provide no fewer than 300,000 jobs in Nigeria.

A statement from the Corporate Communication Department of the company, said that the Group’s President, Dangote said the company was providing fresh funds for expanding its operations in the sugar sub-sector.

Dangote, who was speaking at the Flag-off Ceremony of the 2022/2023 Crushing Season and Outgrower Scheme Awards in Numan, Adamawa, said the opportunities would include both direct and indirect jobs.

He said: “We are making massive investment in Adamawa State through expansion of DSR Numan’s sugar refining capacity from 3000tcd to 6000tcd, 9800tcd, and to 15,000tcd.

”DSR will be able to create about three hundred thousand jobs, direct and indirect, with positive multiplier effects on the economy nationwide.”

The Dangote Group is the biggest employer of labour in Nigeria outside the government.

Dangote was appointed Chairman, National Job Creation Committee in 2010 to assist the Federal Government in providing more employment opportunities for Nigerians.

The Dangote President had also announced that his company was doubling its spending on CSR schemes in host communities in Adamawa State, the location of its 32,000 hectares integrated sugar complex.

Speaking in Numan, Minister of Industry, Trade, and Investment, Otunba Adeniyi Adebayo, described the Dangote Sugar Refinery as the biggest contributor to the development of the sugar development effort of the Federal Government.

The Minister also commended Dangote for the massive support through his Corporate Social Responsibility scheme.

In the same vein, the Dangote Refinery and Petrochemicals is expected to create some 250,000 job opportunities when completed next year.

Already Dangote Cement Plc is one of Africa’s biggest job providers in the manufacturing sector.

 

 

 

(NAN)

 

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Federal Allocation: FG, States, LGs Shared N736.8bn In October – FAAC

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The Federation Account Allocation Committee (FAAC) has distributed a total of N736.782 billion to the three tiers of government as federation allocation for the month of October 2022.

The funds are inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Exchange Gain and augmentation from Non-Oil Revenue.

Of the sum, the Federal Government received N293.955 billion, the states got N239.512 billion, and the Local Government Councils got N177.086 billion, while the oil-producing states received N26.228 billion as Derivation (13 per cent Mineral Revenue).

A communiqué issued by the Federation Account Allocation Committee (FAAC) indicates that the Gross Revenue available from the VAT for October 2022 was N213.283 billion, which is an increase compared to what was distributed in the preceding month.

It also shows that the Federal Government got N31.992 billion, the states received N106.642 billion, Local Government Councils (LGCs) got N74.649 billion.

The Gross Statutory Revenue of N417.724 billion distributed was lower than the sum received in the previous month, from which the Federal Government was allocated the sum of N206.576 billion, states got N104.778 billion, LGCs got N80.779 billion, and Oil Derivation (13 per cent Mineral Revenue) got N25.591 billion.

The communiqué stated that N70 billion augmentation was distributed to the three tiers of government, including the Federal Government (N36.876 billion), states (N18.704 billion), LGCs (N14.420 billion).

In addition, another extra N30 billion augmentation from non-oil revenue was distributed with N15.804 billion allocated to the Federal Government, N8.016 billion to the states, and N6.180 billion to LGCs.

According to the FAAC, N5.775 billion from Exchange Gain was shared to the Federal Government (N2.707 billion), states (N1.373 billion), and LGCs (N1.058 billion), while Derivation (13 per cent of Mineral Revenue) got N0.637 billion.

It also revealed that Oil and Gas Royalties, Petroleum Profit Tax (PPT) and Import Duty recorded considerable decreases, while VAT, and Companies Income Tax (CIT) increased significantly, and Excise Duty increased marginally.

The total revenue distributable for the current month of October was reportedly drawn from Statutory Revenue of N417.724 billion, VAT of N213.283 billion, Exchange Gain of N5.775 billion, and N100 billion augmentation from Non-Oil Revenue, bringing the total distributable for the month to N736.782 billion.

However, the balance in the Excess Crude Account (ECA) as of November 23, 2022 is said to stand at $472,513.64.

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