Tag Archives: Nigeria’s Economy

Drop In Oil Production Bad For Nigeria’s Economy- Kachikwu

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Minister of State for Petroleum, Dr Ibe Kachikwu, has identified seven key implementation strategies to boost the petroleum industry and enhence export of refined products by 2019.
Kachikwu, who spoke at the Presidential Quarterly Business Forum between the Private Sector and the Economic Management Team (EMT) in Abuja on Monday, listed policy and regulation; business environment and investment drive; transparency and efficiency; stakeholder management and international coordination as of primary concerns of the ministry.
Represented by Mr Johnson Awoyemi,, the Senior Technical Adviser of the ministry, the Minister identified peace and security in the Niger Delta region as being crucial in the programme.
Others, according to him, include engaging in gas revolution as well as increasing refineries and local production capacity.
“Oil and gas will drive diversification but the drop in oil production to 1.56 billion barrels per day from the annual estimate of 2.2 billion barrels per day will negatively affect growth.’’
The Minister stressed the need to empower the Niger Delta region and ensure peace in the region by stopping militancy and enhancing the attainment of national aspirations in oil and gas production.
Kachikwu said that several companies in the sector are indebted in royalties to the tune of about four billion dollars. He said there was need for policies on oil, gas, downstream and fiscal reform, adding that the proposed petroleum industry bill (PIB) had become very imperative.
Kachikwu said there were challenges in the oil and gas sector which led to drop in the nation’s GDP growth from 6 per cent to 4 per cent, stressing that this had led to shortage of funds for providing critical infrastructure.
He explained that the 29 per cent decline in oil production has resulted in the loss of 700,000 million barrels per day.

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FG To Inject 350bn Naira Into Nigeria’s Economy

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The Nigerian government says it will inject 350 billion Naira into the economy in the next few months to stimulate it.

 The government’s plan was announced at the end a two-day National Economic Council (NEC) retreat held at the Presidential Villa, Abuja, the nation’s capital.

Explaining that the Federal Government is keen at using the 2016 budget to fast-track economic diversification, the Minister of Finance, Mrs Kemi Adeosun, said efforts had been put in place to ensure that the spending on the capital projects trickles down to all Nigerians.

Mrs Adeosun, in her paper at the second day of the National Economic Council retreat in Abuja, said: “We are going to spend money and this will be done in a disciplined manner and in right places.

“The Federal Government has a platform and system of control in place to ensure transparency. Spending will not be reckless.

“We are pumping 350 billion Naira into the economy in the next one quarter to help the economy to bounce back. That has never happened in the history of this country”.

According to her, part of the money would be used to offset contractual debts.

Credit: ChannelsTv

Read Lagarde’s Prediction On Nigeria’s Economy In 2016

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The Managing Director of the International Monetary Fund (IMF), Ms. Christine Lagarde, has predicted that the Nigerian economy will recover marginally in 2016, notwithstanding low oil prices.

Lagarde, in a statement posted on the fund’s website yesterday at the conclusion of her visit to Nigeria, said Nigeria experienced a decade of strong growth, averaging 6.8 per cent a year, “in 2015, however, growth is expected to slow to about 3 1/4 per cent, with a slight recovery in 2016”.

She stated that her visit to Nigeria was extremely fruitful and informative and thanked President Muhammadu Buhari for meeting with her to discuss Nigeria’s achievements and its outlook.

She also thanked the Finance Minister, Mrs. Kemi Adeosun, and Governor Godwin Emefiele of the Central Bank of Nigeria (CBN) for “their insights. In addition, I had the honour to address members of the National Assembly, chaired by Senator Bukola Saraki”.

On the Nigerian economy, she added: “Nigeria is the largest economy in aub-Saharan Africa, with the largest population, and its important role at the regional level has become increasingly recognized.

“The economy is well diversified, no longer dominated by agriculture and oil, with services accounting for almost half of GDP, including a significant home-grown film industry and innovative startups from fashion to software development.

“Nigeria has also experienced a decade of strong growth, averaging 6.8 per cent a year. 1n 2015, however, growth is expected to slow to about 3 1/4 per cent, with a slight recovery in 2016.”

She said during her meetings with the authorities, discussions focused on how to maintain economic progress while making the transition towards more inclusive and sustainable growth.

Credit: ThisDay

Nigeria’s Economy May Slip Into Recession, CBN Warns

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From the Central Bank of Nigeria (CBN) yesterday came a warning shot on the economy: Nigeria risks sliding into recession next year.

The apex bank also hinted that the implementation of the Treasury Single Account (TSA) might affect the country’s economic growth.

Speaking yesterday at the end of the Monetary Policy Committee (MPC) meeting in Abuja , CBN Governor Godwin Emefiele lamented that with “two consecutive quarters of slow growth, the economy could slip into recession in 2016 if proactive steps are not taken to revive growth in key sectors of the economy.”

Emefiele added: “The overall economic environment remains fragile. The economy further slowed in the second quarter of the year, making it the second consecutive quarterly less-than-expected performance.”

In the face of the prevailing circumstances, the MPC advocated that a “synergy between monetary and fiscal policies remains the most potent option to sustainable growth.”

Read More: thenationonlineng

Nigeria’s Economy Won’t Collapse, Says Okonjo-Iweala

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Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Sunday night said that despite the various challenges facing the country, the national economy will not collapse. The minister, in a statement issued by her Special Adviser on Communications, Paul Nwabuikwu, said this during a chat with some journalists.

She dismissed allegations that the economy was in ruins, saying the administration of President Goodluck Jonathan had put in place solid economic legacies for the incoming government.

The minister also advised politicians and opinion leaders not to denigrate the economy because negative and false comments on the economy could have negative impact the economy, the exchange rate, the stock market and reduce investor confidence.

Read more:  DailyPost