Money market
Oil revenue, GDP experiencing growth under Tinubu — Wale Edun
…Says economy grew by 2.99 percent
By Matthew Denis, Abuja
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the Nigerian economy and oil revenues are experiencing a positive growth rate under President Bola Ahmed Tinubu.
Speaking during the presentation of his ministry’s performance, one year into the administration of President Bola Tinubu in Abuja yesterday, Edun stated that the economy grew by 2.99 percent, surpassing the 2.3 percent growth seen in the first quarter of 2024.
According to him, the improvement in economic growth highlights the effectiveness of President Bola Tinubu’s economic strategy.
“This growth in agriculture provides the monetary authority with the leverage needed to stabilize foreign exchange (FX) rates,” Edun explained. By continuing on this path and intensifying our efforts, we are on track to lift many Nigerians out of poverty,” he said.
The Minister, who said that revenue collection had also seen significant improvements, added that it has enabled the government to service its debts without resorting to the Central Bank’s Ways and Means advances, a practice that has previously been a cause for concern regarding fiscal discipline and inflation.
The Finance Minister emphasised that these positive economic indicators reflect the current administration’s commitment to sustainable economic growth and fiscal responsibility.
The Minister maintained that the Ministry, under his stewardship will continue to ensure the full implementation of the reform policies and programmes of the government in order to restore stability to the economy, in line with the Renewed Hope Agenda of the present administration.
Edun noted that the reforms have led to an increase in revenue, enabling the government to pay its debts and invest in infrastructure.
The Minister explained that the government has also implemented social investment programmes to protect the poor and vulnerable, with direct payments of N75,000 to 15 million households.
Additionally, he said, efforts are being made to improve food security, with N200 billion allocated to intervention programmes.
Edun added further that access to credit has also been improved, with N100 billion allocated to consumer credit and grants of N50,000 being given to one million nano industries.
He informed further that the government has implemented a system of payment to ensure that Nigeria’s money is spent wisely and accountably.
The Minister who emphasised the importance of infrastructure in growing the economy and creating jobs, added that the fund has been set up to provide institutional long-term funds to support housing construction and low-interest mortgages for the average Nigerian.
“The government’s efforts have led to an improvement in Nigeria’s international credit rating, with Moody’s and Fitch increasing and improving Nigeria’s rates to positivity,” he stated.
The Minister who was accompanied to the event by the Permanent Secretary, Federal Ministry of Finance, Mrs Lydia Shehu Jafiya, the Permanent Secretary, Special Duties, Mr. Okokon Ekenam Udo, Heads of Agencies under his supervision as well as Directors of the Ministry, expressed optimism that continuing on this path will lead to a growing economy and improved living standards for all Nigerians.
“We have room to feel that continuing on these paths, redoubling our efforts, following Mr President’s agenda at the state and federal level, will lead us to a growing economy that takes us out of poverty and produces a better life for all Nigerians,” Edun emphasised.
In his closing remarks, the Honourable Minister of Information and National Orientation, Mohammed Idris, urged journalists to ensure they provide wider publicity for the Briefing through patriotic and positive reportage for the benefit of the country.
He assured that the President Bola Ahmed Tinubu-led Administration is determined to improve the lives of its citizens through deliberate strategic initiatives, programmes and projects that have direct impact on their lives.
Demand deposits have jumped by 206.83 percent from N9.67 trillion in May 2019 to N29.67 trillion this year’s May, according to data from the Central Bank of Nigeria’s website.
The data showed that the country’s demand deposits grew by 9.31 percent between May 2019 and May 2020 to N10.57 trillion, despite global economic uncertainties caused by the COVID-19 pandemic.
The growth continued into 2021 and beyond, surpassing N20 trillion in early 2023.
Factors contributing to the growth include increased economic activities, government stimulus measures, and enhanced liquidity in the banking system.
An economist at Lotus Beta Analytics, Shedrach Israel, in a conversation with our correspondent on Friday, noted that the surge in demand deposits signified robust consumer confidence and liquidity in Nigeria’s financial system.
“It reflects heightened economic activities, investments, and savings mobilisation within the country, supporting lending activities and stimulating economic growth,” he added.
However, the rising trend in demand deposits also raises considerations for monetary policymakers, necessitating vigilant monitoring to ensure financial stability, manage inflationary pressures, and sustain long-term economic growth.
Experts noted that while the growth in demand deposits reflected a resilient financial sector, it also required careful management to mitigate potential risks and ensure sustainable economic development.
An analyst at Phemmy Gracey Limited, Olorunfemi Idris, noted that the increase in demand deposits had important implications for the economy, providing banks with more funds to lend and potentially boosting credit availability and economic growth.
However, he also raised concerns about inflation and the potential surge in money supply, which could lead to economic instability if not managed properly.
…Extends probe panel’s deadline by two months
The Senate has approved an additional two months for the Ad-hoc Committee investigating the N30 trillion Ways and Means facilities granted to the Federal Government by the Central Bank of Nigeria (CBN) between 2014 and 2023.
The Committee, chaired by Senator Isah Jibrin, APC, Kogi East, had requested more time to receive vital information from relevant agencies involved in the spending of the monetary facilities.
Senator Jibrin stated, “Most of the relevant agencies have been contacted, and their documents are being thoroughly scrutinised as regards spending of the disbursement gotten from the ways and means.”
He added, “Being a very sensitive national assignment, the committee is carrying out a very thorough investigation devoid of rushing into conclusion.”
The Committee has intensified its efforts to ensure a thorough investigation, and the additional time frame will enable them to submit a comprehensive report in September. Senator Jibrin warned that the Committee may summon heads of agencies that fail to respond to vital information requests.
The investigation into the N30 trillion Ways and Means facilities was initiated by the Senate in March, with a six-week deadline. The Committee’s report will shed light on how the funds were disbursed, for what purposes, and whether they were expended efficiently.
The Committee that is probing the humongous N30 trillion ‘Ways and Means’, which was released as loan to the Federal Government during the former President Muhammadu Buhari administration which is chaired by Senator Jibrin Isah, APC, Kogi East, has Senators Asuquo Ekpenyong, APC, Cross River South; Mohammed Tahir Monguno, APC, Borno North; Victor Umeh, LP, Anambra Central and Olamilekan Adeola, APC, Ogun West as members.
Others are Senators Sani Musa, APC, Niger East; Aliyu Wadada, SDP, Nasarawa; Abdul Ningi, PDP, Bauchi Central and Ipalibo Banigo Harry, PDP, Rivers West.
The ‘Ways and Means’ is an overdraft taken directly from the Central Bank of Nigeria to solve contingency needs of the nation following approval and directive of the executive arm of government which would have to be ratified by the parliament.
The financing of government deficits through Ways and Means facilities often leads to macroeconomic instability, causing inflation and high exchange rates due to excess liquidity in the economy.
Although the CBN law restricts Ways and Means advances to 5% of the previous year’s revenue, this limit has been frequently exceeded in past years.
In an effort to address this issue, CBN Governor Olayemi Cardoso announced in February that the bank will no longer provide Ways and Means advances to the government until all outstanding debts are repaid.
Access Bank, Africa’s leading full-service commercial bank, has partnered with the British Council for the seventh edition of the British Council Recognition and Outstanding Cambridge Learner Awards (BROCLA).
The partnership is in line with Access Bank’s commitment to supporting the educational sector and recognizing students who have excelled on national and global stages in the May/June 2023 and Oct/Nov 2023 Cambridge International Examinations.
The well-attended event which took place last week at the Civic Centre in Victoria Island, Lagos, testifies to Access Bank’s brand positioning and its strategic alliances with reputable partners.
Access Bank said the partnership offers it a unique blend of global prestige, strategic networking opportunities, enhanced brand visibility, alignment with corporate social responsibility (CSR) goals, and positive public relations.
Speaking at the British Council Recognition and Outstanding Cambridge Learner Awards, Chioma Kema Ogwo, Head, Emerging Businesses Team at Access Bank said the importance of education cannot be overstated, noting that it is a sector Access Bank is heavily investing in.
She stated that it partnered with the British Council in the 7th edition of the British Council Recognitions and Outstanding Cambridge Learner Awards (BROCLA) because of Access Bank’s value for education.
Ogwo said that in addition to the awards presented at the event, Access Bank will be giving the successful students some financial support as they begin this new phase in their lives.
“We at Access Bank are big on education and we have several offerings for the education value chain, from the parents – including access to finance for the school fees of their wards, access to exclusive offerings while transiting to visit their wards abroad, supplementary cards that can be used by their wards abroad and so much more.
“The schools are also not left out as we have access to affordable finance options for the schools for working capital, asset finance, and school expansion projects. We have a special school account for schools that recognizes their unique term cycles and offers a wide range of non-financial offerings,” Ogwo said.
Earlier in his address, Senior Manager, Sub-Saharan Africa, Cambridge International Education, Der Riet commended the 48 recipients of the high achievement awards and eight students who have excelled across multiple subjects to earn the best awards, describing their dedication to studies and ability to excel across a diverse range of subjects as truly commendable.
He acknowledged Access Bank for partnering with the British Council for the Recognition and Outstanding Cambridge Learner Awards 2024 saying that it is a vindication of the Bank’s commitment to promoting education in Nigeria.
“I also want to acknowledge Access Bank. Access Bank is also playing a big role here and is going to additionally recognise the awardees who are present in the room with awards. We want to thank the bank for this support and partnership; it’s a testament to the bank’s commitment to promoting education,” he said.
Regional Director, Sub-Saharan Africa, Cambridge International Education, Juan Visser said of all the outstanding learner events across the world, Nigeria is by far the most glamorous, and acknowledged all the successful students for their brilliance, ambition, strength, and for simply being outstanding.
“We are here to celebrate 95 Cambridge learners coming from 37 Cambridge schools, or international schools accredited to offer Cambridge, with a total of 134 awards. Cambridge has an important role to play together with the British Council in Nigeria in providing quality education to our schools and learners worldwide,” he said.
Visser who averred that quality education is the greatest driver to transforming societies and lives, said that the students gathered for the event are a testament to that adding “I know this is a big day for you all and you have worked so hard for this moment. Even with the disruption of a global pandemic, you continue to study hard and achieve excellence. People often forget that the cohort of learners here today was highly impacted by the pandemic and had to work through that.”
The Outstanding Cambridge Learner Awards are a group of awards that recognise exceptional learner achievement in Cambridge examinations around the world. Awards results are generated electronically using Cambridge’s awards data generation system.
Cambridge awards are based on overall standard marks rather than percentage marks or grades. The learner with the highest overall standard mark in the world or the country/territory will receive the award for that particular subject.
The 2024 British Council Recognition and Outstanding Cambridge Learner Awards event was witnessed by students from various schools, parents, teachers, British Council Nigeria officials, and other distinguished guests including Hon. Jamiu Tolani Alli-Balogun, Lagos State Commissioner for Basic and Secondary Education.
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