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MTEF/FSP: Senate Threatens CBN, NCC, Others.

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MTEF/FSP:Senate threatens CBN, NCC

 

MTEF/FSP: Senate Threatens CBN, NCC, FIRS Others With Zero Budget Allocation.

The Senate threatens CBN and some revenue generating agencies of the federal government on Friday with zero budgetary allocation if they fail to appear before its Joint Committees on Finance and National Planning to defend their positions as contained in the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF/FSP.

The chairman of the Senate Committee on Finance, Senator Solomon Adeola (APC, Lagos West) gave the threat at the opening of a five-day public hearing on 2021-2023 MTEF and FSP documents.

“Any head of agency that refuses to appear before the Committee to defend figures it submitted as presented by the President to the Senate risks a zero allocation in the incoming budget among other penalties” the lawmaker said.

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The agencies scheduled to appear before the panel today included: the Central Bank of Nigeria (CBN), Nigeria Communication Commission (NCC), Nigerian Maritime Administration and Safety Agency (NIMASA),Nigerian Ports Authority (NPA), Nigerian Deposite Insurance Corporation (NDIC) and Federal Inland Revenue Services (FIRS).

The committee also said it would carried out a thorough investigation on the contract signed by the Ministry of Interior with Continental Transfert Technique Limited (CONTEC) in 2007 on residence permit for expatriates.

The Comptroller General of the Nigeria Immigration Service (NIS), Mohammed Babandede had, during presentation at the session, said CONTEC, through the contract agreement, cornered a whopping N15 billion out of N20 billion realised in 2018 and N23 billion out of N40 billion realised in 2019.

He, however, said the Ministry of Justice was already looking at the modalities to pull out of the contract agreement. The company had increased the residence permit fee from $1,000 to $2,000.

Babandede also said the NIS was discussing with the Ministry of Justice for necessary advice on the legal implications of the upward review.

Adeola stressed the need for a more elaborate investigation on the issue with a view to tackling it.

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Finance

CBN to Refund Capital Deposits, Licensing Fees to BDC Promoters

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CBN to Refund Capital Deposits, Licensing Fees to BDC Promoters

The Central Bank of Nigeria (CBN) says it will commence the immediate refund of capital deposits and licensing fees to promoters who have pending Bureaux de Change (BDC) licence applications.

This was disclosed in a circular on Thursday, signed by Ibrahim Tukur, for director, financial policy and regulation department.

The CBN advised the affected BDC Promoters to forward their requests for the refund in writing to the director, financial policy and regulation department, CBN Abuja.

It further mandated all Deposit Money Banks (DMBs) to stop accepting instructions from customers to transfer a capital deposit of N35 million to the designated CBN account for the purpose of applying for BDC licences.

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Also, as part of efforts to ensure citizens have access to foreign exchange, the CBN has directed DMBs to set up teller points in designated branches for the sale of Foreign Exchange (forex) to Nigerians. Furthermore, DMBs are required to establish electronic application and alert systems to update customers on the status of their Forex requests.

The directive follows the decision by the CBN to discontinue dollar sales to the Bureau De Change over trading FX wholesale in contravention of their licences, and Nigeria’s FX regulations.

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Global Economy to grow by 6%, Nigeria at 2.5% – IMF

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Global Economy to grow by 6%, Nigeria at 2.5% – IMF

The International Monetary Fund retained its growth outlook for both Nigeria and the global economy for the year 2021, stating that the global economy is projected to grow 6.0 percent in 2021 and 4.9 percent in 2022, while Nigeria’s growth outlook has been maintained at 2.5% for the period.

The IMF disclosed this on Tuesday in its World Economic Outlook (WEO) for July titled “Fault Lines Widen in the Global Recovery.”

Prospects for emerging market and developing economies have been marked down for 2021, especially for Emerging Asia.
By contrast, the forecast for advanced economies is revised up,” it said.

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They also stated that “better global cooperation on vaccines could help prevent renewed waves of infection and the emergence of new variants, end the health crisis sooner than assumed, and allow for faster normalization of activity, particularly among emerging market and developing economies.

Moreover, a sooner-than-anticipated end to the health crisis could lead to a faster than-expected release of excess savings by households, higher confidence and more front-loaded investment spending by firms.”

For 2022, IMF says it forecasts Nigeria’s economy to grow by 2.6% and South Africa’s by 2.2%.

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IMF Retains Nigeria’s Growth Prospect at 2.5% Amid Slow Vaccinations

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IMF: Reinstatement of Fuel Subsidy Worries IMF

The International Monetary Fund (IMF)I in its July World Economic Outlook (WEO) Update released on Monday, has retained its projection for Nigeria’s economic growth prospect for this year at 2.5 per cent.

Nigeria’s projection is 0.9 percentage points lower than sub-Saharan Africa’s estimated growth of 3.4 percent. It is also far less than the six per cent global average growth estimate.

In the new document, the global institution marked down growth prospects of low-income developing countries (LIDCs) by 0.4 percentage points, citing slow rollout of vaccines as the main factor weighing on the recovery.

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“The overall fiscal deficit in 2021 was revised up by 0.3 percentage points from the April 2021 WEO, mainly because of the re-emergence of fuel subsidies as well as the additional COVID-19 and security-related support in Nigeria’’, it stated.

Still, at 5.2 per cent of gross domestic product (GDP), the overall fiscal deficit remains well below that of advanced and emerging market economies, reflecting financing constraints, adding that about 60 percent of LIDCs are assessed to be at high risk of or in debt distress,” the Fund said of Nigeria.

The IMF also estimated the country’s public debt-to-GDP ratio, which is currently at about 35 per cent, for 2021 at 48.5 per cent.

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