Economy
FG requests $6.9bn from IMF, World Bank to fund covid-19 fight, Buhari approves N500bn crisis intervention fund
Federal Government has requested $6.9 billion from World Bank, International Monetary Fund and Africa Development Bank to combat the social economic impact of the coronavirus pandemic on the economy, the finance minister Zainab Ahmed said. The federal government Ahmed said at a press briefing in Abuja has asked for $3.4 billion from the International Monetary Fund, $2.5 billion from the World Bank and $1 billion from the African Development Bank (AfDB). A two-week lockdown was imposed last week on Lagos state, home to the nation’s sprawling commercial hub, as well as neighbouring Ogun state and the capital territory of Abuja, in an effort to prevent the virus spreading across the country.
Meanwhile the minister said that the President has approved a N500billion covid-19 intervention fund. She said “Mr. President has approved the establishment of a-N500 billion COVID-19 Crisis Intervention Fund. The establishment of the Fund will involve drawing much-needed cash resources from various Special Funds and Accounts, in consultation with and with the approval of the National Assembly. The N500 billion is proposed to be utilised to upgrade healthcare facilities as earlier identified by the Presidential Task Force on COVID-19 and approved by Mr. President. “This will help to finance the Federal Government’s Interventions to support states in improving healthcare facilities, finance the creation of a Special Public Works programme and Fund any additional interventions that may be approved by Mr. President”. The minister noted that although similar challenges were experienced in 2008/2009 as well as in 2015/2016, Nigeria had considerably lower fiscal buffers now than in previous economic downturns.
According to her, the decline in international oil prices and domestic production may be magnified if a severe outbreak of COVID-19 occurs, despite ongoing efforts to curtail the spread of the pandemic through compulsory lockdown of Lagos and Ogun States, as well as the FCT. The minister said to directly address these health and economic challenges, the president approved the Fiscal Stimulus Package among others as part of an Integrated Policy Framework to ensure that Nigeria’s healthcare system, fiscal position and economy were sufficiently supported to weather these shocks. The minister told a news conference in Abuja that Nigeria was one of several African states seeking the suspension of debt-servicing obligations for 2020 and 2021 from multilateral lenders. The requests are part of a wider debate over debt relief. But analysts say securing such relief will be a challenge as it requires winning approval from a disparate array of creditors. The IMF, which has received requests for help from about 80 nations including 20 in Africa, is making about $50 billion available from its emergency financing facilities to help countries cope with the crisis. The World Bank has approved a $14 billion response package. Nigeria’s finance minister said IMF support would not be tied to a formal programme and the funds would not have conditions attached because the cash was being borrowed previous Nigerian contributions to the Fund.
“It is important to clarify that Nigeria does not intend to negotiate or enter into a formal programme with the International Monetary Fund, at this time, or in the foreseeable future,” Ahmed added.
The government said last month that spending in the $34.6 billion budget for 2020 would have to be cut by around $4.9 billion due to low oil prices and the impact of the pandemic, which has driven down global demand for fuel. The minister said the budget would assume an oil price of $30 a barrel, down from $57, and production of 1.7 million barrels per day (bpd) rather than 2.1 million bpd. “The emerging health and economic risks resulting from the COVID-19 pandemic and decline in international oil prices pose existential threats to Nigeria’s economy, healthcare system, national security, as well as the lives of our citizens,” she said.
Nigeria, where economic growth had been about 2%, is still struggling to shake off a 2016 recession caused by a previous slide in oil prices to below $30 a barrel. In the latest crisis, oil prices plunged to a nearly two-decade low of close to $20. Fitch on Monday pushed Nigeria’s debt rating deeper into “junk” territory, rating it a “B” and saying it expected the virus pandemic to drive the economy back into recession. It forecast the economy would contract 1% in 2020. Ahmed said the government had provided 102.5 billion naira($285 million) to support the healthcare sector, of which 6.5 billion naira had already been made available as critical expenditure for the Nigeria Centre for Disease Control. Lagos state, where most confirmed cases of the virus in the country have been identified, had received 10 billion naira in emergency funding, the minister said. The government said on Saturday it planned to create a coronavirus fund to strengthen its healthcare infrastructure. Ahmed said on Monday the president had approved the fund and said backing from lawmakers was being sought to borrow the money from special accounts. According to Ahmed President Muhammadu Buhari has approved the engagement of 774, 000 Nigerians on Special Public Works programme in the country to cushion the effect of COVID-19 pandemic. Mrs Ahmed disclosed this at a press conference on fiscal stimulus measures in response to COVID-19 pandemic and oil prices fiscal shock, on Monday in Abuja. She said that 1, 000 people were expected to be recruited from each of the 774 local government areas in the country.
According to her, the sum of N60 billion for allowances and operational cost has been earmarked from the COVID-19 crisis intervention fund for the initiative. She disclosed that President Buhari had previously approved a pilot special public works programme in eight states to be implemented by the National Directorate of Employment, NDE. She added that Buhari had now approved that this programme be extended to all 36 States and the FCT from October to December 2020 and the selected time-frame was to ensure that it was implemented after the planting season. “The Federal Ministry of Finance, Budget and National Planning is also evaluating how best to extend the Special Public Works Programme, to provide modest stipends for itinerant workers to undertake Roads Rehabilitation and Social Housing Construction. Ahmed said: “And also Urban and Rural Sanitation, Health Extension and other critical services. This intervention will be undertaken in conjunction with the key federal ministries responsible for Agriculture, Environment, Health and Infrastructure, as well as the states, to financially empower individuals who lose their jobs due to the economic crisis.
Economy
Bayelsa bans illegal mining activities
Bayelsa State government has placed an outright ban on all unauthorized and illegal mining of mineral resources in communities across the state.
It also issued a stern warning to community leaders who had been reportedly signing memoranda of understanding with illegal miners in their domains to stop forthwith or face sanctions, declaring such agreements already entered into as null and void and of no effect.
Governor Douye Diri made the declarations, on Monday, during a town hall meeting with community leaders, top government officials and other critical stakeholders from Southern Ijaw, Brass and Ekeremor Local Government Areas of the state in Yenagoa.
Diri, who was represented by his Deputy, Senator Lawrence Ewhrudjakpo, described the illegal mining of “black sand” also known as silicon at Foropa, Agge, Die-ama, and other coastal communities in the state by miners from outside as a dangerous threat to the safety of the Bayelsa environment and health of the people.
While directing the immediate suspension of all such mining activities in all parts of the state, the governor pronounced an embargo on communities from signing memoranda of understanding (MoUs) with companies, without consulting with government, to mine minerals in their areas.
His words, “The state has recently witnessed a dimension we are not comfortable with. There is a developing issue in Ekeremor, Brass and Southern Ijaw LGAs. People from outside the state are illegally mining silicon or black sand in our community, without the authorization of government, and that has to stop forthwith.
“It is both dangerous to the safety of our environment and health. Unchecked Illegal mining activities in the north contributed to the banditry that has engulfed several states in the north. We won’t allow that here.
“We learn some communities have gone ahead to sign MoUs with these illegal miners. Government is angry with those communities for signing agreements with miners without consulting the relevant government institutions and agencies.
“Government is, therefore, directing the immediate suspension of all such illegal silicon or black sand mining activities across the state.
“An embargo is hereby placed on MoUs between communities and companies from within or outside the state. And every MoU already signed without government approval is hereby declared invalid and of no effect.”
He pointed out that while his administration is creating the enabling environment to attract both foreign and local investors, it would not tolerate any business to undermine the security and safety of the people and their environment.
He warned that paramount leaders and other community leaders who violate the order would be arrested and prosecuted in line with relevant laws of the state, stressing that illegal mining does not only violate environmental impact assessment laws, but also poses a serious security threat and robs the state of legitimate revenues.
In his submission, the Commissioner for Environment, Hon. Ebi Ben-Ololo, stressed the need for communities to obey an extant law passed by the Bayelsa State House of Assembly, which regulates and outlines the procedure for carrying out mining activities with necessary government authorization.
Economy
Miners kick against northern governors’ proposed ban on mining activities
The Miners Association of Nigeria says banning mining activities in the country is not the solution to the country’s security challenges.
The association said this in a statement jointly signed by its national president, Dele Ayankale, and its national secretary, Sulaiman Liman, on Monday. The Northern States Governors’ Forum recently called for the suspension of mining activities for six months following the abduction of school children and killings in some states.
They identified illegal mining as a key driver of insecurity and stated that the suspension would allow for a comprehensive audit and revalidation of all mining licences in consultation with state governments. Nonetheless, MAN said that only illegal mining had been linked to fueling terrorism and other security challenges, not legal operations, and decried that the ban would hurt legal miners while giving room to illegal operations.
Mr Ayankale argued that previous bans on mining, as a strategy to curb insecurity, had not yielded positive outcomes, as seen in the 2019 ban on mining activities in Zamfara, saying the negatives outweigh the positives. He said, instead, banditry, kidnappings, and terrorism escalated in the state and extended to neighbouring states of Katsina, Kaduna, Niger, and Kebbi, among others.
“It is the disorderly, illegal mining that is conducted without licences and government regulations and control that practices money laundering and fuels insecurity. A clear distinction must be made between legal and illegal mining. Therefore, stigmatising mining as the cause of insecurity is a misnomer,“ he explained.
He stressed that the ban would be unjust and a serious disservice to legal miners and their employees, leading to mass unemployment, worsening multidimensional poverty, and insecurity. The victims of such bans, he said, were usually legitimate stakeholders, as illegal miners mostly linked with terrorists would still have access to mineral resources due to the government`s poor logistics and personnel to enforce compliance.
“Unfettered access of illegal miners to the mineral resources in a banned mining location offers incentives and empowerment to criminals as they exchange the minerals for arms and ammunition to improve their heinous activities, “ he said. The ban, he further explained, would undermine the Federal Government’s progress in attracting investment to the solid minerals sector, especially its initiatives aimed at removing bottlenecks and enhancing the sector’s visibility in global markets.
Mr Ayankale said that his members work in synergy with security agencies to maintain safety in their areas of operation, and that their activities follow standard procedures for responsible, environmentally friendly mining.
According to him, MAN’s members, through the implementation of the statutory Community Development Agreement, contribute significantly to infrastructure development in rural areas and to boosting the economy.
“Therefore, the call by our northern governors and elders to ban mining activities, at a time when the nation has started welcoming pockets of investments, is not only unfortunate, but highly unpatriotic,“ Mr Ayankale added.
He said the governors should use part of their security votes or create special funds to strengthen the operations of the Mining Marshals and other legal initiatives to address illegal mining.
According to him, the call for revalidation of mining licenses is akin to an agitation for resource control. Mr Ayankale added that it was fundamentally against the letter and spirit of the Constitution, which places the control and management of mineral resources on the Exclusive Legislative List. He urged the president to consider that the ban could create more recruits for terrorist activities. NAN
Economy
Nigeria champions African-Arab trade to boost agribusiness, industrial growth
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
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