Tag: Nigerian Economy

Nigeria’s 96% revenue used on debt service in 2022 – World Bank

Aminu Imam

The World Bank says that Nigeria’s constant fiscal deficit has worsened the nation’s public debt stock, with 96.3 per cent of government revenue spent on servicing debt in 2022. The Bretton Woods institution disclosed this in its recent report: ‘Macro Poverty Outlook for Nigeria: April 2023 brief’. The report said, “The fiscal position deteriorated. In 2022, the cost of the petrol subsidy increased from 0.7 per cent to 2.3 per cent GDP. Low non-oil revenues and high-interest payments compounded fiscal pressures. The fiscal deficit was estimated at 5.0 percent of…

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“Nigeria’s economic growth is weak, needs more taxes”, says Finance Minister, Zainab

Aminu Imam

Nigeria’s economy may have been growing over the last seven quarters, but this growth rate is not strong enough to drive the needed developments in the country, and for this to happen, more people need to pay their taxes.  This was one of the views expressed by Zainab Ahmed, minister of finance during a plenary session at the on-going 28th Nigerian Economic Summit (NES28). These consecutive quarters of economic growth have not resulted in improved standards of living for the average Nigerian, as alluded to by the minister, who said…

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‘Buhari weak in managing Nigeria’s economy, governance’ – Report

Aminu Imam

Nigeria under President Muhammadu Buhari has performed poorly in governance, economic and political transformation, according to the Bertelsmann Transformation Index (BTI) 2022 Country Report. The BTI measures the development status and governance of political and economic transformation processes in developing and transition countries. Founded in 1977, the report is published biennially by Bertelsmann Stiftung, an independent establishment based in Gütersloh, Germany. More than 250 experts from leading academic institutions and civil society organisations worldwide assessed 137 nations. According to the 31-page report, Nigeria is 108th overall: 86th spot for political…

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Economic Disaster: ‘Nigeria faces disaster over escalation of oil theft’ – Kyari

Aminu Imam

The Federal Government yesterday raised the alarm that the country is on the brink of an economic disaster following indiscriminate oil theft, pipeline vandalism in the Niger Delta areas, with attendant low oil production. The Chief Executive Officer (CEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, raised the alarm when he appeared before the Senate’s joint committees on Petroleum (Downstream), Petroleum (Upstream) and Gas. Answering questions on the state of the upstream and downstream sectors of the oil sector, Kyari also revealed that contrary to speculations, Nigeria…

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“We’ve played critical role in rescuing nation’s economy from total collapse, insecurity, corruption” – AGF Malami

Aminu Imam

The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, (SAN), has said that his ministry has played a critical role in rescuing the nation’s economy from total collapse. The Minister stated this at the opening ceremony of a retreat organised for the top management of the Federal Ministry of Justice with the theme: “Enhancing systems and structures in the Federal Ministry of Justice for effective service delivery”, which was held in Kano. Besides, he said the ministry has also aided the fight against the twin malaise…

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Nigerian economy shrinks by N63bn; 28 sectors struggling - NBS

Aminu Imam

No fewer than 28 sectors of the economy declined in the second quarter of 2022 as real Gross Domestic Product (GDP) shrunk by N63.49billion quarter-on-quarter, the National Bureau of Statistics, (NBS), data has revealed. According to data from the Bureau, while real GDP grew by 3.54% year-on-year in Q2 2022, it declined by 0.37%, from the N17.35 trillion that was recorded in the first quarter of 2021 to N17.29 trillion in Q2, 2022. The NBS blamed this decline on lower economic activity that was witnessed in the country in Q-1…

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Fiscal crisis: Nigeria bleeds while Middle-Eastern oil producers reap $1.3tr price windfall – Report

Aminu Imam

For many Nigerians and their beleaguered out-going government, these are not happy times. At a time when oil-rich Middle Eastern countries are basking in an unprecedented oil windfall in excess of $1.3trn according to the International Monetary Fund, (IMF), Nigeria, Africa’s top oil producer, is bleeding at a frightening pace.  An IMF director for the Middle-East and North Africa, Jihad Azour, told The Financial Times yesterday that relative to expectations before the war in Ukraine, Middle-East oil and gas exporters, particularly the Gulf States, “will see additional cumulative oil revenues…

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Looming Economic Crisis: ‘Tax the rich, increase salaries by 50%’ – NLC writes to Buhari

Aminu Imam

The Nigerian Labour Congress (NLC) has called on the federal government to raise taxes across the board for the ‘rich’ and ensure that governors above 50 years resign. The recommendations were made by the union via a letter signed by NLC’s president, Ayuba Wabba, and sent to President Muhammadu Buhari. The letter, dated August 8th, was in response to recommendations made by Nigerian governors in July.  As part of the recommendations, the governors had asked the FG to raise VAT to 15% as well as offer public workers older than…

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Nigeria’s dire fiscal state to worsen without subsidy removal – Budget Office

Aminu Imam

President Muhammadu Buhari’s administration has said it must cut petrol subsidies and boost revenue collection in order to avoid a sharp deterioration in government finances next year, according to the Budget Office. According to a Bloomberg report, if the President does not heed, Nigeria’s budget deficit could rise to N12.4 trillion, or $29 billion next year — almost three times its total revenue, or 5.5% of gross domestic product, reports. The bleak prognosis associated with the insistence to continue paying fuel subsidies is the highlight of a medium-term expenditure framework…

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NESG laments state of Nigerian economy; describes ASUU strike as national embarrassment

Aminu Imam

The Nigerian Economic Summit Group (NESG) has lamented that Nigeria is currently stuck in an economic morass, as most macro-economic indicators are spiralling out of control, inflicting severe hardship on more Nigerians. A communiqué issued yesterday by the NESG Chairman, Asue Ighodalo, on behalf of its Board of Directors, explained that even though the economy continued to recover in the first half of the year, economic growth was dominated by sectors with low contributions to output and weak job-creating capacity, while the oil sector remained in recession for eight consecutive…

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