GRBusiness

GDP grows by 1.95% in Q1, non-oil sector accounts for 90.3%- NBS

Published

6 years ago

May 22, 2018

Though the nation’s Gross Domestic Product (GDP) grew by 1.95 per cent (year-on-year) in real terms in the first quarter of 2018, financial analysts have advocated easing of monetary policy for sustainability.

Data released by the National Bureau of Statistics (NBS), yesterday, showed a stronger growth when compared with the first quarter of 2017, which recorded a growth of -0.91 per cent, indicating an increase of 2.87 per cent points.

Compared to the preceding quarter, there was a decline of -0.16 per cent points from 2.11 per cent. Quarter on quarter, real GDP growth was -13.40 per cent.

Real growth of the oil sector was 14.77 per cent (year-on-year) in Q1 2018. This represents an increase of 30.37 per cent points, relative to rate recorded in the corresponding quarter of 2017, while the non-oil sector grew by 0.76 per cent in real terms during the period under review.

The non-oil sector was driven mainly by agriculture (crop production); other drivers were financial institutions and insurance, manufacturing, transportation and storage, information and communication.

In real terms, the non-oil sector contributed 90.39 per cent to the nation’s GDP, lower than 91.47 per cent recorded in the first quarter of 2017 and 92.65 per cent recorded in the fourth quarter of 2017.

According to the NBS, aggregate GDP for the first quarter stood at N28.4 trillion in nominal terms.

“This performance is higher when compared to the first quarter of 2017, which recorded a nominal GDP aggregate of N26.028 trillion, thus presenting a positive year-on-year nominal growth rate of 9.36 per cent. This rate of growth is however lower, relative to growth recorded in Q1 2017 by -7.70 per cent points at 17.06 per cent, but higher than the preceeding quarter by 2.14 per cent points at 7.22 per cent.”

Speaking on the data, the Chief Executive of Financial Derivatives Company Limited, Bismarck Rewane, said the growth notwithstanding, the economy needs stimulus from the budget that was recently passed, and low interest rate to aid the numbers.

He noted that the growth recorded was driven by the services sector, and that interest rate sensitive sectors, like manufacturing and agriculture, need to be complemented with monetary policies.He warned that it could take longer for the economy to recover if the Central Bank of Nigeria (CBN) retains key monetary policy rates, and called for a stimulus.

“The CBN is not in charge of fiscal policy. There is need to maintain price stability. The problem in the country has to do with unemployment, among others, even as growth slowed down in the critical sectors. The sectors that will deal with unemployment need to be stimulated. Vulnerability to shocks needs to be addressed,” he said.He added: “Issues that affect the everyday man need to be addressed. Election is not an issue if unemployment is reduced, as it would reduce dysfunctional behaviours in the society.”

For the Lagos Chamber of Commerce and Industry (LCCI), monetary policies should address access to funds and cost of funds for many domestic investors.According to the President, Babatunde Ruwase, “With commercial banks’ lending rate at between 20-35 per cent, depending on the borrower and other factors such as acceptability of collateral, it is very difficult for the private sector to successfully access fund, especially the SMEs.

“Investors in many sectors cannot finance projects profitably at an interest rate above 10 per cent. These sectors are majorly agriculture, real estate, solid minerals.”

Considering that yields on fixed income securities in the country have declined sharply in the last few months, despite the CBN retaining the Monetary Policy Rates, an Investment Analyst with Afrinvest, Omotola Abimbola, said there is need for deeper commitment by the Federal Government in implementing key fiscal policies.

Compared to the GDP figures in Q4 2017, Abimbola said the Q1 figures reflect a disappointing figure, as consumer confidence remains low.“For the equities market, a lesser than expected growth may have a negative sentiment on the market. However, foreign investor portfolio would help to address that sentiment. While it is appropriate to cut down on interest rates at this time, we expect the Monetary Policy Committee to retain rates at their meeting. The trigger for rates cut will be Foreign Direct Investments driving inflow in key sectors of the economy rather than in short term instruments,” said Abimbola.

Environmental Economist with the Federal University of Agriculture, Abeokuta (FUNAAB), Prof. Bola Okuneye, noted: “The increase in budgetary allocation is commendable, but the issue is if it will be retained. If under-spending is also addressed, the GDP contribution will increase. However, with the budget only recently passed, how much impact should we expect from it?

“Interventions in agriculture need to increase. The implementation of government policies is weak and people are not being encouraged. There are other policies that weaken the good policies that government initiates for the sector. We need more farms and also need to bring more people into the sector.”

Meanwhile, the International Monetary Fund (IMF) has advised Nigeria to increase its revenue to service its debt profile.The Senior Resident Representative and Mission Chief for Nigeria, African Department, IMF, Amine Mati, gave the advice, yesterday, at the public presentation of the Spring 2018 issue of the Sub-Saharan Africa Regional Economic Outlook (REO) in Lagos. (Source: Guardian.ng)

Finance

EFCC Chairman Tasks Nigerian Youths Against Crimes And Fraudulent Acts

Published

1 day ago

May 4, 2024

Alice Ginika Simon

The Chairman of Economic Finance Crime Commission (EFCC), Ola Olukoyede, has stressed the need for Nigerian Youth to see themselves as agents of positive change that have a lot to contribute to the socioeconomic development of the Nation.

Speaking at the 2nd edition of a Leadership Trainings Programme in Abuja, Olukoyede, who was represented by the Head Enlightenment and Re-orientation unit, (EFCC), Aisha Mohammed, said the commission’s dream is to see the youth contribute meaningfully to the society, emphasizing on the need to work together in bringing positive change to society.

The Economic and Financial Crimes Commission Boss declared the readiness of his agency to work with all Stakeholders, including the youth towards changing the narrative and reposition the country to greater exploit.
Also speaking, the representative of the Executive Secretary of Tertiary Education Trust Fund (TETFUND), Sonny Echono, appealed to the youths is to eschew social vices that could deter their full potential in life.

Other speakers at the event, including the Chairperson, Zero Tolerance for Social Immoralities Initiative (ZEITI) Africa, Rasak Jeje called on all stakeholders to join hands in collective pursuit of empowering new generation of leaders to curb the rising tides of social Vice among Nigerian youths.

The Chairperson, Zero Tolerance for Social Immoralities Initiative (ZEITI) Africa, Rasak Jeje made the call while addressing journalists at the 2nd edition of it Leadership Trainings Programme in Abuja on Thursday.
He said the training was aimed to intimate students leaders with knowledge and insights that will help them drive positive change and become exemplary leaders in their respective spheres.

Finance

AISA Has Refunded The Fees Paid By Yahaya Bello To EFCC

Published

1 week ago

April 27, 2024

Alice Ginika Simon

The Economic and Financial Crimes Commission (EFCC) says the American International School Abuja (AISA) has refunded the fees paid by the immediate past governor of Kogi state, Yahaya Bello, for his children attending the school.

In response to a letter addressed to the Lagos zonal commander of the EFCC, the school said $845,852 was paid in tuition “since the 7th of September 2021 to date”.

AISA said the sum to be refunded is $760,910 because it had deducted educational services already rendered.

“Please forward to us an official written request, with the authentic banking details of the EFCC, for the refund of the above-mentioned funds as previously indicated as part of your investigation into the alleged money laundering activities by the Bello family.

Since the 7th September 2021 to date, $845,852.84 (Eight Hundred and Forty-Five Thousand, Eight Hundred and Fifty Two US Dollars and eighty four cents) in tuition and other fees has been deposited into our Bank account.

We have calculated the net amount to be transferred and refunded to the State, after deducting the educational services rendered as $760,910.84. (Seven Hundred and Sixty Thousand, Nine Hundred and Ten US Dollars and Eighty Four cents).

No further additional fees are expected in respect of tuition as the students’ fees have now been settled until they graduate from ASIA.”

In a chat with The Cable, the spokesperson of the EFCC, Dele Oyewale, confirmed that the school has refunded the money.

‘’The money has been paid into public account,” Dele Oyewale was quoted as saying

Finance

Godwin Emefiele Disobeyed Direction Of Law With Intent To Harm The Public, He Printed ₦684.5M Using ₦18.9B Says EFCC in fresh charge

Published

2 weeks ago

April 23, 2024

Alice Ginika Simon

The Economic and Financial Crimes Commission has filed a fresh charge at the High Court of the Federal Capital Territory against the embattled former governor of the Central Bank of Nigeria, Godwin Emefiele.

EFCC in the charge accused Emefiele of approving the printing of N684,590,000 at the rate of N18.96 billion.

EFCC also alleged that Emefiele broke the law with intent to harm the public during his implementation of the naira swap policy of the administration of former President Muhammadu Buhari.

The anti-graft agency also accused Emefiele of unlawfully approving the withdrawal of N124.8 billion from the Consolidated Revenue Fund of the Federation.

EFCC’s top prosecutor, Rotimi Oyedepo, SAN revealed that Emefiele will be arraigned on a new four-count charge before Justice Hamza Muazu

Counts one to four of the charge, read,

“STATEMENT OF OFFENCE: Public Servant disobeying direction of law with intent to cause injury to the public contrary to and punishable under Section 123 of the Penal Code Law, Cap. 89 Laws of the Federation, 1990.

“PARTICULARS OF THE OFFENCE: That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of N375,520,000.00 pieces of colour swapped N1, 000, at the total cost of N11,052, 068,062 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

This and three other charges were stated against him. They read;

“COUNT 2: “That you, GODWIN IFEANYI EMEFIELE, between the 19th of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the Central Bank of Nigeria Act, 2007, by approving the printing of 172,000,000 pieces of colour swapped N500 (Five Hundred Naira) Notes, at the total cost of N4, 471,066,040 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.

“COUNT 3: “That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of 137,070,000 pieces of colour swapped N200 (Two Hundred Naira) Note, at the total cost of N3, 441, 005, 280 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

“COUNT 4: “That you, GODWIN IFEANYI EMEFIELE, on or about the 7th day of October 2020, in Abuja, within the jurisdiction of this Honorable Court, knowingly disobeyed the direction of Section 80 of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended), by approving the withdrawal of the total sum of N124, 860, 227, 865.16 from the Consolidated Revenue Fund of the Federation in a manner not prescribed by the National Assembly, which conduct of yours caused injury to the public and you thereby committed an offence.”