@Gbengabig

Thursday, 10 November 2016

Pres. Buhari launches economic recovery plan next month

President Muhammadu Buhari will next month
launch the National Economic Reconstruction and
Growth Plan that will guide the Federal Government
in repositioning the economy for sustainable
growth.
The Minister of Budget and National Planning,
Senator Udo Udoma, disclosed this on Thursday in
Abuja while speaking at a national economic retreat.
The retreat, according to him, was intended to
provide an opportunity for stakeholders from the
various sectors of the economy to consult and
exchange views on the medium term economic plan
for Nigeria.
The minister said the economic recovery plan would
be a detailed document that would bring together
various plans that had been put together by the
government’s Economic Management Team.
The documents are the Strategic Implementation
Plan from which the Medium Term Expenditure and
Fiscal Strategy Paper was developed, and the
Medium Term Sector Strategies.
Udoma said as soon as the consultations with
stakeholders in the private sector was concluded,
the EMT would be getting inputs from the National
Assembly and other development partners before
the launch of the final document by the President in
December.
He said, “The whole of the economic team has been
working very hard since we released the SIP. On the
basis of the SIP, we developed the MTEF. We also
developed the MTSS for large spending ministries.
Our intention now is to bring all these works
together as part of a comprehensive medium term
plan. As President Buhari has promised, this last
stage will involve extensive consultations.
“It is one of a number of consultations we will have
before we launch the plan. We shall hold
consultations with the states, our development
partners and the National Assembly. These
consultations will be concluded within the next one
month, because as promised by the President, this
medium term plan will be launched before the end
of this year.”
Udoma said the ministry had developed sectoral
plans in five thematic areas as part of the economic
recovery plan.
They include macroeconomic stability, where the
focus will be on the fiscal and monetary condition,
low inflation, stable exchange rate and strong
economic growth; and economic diversification and
building competitiveness in the private sector.
Others are job creation and social inclusion; and
governance issues such as security and human
capital development.
“We are emphasising jobs and social inclusion
because of the need.

Global markets: Oil rises, investors exuberant as Trump signals shift

Oil and European stocks rose on Thursday following Asia gains and
Wall Street poised for gains as exuberance affects markets and
reversed initial dives following Donald Trump’s victory.
Brent crude oil added to overnight gains made on the post-U.S.
election surge in global markets, rising 0.47 per cent to $46.60 a
barrel.
Investors focused on Trump’s priorities including tax cuts and higher
infrastructure and defence spending along with bank deregulation.
Financiers are set aside for the moment longer-term worries about
whether he will slap punitive tariffs on Chinese and Mexican exports,
risking a global trade war.
European stocks hit a two-week high, with the pan-European index up
1.3 per cent in early dealings before trimming gains to around 0.7 per
cent.
The “safe haven” government bonds sold off after Trump suggested he
would spend billions on infrastructure.
This marked an abrupt change from the sharp recoil on markets on
Wednesday after the Republican candidate’s triumph.
U.S. futures pointed to more gains when Wall Street opens, with the
S&P 500 Futures up about 0.6 per cent.
The dollar also jumped to its highest level in two weeks.
However, amid the optimism came a warning from PIMCO, the world’s
largest bond fund, that volatility is likely to be high in the immediate
future.
Generally, however, investors saw signs that Trump will ditch the
budget austerity policies that Western governments have pursued
since the 2008 global financial crisis after he takes over in January.
“Trump’s speech following the victory was hugely influential in
yesterday’s sudden U-turn, as he focused more on unity and the need
to spend to get the economy growing again.
“These policies combined with his desire to deregulate and lower taxes
are all very market-friendly,” said Craig Erlam, senior market analyst at
OANDA.
“The stance he takes on trade will likely determine how vulnerable the
markets are, but in reality these are very long-term policies.
“For now, markets are more focused on the prospect of lower taxes,
fiscal stimulus and less regulation.”
The three major U.S. stock indexes rose on Tuesday and the dollar
index against major currencies recovered from a trough of 95.885
plumbed on Wednesday to around 98.787 on Thursday.
Trump’s conciliatory tone boosted market expectations that the
Federal Reserve will raise U.S. interest rates in December and
supported dollar strength.
The euro hit a two-week low of 1.0890 dollars, near its lowest since
Oct. 28, and later was at 1.08810 dollars.
In a remarkable session for Japanese shares, the Nikkei jumped seven
per cent at one point after sinking five per cent on Wednesday.
High-rated euro zone bond yields rose sharply on Thursday, with the
region’s benchmark German 10-year bonds up 9 basis points to 0.27
per cent, the highest level since April.
Trump’s victory and opening comments have sharpened a debate
about the austerity consensus that has prevailed across most of the
developed world since the financial crisis.
If his actions match his rhetoric, it seems likely that many indications
would change.
Trump’s administration will test the theory of whether central banks’
cuts in interest rates to ultra-low levels and money printing should be
replaced by budget measures to boost the world economy.

Acting CJN vows to support Buhari's anti-graft war

The inauguration, which took place inside the Council Chambers of the Aso Rock Presidential Villa in Abuja, was sequel to the retirement of Justice Mahmud Mohammed at the attainment of the mandatory 70 years' retirement age.
Onnoghen is expected to act until the president forwards the name of substantive CJN to the Senate and is confirmed.
Shortly after inaugurating Onnoghen, President Buhari told him that he was taking over at a trying time for the country, charging him to play in constitutional role as expected.
The president said he was honoured to bid the immediate past CJN goodbye and to congratulate him for the time he spent "in the highly respected position."
"I congratulate the new acting CJN to come at a time that the institution that he is going to head, to play his role of the constitutional body after the executive and the legislature at this trying time for our nation. Trying time in the sense of the three identifiable problems this country is facing: physical security, the problem of economy and corruption.
"In this room contains the constitutional bodies that are responsible for the bringing Nigeria back to life in terms of security and managing it efficiently while making sure that the economy is resuscitated and that security of doing business at all stages in the country is free and fair," he stated.
The president wished the former CJN the best of luck in his retirement; and the acting CJN, "a successful tour of this vital constitutional body of our country."
In his remarks, Onnoghen described his inauguration as overwhelming and thanked God for making it possible.
He assured President Buhari of "the fullest cooperation of the third arm of government in the continuation of the war against corruption and misconduct in the judiciary."
He said while he intended to carry on from where his predecessors stopped; he would "modify certain areas with the general ultimate aim of having a better judiciary befitting the nation.
Onnoghen thanked the president for the confidence reposed in him, saying "by the grace of God, we shall succeed."

Judge rules against Donald Trump over university

US Federal judge, Gonzalo Curiel on Thursday in San Diego, California, largely sided with plaintiffs in the class-action lawsuit against President-elect Donald Trump over the defunct Trump University.
The case is scheduled to go to trial later this month and Trump is expected to testify in his own defence against allegations that Trump University for-profit business seminars were a hoax and hundreds of individuals were charged large sums of money for courses that were essentially worthless.
Curiel ruled against Trump’s legal team seeking to ban testimony relating to Trump’s conduct during the presidential campaign.
Curiel also ruled against Trump’s request to ban testimony about Trump University’s “F” rating by the Better Business Bureau and the fact that it has since gone bankrupt.
He also denied a request by Trump’s lawyers to ban discussion of the financial condition of students, many of whom described themselves as poor, and what impact the seminar fees had on their lives.
Trump’s lawyers argued testimony about the presidential campaign, and testimony about the other elements of the case are irrelevant and would serve to color the jury’s opinion of Trump and his business venture.
Curiel ruled in favor of allowing Trump’s defense team to call students who would tell “success stories” about how the courses improved their understanding of business and real estate.
Trump has steadfastly defended Trump University as a worthwhile investment for participants. The courses promised to offer students inside information on how he built his business.
In a technical ruling, Curiel found insufficient evidence or supporting case law to warrant granting Trump’s other requests, though he said Trump’s lawyers could object to individual pieces of testimony during the trial.
The trial is scheduled to begin Nov. 28.

Cash Inflow Into TSA Hits N 4.3trn

The Accountant General of the Federation Alhaji Ahmed Idris on Thursday said the Treasury Single Account (TSA) is a cash planning and management tool that has helped the country to reduce inflation rate, saying cash inflow into the account has hit N4.36 trillion.

Idris who revealed this at a workshop with the Theme,” Operation, Implementation and Challenges of Treasury Single Accounts” organized by Institute of Chartered Accounts of Nigeria (ICAN) in Lagos said the country lost a whooping sum of N70 billion to failed banks in 2011 when the country was not operating TSA system.

According to him, the N4.3 trillion cash went into 2,568 TSAs, saying in the past Ministries Department and Agencies (MDAs) ran more than 10,000 accounts that were mostly dormant with balances of tax payers money not utilized for the development of the country.

Idris represented by the Deputy Director TSA Collection Funds Department Mr. Sylva Okolieaboh added that TSA is not about revenue collection but rather a cash planning tools for the government to enhance cash planning.

He said, “Even if we detached, accountability transparency and anti- corruption from TSA it is still very important. That is not the reason why government started TSA. It is an anti corruption tool, no doubt but it is more than that . We are doing TSA because some times in 2011 and 2012 before that time the government of Nigeria working with International Monetary Fund (IMF) during Chief Olusegun Obasanjo first tenure, they carried out a broad financial reform looking at the country financial system and one of the things they asked us to do was to do a census of bank accounts, even though restricted to mainline government Ministries we found out that among the ministries that were based in Abuja then there were more than 10,000 bank accounts for about 30 ministries.

“It was not only the number that was the problem , the practice was that when new head of ministry , agencies come on board they will go and open new bank account based on personal interest , forgetting the previous accounts. When they open these new accounts and change signatories whatever balances in the previous accounts remain there. Even Central Bank of Nigeria was coming to us to draw our attention to the accounts, telling us to come and close them.

Idris said the huge sums of money that was being paid as interest on money borrowed from banks ad since been stopped.

Also speaking the President of Institute of Chartered Accounts of Nigeria (ICAN) Deacon Titus Soetan said the Treasury Single Account (TSA) which is an initiative of the Federal Government of Nigeria is a bold and highly commendable move directed at the mainstay of corruption in the polity.

Soetan said,” The implementation of the scheme would enable all Government Ministries, Departments and Agencies (MDAs) to remit all their revenue collections into a single account through commercial banks acting as agents. At the close of the day’s transactions, the banks are required to remit all the moneys collected to TSA at the CBN. This is a departure from the past, where government revenues are collected through several segmented channels given rise to leakages in the revenue collection chain.

“About 400 days since the commencement of the scheme, ICAN as an Institute whose interest is not limited to its members, but also to the public believes that now is the time to assess the working of the scheme so far to advise where appropriate areas of improvement in order to maximize its benefits.”

Only Six States in Nigeria are Viable, Says Access Bank's MD, Aig-Imoukhuede

The former Managing Director of Assess Bank, Mr. Aigboje Aig-Imoukhuede, has said only six states in the federation are viable, hence it is foolhardy for anyone to call for the creation of more states in the country.
Aig-Imoukhuede stated this at the 11th annual lecture of Aelex Legal Practitioners and Arbitrators held at the Muson Centre yesterday.
He said apart from Lagos, Kaduna, Kano, Oyo, Rivers and the Federal Capital Territory (FCT), all other states rely solely on the federal allocation to survive.
He said the situation of those state are compounded by the fact that even the revenues allocated to them are spent at the six viable states either by the government or by the people.
Also speaking in the same vein, the former Chairman of the National Human Rights Commission, Prof. Chidi Odinkalu, lamented that the type of federalism Nigeria operates does not make sense as states were created irrationally out of political exigencies instead of sound reasoning.
Earlier, the former Governor of Anambra State, Mr. Peter Obi, had lamented the level of wastage in governance in Nigeria.
He told the story where he was advised to build an airport as his legacy to the state. But cried that while the project would cost over N20billion to build, the airport would only be generating N100,000 monthly to the state coffer. He stated that he rejected the idea.
Obi also lamented the lack of planning in government, saying that when he took over, there was no document to guide him on the going on in government that he was forced to adopt the Millennium Development Goals (MDGs) as the state’s strategy for development.

Lagos to shut Ahmadu Bello Way for mega street party

The Lagos State Government will on 3 and 4 December, 2016 shutdown Ahmadu Bello Way, Victoria Island as it unveils plan to host the first ever The Lagos Street Party, TLSP, in the state.
The mega street party which would hold on Ahmadu Bello Way is expected to attract one million participants, with N500,000 fun lovers expected to attend each day.
The street party meant to flag-off the Yuletide period is being hosted by White Star in conjunction with the Lagos State Government.
At a news conference on Thursday in Ikeja, Lagos, Southwest Nigeria to unveil The Lagos Street Party, State Commissioner for Information and Strategy, Steve Ayorinde said 500,000 fun lovers were expected to attend the street party on each day.
He said the party was meant to kick-start series of festivities lined up for the yuletide season.
According to him, “not less than 500,000 people are expected at the event daily which will be holding from 12 mid-day to 12 midnight between December 3 and 4, 2016. Adequate security will be provided during the party.
“The street party will witness local and foreign visitors. It is not to kill other carnivals like One Lagos Fiesta but to complement them. The street party is in line with the initiative of Akinwunmi Ambode-led administration to use entertainment in driving the state economy.
The Commissioner explained that the TLSP would lead to the shutting down of the Ahmadu Bello Way which would play host to the mega party, adding that alternative routes would be created for motorists affected by the closure.
Representative of White Star, the entertainment outfit that partnered with the state on the project, Akin Akinyelure, said the street party would feature live music, diverse cuisine and creative indigenous games in a beautiful environment.
“The first day of the party will feature colourful cultural parades, displays, acrobatic acts and live performances by several Nigerian musicians, including Olamide, Phyno, MI and The Police band,” Akinyelure said.

PM/News