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Tag: Wale Edun

  • Fed Govt launches Real Estate Fund for mortgage financing

    Fed Govt launches Real Estate Fund for mortgage financing

    The Federal Government has taken a step toward addressing the country’s housing deficit by launching the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF).

    This initiative is set to revolutionize the housing sector by providing low-cost mortgage financing options for eligible Nigerians.

    The MREIF serves as a key component of the One Million Homes Presidential Initiative, marking an important milestone in the government’s efforts to make affordable homeownership a reality for millions of citizens.

    A statement from the federal ministry of finance said a high-level meeting was convened to discuss the MREIF.

    At the meeting, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, highlighted the transformative potential of the fund and emphasized the MREIF’s ability to offer cost-effective mortgage options to a broad section of the population, especially pension account holders.

    He noted that the initiative aligns with the government’s vision of providing accessible housing solutions through the One Million Homes programme.

     “The launch of this fund represents a major stride in delivering affordable homes to Nigerians. With the support of the pension and financial sectors, we are confident that this initiative will transform the housing landscape and create significant opportunities for homeownership,” said Mr. Edun.

    The MREIF will operate within a market-driven framework, ensuring that all regulatory standards are adhered to while promoting broad accessibility. Dr. Armstrong Ume Takang, the CEO of the Ministry of Finance Incorporated (MOFI), reiterated the importance of regulatory compliance and market efficiency. He stressed that the fund would be managed transparently, with the interests of future homeowners at the forefront of its operations.

    Read Also: FG launches real estate fund for affordable mortgage financing

    Dr. Takang further explained that  “the MREIF is designed not only to boost housing access but also to strengthen the mortgage market, creating a viable and sustainable pathway for homeownership across Nigeria.”

    To ensure the successful implementation of the MREIF, the federal government has engaged prominent leaders from the pension and financial sectors. These stakeholders include: Dr. Oluwatoyin Maiden, Accountant General of the Federation; Wale Odutola,  ARM Pensions; Funmi Ekundayo, CEO, STC Trustees; Sani Yakubu, Co-Coordinator, MREIF; Temitayo Ajayi, Vetiva Advisory; Saadu Jijji, Managing Director, PAL Pensions.

    Others are Tony Odutola, Deputy Chief Investment Officer, FCMB Pensions LTD; Nuhu Modibbo, Executive Director, Access Pensions; Victor Bisong, Managing Director/CEO, Trustfund Pensions; Emmanuel Thomas, Executive Director, NUPEMCO; Oluwakemi Ugwu, Managing Director/CEO, NUPEMCO and Christopher Bajowa, Managing Director/CEO, Access Pensions.

    These experts, representing key institutions, are set to play a pivotal role in shaping the structure and deployment of the MREIF. Their combined experience in pension fund management, investment advisory, and real estate financing will provide the necessary expertise to ensure the fund’s success.

    By offering affordable financing solutions, the initiative will address the existing barriers that prevent many Nigerians from owning their homes. For pension account holders, in particular, the fund offers an innovative means to secure mortgage loans at reduced interest rates.

  • Edun: VAT remains 7.5%

    Edun: VAT remains 7.5%

    • No tax on basic goods, services

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said yesterday that the government had no plan to increase Value Added Tax (VAT).

    He said government would rather focus on sustainable economic policies that impose no further burdens on the citizen.

    The minister refuted claims in some quarters that there is a potential hike in VAT from 7.5 per cent to 10 per cent, assuring that no such tax increment is under consideration.

    Edun said President Bola Tinubu remained committed to fiscal stability and sustainable economic policies that will not impose further burdens on citizens.

    The minister reiterated that Nigerians will pay no tax on basic goods and services, including food, rent, transportation, healthcare and education,  under the ongoing tax reforms by the Federal Government.

    He added that all essential households’ consumptions and businesses will be exempted from VAT.

    Edun’s clarifications came as the latest report by the NBS showed that government was becoming more efficient in tax collections, with increases in VAT collections and Company Income Tax (CIT), even at current rates.

    The NBS stated that VAT collection rose by 9.11 per cent to N1.56 trillion in second quarter of 2024 from N1.43 trillion in first quarter of 2024.

     However, compared to second quarter of 2023, the second quarter of 2024 VAT collections represented an increase of 99.82 per cent.

    In another report titled: “Company Income Tax (CIT) Second Quarter 2024”, the NBS reported that aggregate CIT rose by 150.83 per cent to N2.47 trillion in the second quarter of this year from N984.61 billion in first quarter.

    Compared to the second quarter of 2023, CIT collections in second quarter of 2024 increased by 59.52 per cent from N1.55 trillion recorded in comparable quarter in 2023.

    Edun said: “The current VAT rate is 7.5 per cent, and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.”

    This statement is seen as a direct response to media reports suggesting that government was preparing to increase VAT as part of its economic recovery strategy.

    Edun noted that the misinformation had created unnecessary panic.

    Read Also: VAT remains 7.5% – Wale Edun

    He reiterated the administration’s commitment to using fiscal policy to achieve robust and sustainable economic growth, reduce poverty, and foster an enabling environment for businesses to flourish.

    The minister underscored the importance of a balanced and stable tax system for Nigeria’s fiscal health, stressing that tax policy, tax laws, and tax administration must work in harmony.

    Edun stressed: “The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.”

    Contrary to the rumour that government wanted to impose more financial hardships on Nigerians, Edun highlighted relief measures taken by the administration to mitigate the impact of inflation and rising food prices.

    He said the recent suspension of import duties for essential commodities, including rice, wheat, and beans, were part of  government’s efforts to ease economic pressure on both businesses and consumers.

    He added: “It is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items.”

    The minister said these policies were designed, not only stabilise the economy, but also to ensure food security by making staple goods more affordable for the average Nigerian.

    Edun urged Nigerians to disregard unverified reports, assuring the public that any tax reforms or adjustments would be communicated through official government channels.

    He emphasised the importance of relying on accurate information to prevent misinformation and unnecessary anxiety among the public.

    Edun said: “The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians.

    “That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.”

    The minister said the Ministry of Finance remained committed to transparent communication on all tax and economic policies to keep citizens well-informed and to avoid any confusion about government’s fiscal decisions.

    The Chairman of Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, explained that the VAT regime was designed to significantly reduce the financial burden on average households, while ensuring that government revenue remains stable through adjustments on non-essential goods and services.

    Under the proposal, the VAT rate for food, education and healthcare will be reduced to zero per cent, offering immediate financial relief to households.

    Also, rent, transportation, and small businesses will be exempted from VAT.

    Oyedele said: “Data by the NBS shows that these are the areas where the average household spends almost all their income, meaning their VAT burden will reduce.”

    He said these changes were meant to  ease financial strain on the masses, especially those in lower-income brackets.

    The proposed reforms also include provisions for businesses.

    Oyedele said businesses would claim full credit for the VAT they pay on their assets and services.

    He said the move would reduce overall costs for businesses, fostering a more conducive environment for investment and growth.

    Oyedele added: “Businesses will also get full credit for the VAT they pay on their assets and services, thereby lowering their overall costs and moderating inflation.”

    By reducing costs for businesses, the proposal aims to curb inflationary pressures, ensuring that price increases are kept in check even as the broader economy adjusts to the new tax framework.

    One of the most significant aspects of the proposed VAT regime is its focus on small and medium-sized enterprises (SMEs).

    According to Oyedele, over 97 per cent of SMEs will be exempted from charging VAT on their sales, reducing the administrative burden and encouraging business growth in the sector. This is expected to have a far-reaching impact on job creation and economic development, as SMEs form the backbone of Nigeria’s economy.

    Also, the reforms aim at streamlining VAT refunds, ensuring faster processing without the need for extensive tax audits. This will improve cash flows for businesses, making it easier for them to invest in operations and expansion.

    The committee’s proposal also seeks to make the distribution of VAT revenue among states more equitable. This change is intended to address long-standing concerns about the fairness of VAT allocations, ensuring that all states benefit from the revenue generated, irrespective of their economic strength or size.

    Oyedele said VAT be the only consumption tax charged by the government, simplifying the tax system and improving compliance across sectors. This would involve discontinuing other consumption taxes and charging VAT where applicable.

    Another key aspect of the proposed reforms is the focus on export growth. Oyedele said the export of services and intellectual properties would attract a zero per cent  VAT rate, encouraging businesses to expand into foreign markets and contribute to Nigeria’s export earnings.

    The reduction of VAT on exports is expected to make Nigerian services and intellectual property more competitive on the global stage, facilitating trade and driving economic growth.

    However, to offset the revenue loss from reducing VAT on essential goods, there is a proposal for an upward adjustment of VAT on non-essential items. This strategy ensures that the financial relief extended to households does not create a significant shortfall in government revenue.

    The proposed reforms are now awaiting further deliberation and undergoing law-making processes.

    Oyedele noted that the increase in VAT on non-essential goods would help maintain fiscal stability while protecting the purchasing power of ordinary citizens.

    He added:  “The upward rate adjustment is on non-essential items to partly offset the impact of the reduction in rate and exemption for essential items, ensuring that the masses are protected, and providing some cushion for states who earn 85 per cent of VAT revenue.”

    By focusing VAT increases on non-essential items, the proposal seeks to balance public welfare with fiscal responsibility, allowing state governments, which rely heavily on VAT collections, to continue receiving their due revenue.

    In its VAT report for the second quarter of 2024, NBS indicated that local payments were N792.58 billion, foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in second quarter 2024.

    According to NBS, on a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44 per cent, followed by agriculture, forestry and fishing with 70.26 per cent, and water supply, sewerage, waste management and remediation activities with 59.75 per cent.

    On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84 per cent, followed by real estate activities with –42.59 per cent. In terms of sectoral contributions, the top three largest shares in second quarter 2024 were manufacturing with 11.78 per cent; information and communication with 9.02 per cent; and mining and quarrying with 8.79 per cent.

    The report added that nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 per cent, followed by activities of extraterritorial organizations and bodies with 0.01 per cent; and water supply, sewerage, waste management and remediation activities with and real estate services 0.04 per cent each.

    CIT breakdown indicated that local payments were N1.35 trillion, while foreign CIT payment contributed N1.12 trillion in second quarter 2024.

    On a quarter-on-quarter basis, NBS said agriculture, forestry and fishing recorded the highest growth rate with 474.50 per cent, followed by financial and insurance activities and manufacturing with 429.76 per cent and 414.15 per cent respectively.

    NBS stated that  activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –30.22 per cent followed by activities of extraterritorial organizations and bodies with –15.67 per cent.

    NBS said in terms of sectoral contributions, the top three largest shares in second quarter 2024 were financial and insurance activities with 15.53 per cent; manufacturing with 8.99 per cent; and Information and communication with 7.84 per cent.

    The report said nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00 per cent, followed by water supply, sewerage, waste management, and remediation activities with 0.02 per cent and activities of extraterritorial organizations and bodies with 0.03 per cent.

  • VAT remains 7.5% – Wale Edun

    VAT remains 7.5% – Wale Edun

    The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Monday, debunked claims that the rate for Value-Added Tax (VAT) has been upwardly adjusted to 10 per cent from 7.5 per cent.

    In a statement on Monday, Edun clarified that the current VAT rate, as stipulated in the country’s tax laws, remains at 7.5 percent.

    He said: “The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. 

    “Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

    Read Also: Can Wale Edun, Yemi Cardoso, Taiwo Oyedele save the Nigerian economy?

    “The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.

    “Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth reduces poverty as well as makes businesses flourish.

    “The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

    “In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

    “For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” Edun said.

  • Can Wale Edun, Yemi Cardoso, Taiwo Oyedele save the Nigerian economy?

    Can Wale Edun, Yemi Cardoso, Taiwo Oyedele save the Nigerian economy?

    By Opeoluwa Dapo-Thomas

    During the Asian Financial Crisis of 1997-1998, South Korea faced severe economic hardship, which led to a national crisis. In a remarkable display of collective sacrifice and patriotism, many South Koreans donated their personal gold items such as jewelry and family heirlooms to help the country repay its debts and stabilise the economy. This effort raised billions of dollars and played a crucial role in the nation’s recovery. Some South Koreans took voluntary wage cuts, unpaid leave or reduced working hours to help companies stay afloat during this economic downturn.

    Would Nigerians do the same for Nigeria during these tumultuous times? Simple answer is No. The political class and elite have failed in exuding fiscal prudence which has led to a vote of no confidence demonstrated through the August protests.

    Erstwhile Presidents Dr. Goodluck Jonathan said he had no pair of shoes growing up, Muhammadu Buhari said he lived in a mud house in Daura, Labour Party Presidential candidate in the April 2023 elections Peter Obi said he has only owned one watch in 17 years. Former British Prime Minister Rishi Sunak said his family couldn’t afford the “luxury” of cable television when he was a child, while the current British Prime Minister Keir Starmer said he would rather queue on the NHS waiting list than take a loved one for surgery in a private hospital. Politicians tend to always participate in poverty Olympics when pandering to their electorate. But when asked about the source of his wealth in a BBC interview in 2022, President Bola Ahmed Tinubu likened himself to Warren Buffet – saying “his investments have yielded great value and he will not deny his wealth”. Just as he owned up to his affluence, he needs to understand that the government’s out of touch optics may not buy him the time for his reforms to yield similar ‘dividends’ on the lives of Nigerians.

    During the course of the election, the President said he was going to hit the ground running – which he did. On the first day he announced the discontinuation of petroleum subsidies. Months later, the federal government devalued the currency seeking to find a convergence between the official and the black market. He then went on to appoint the Fiscal policy partner and African tax leader from PWC, Taiwo Oyedele as the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. After embarking on trips seeking to attract capital from the New York stock exchange, the UAE and India, whilst exploring gas trade deals with the German government – market participants and economists saw his vision. The President wanted to kickstart an economic revival on the pillars of oil and gas, FX inflows and a simplified taxation system.

    After one year, how has that worked out?

    Nigeria has not grown its wealth in almost two decades. It has stagnated and while the cushions of subsidies and interventions protected the citizens from its reality, it was only a matter of time the smokescreen would dissipate.

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    One year ago, the general assumption from economic experts, was that the reforms would be the catalyst for a more liquid financial economy which would provide a solid base for wealth creation and prosperity for Nigerians. By removing fuel subsidy and deploying oil earnings into infrastructure, education and health, human capital development which is usually the prerequisite for economic growth would be prioritised. However, when you look at the macros, revenue generation capacity, alongside Nigeria’s debt obligations and FX liabilities, the last six months has painted a different picture on the objective of the reforms. If you were driving a fuel tanker with brake failure on a highway, the most recommended option every responsible driver would take would be to drive towards a pavement either side of the road to avert a major accident ahead. The reform the current administration has embarked on is the equivalent of driving towards a pavement to avoid a much larger economic crisis that would make Argentina and Venezuela empathetic towards the West African giant. The reason for the discrepancy of reform expectations lies in the value of the dollar. The government assumed the fair value of the dollar was N750/N800, but the structure of Nigeria’s import-dependent dollar-demanding economy means N1500 is more of its fair value.

    One thing people tend to underestimate is that there is no bottom for how low an economy can decline. The economy is not like a stock, it’s like a derivative contract – you have to set your limit when the trend has gone against you.

    The boomer Nigerian generation has spent pounds as an official currency, and they have witnessed the naira trade equally to the dollar. They’ve also seen the naira depreciate and stabilise at N150 to a $1. They’ve experienced it at Godwin Emefiele’s artificial and pegged N400 and they are experiencing it at Cardoso’s liberated N1,500 region. Something had to change, or else Nigerians would get nostalgic of today’s rates when the dollar trades at N5,000.

    What would Nigerians consider as success for this administration?

    There seems to be two sides of the divide. Some Nigerians would view success as “fuel at 200 naira, the dollar trading at N450, a bag of imported rice at N15, 000” etc. Other Nigerians would view progress as a stable currency, an enabling business environment that would create jobs where rice and locally refined fuel is affordable for all. The former scenario as we have seen is unsustainable and costs the country billions of dollars that unfortunately does not exist anymore. The latter scenario is how most countries are run.

    But there are questions on how the government intends to turn around the corner. The fuel tanker is stuck at the pavement now, so how does the FG kickstart the engine? Does the government still believe the dividends of the reforms would still yield prosperity or are they open to the unpalatable possibility that the reforms were not meant to yield anything but just to cut the country’s losses?

    These are questions the Minister of Finance who doubles as the Coordinating Minister of the Economy would have to answer. As a first time Minister, Mr. Wale Edun would presumably have spent the first few months taking stock of his own MDAs and other ministries while having sleepless nights over the country’s debt to revenue ratio, and coordinating the economy to respond to the reforms his new government has delivered. He would juggle the aforementioned with seeking different avenues of revenue to fund the country’s needs as well as responding to the unintended consequences of everything not panning out as designed. Uneasy lies the head that wears the crown for the President’s most trusted ally. How does he build the economy from brick to brick? Where does the country start from? What does Nigeria have going for itself that it can use as a springboard? Is it time to reposition NNPC in a way that better serves the country and not individual interests?

    The Central Bank governor, Olayemi Cardoso seems to have steadied his own ship. There has been an empirical rise in FX inflows as he battles to fix a broken FX management system. Convergence of the different exchange rates looks more likely to be achieved although it has come at a cost that has decimated the purchasing power of Nigerians. But there is a much bigger battle in inflation. The United States Federal Reserve chairmain Jerome Powell would have some sympathy for him. Would his successive interest rate hikes have the desired effect on Nigeria’s sticky inflation? Some quarters suggest high rates have stifled the lending environment for businesses thereby increasing the cost of capital which in turn is making goods expensive. Some wrongly say monetary policies are inefficient as the issues are more structural/fiscal, but what does conventional economics say?

    It appears some solutions lie in the proposals of Mr. Oyedele who began his task with interacting with Nigerians at home and abroad to discuss some of his ideas that may liberate some of Nigeria’s potent economic challenges. There are plans in his reforms on how the country would eliminate informal and implicit taxes, harmonise tax administration, rationalise tax incentives, leverage technology and big data, modernise customs administration, simplify compliance, optimise resources and government assets.

    The proposals also discuss how the country can budget better – Restructure the budget (classify items under infrastructure; human capital investment; personnel cost, headcount and productivity; administrative overheads; debt service and sinking funds), while fully implementing zero based budgeting, and introducing long term appropriation. This would be in line with spending better, tackling systemic corruption, prioritising spending on basic needs to address multidimensional poverty, restricting borrowing to productive spending and self-financing projects, leveraging PPP and equity financing for viable projects, while enhancing public procurement effectiveness.

    Nigeria would be better off if the government finds ways to leverage technology for revenue, debt, and expenditure management while adhering to fiscal rules and benchmark with strict penalties for violations, it would be essential in building a solid foundation for the country.

    The question is when would these plans come into fruition? Are there legislative and political hurdles in the implementation phase that the President can use his almighty political capital to scale? What timeline can they give Nigerians that things would get better?

    Time would tell with how everything shapes up as the government seems to be running on little time to resuscitate the economy. That time can be extended by low hanging fruits and most importantly, fiscal prudence. Tick tock.

    •Dapo-Thomas, a public affairs commentator writes from Lagos

  • Edun restates Fed Govt’s commitment to boosting local economy, agricultural sector

    Edun restates Fed Govt’s commitment to boosting local economy, agricultural sector

    The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday reaffirmed the Federal Government’s commitment to local economic development and agricultural resilience.

    The minister spoke during his visit to Kebbi State on the efforts by the Bola Tinubu administration to reinforce economic partnerships and tackle the challenges posed by natural disasters, including floods.

    A statement by the ministry’s Director of Information and Public Relations, Mohammed Manga, said Edun’s visit was meant to address the significant impact of flooding on agricultural productivity.

    The minister restated President Tinubu’s unwavering dedication to fortifying local economies and addressing the pressing issues caused by natural disasters.

    He emphasised the proactive measures the Federal Government had taken, especially those facilitated through the National Economic Council (NEC) and supported by Kebbi State Governor Nasir Idris.

    The measures, Edun said, included the allocation of N3 billion each to the 36 states of the federation and the Federal Capital Territory (FCT).

    Read Also: Wike vows to curb one chance menace in FCT

    The funds are intended to combat, mitigate, and prepare for the effects of flooding during this year’s rainy season, with a particular focus on supporting local farmers and protecting the agricultural sector.

    Edun, who was accompanied by Governor Idris and the Minister of Budget and Economic Planning, Senator Atiku Bagudu, toured the WACOT Rice Limited’s facility in Argungu.

    The state-of-the-art rice processing plant boasts an annual milling capacity of 120,000 metric tonnes and plays a critical role in supporting thousands of local farmers through its extensive procurement network and 8,000-strong out-grower farming programmes.

    The facility is pivotal to bolstering local rice production and driving economic growth in the region.

    The finance minister and his entourage also visited a rice farm facing the adverse effects of flooding, which poses a threat to agricultural productivity in Kebbi State.

    Edun lauded the resilience of the local community and underscored President Tinubu’s dedication to improving security and boosting the productive capacity across the Northwest.

  • Edun addresses flooding impact on agriculture

    Edun addresses flooding impact on agriculture

    In a move aimed at reinforcing economic partnerships and tackling the challenges posed by natural disasters, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, visited Kebbi State, reaffirming the Federal Government’s commitment to local economic development and agricultural resilience.

    A statement from the Ministry of Finance, signed by Mohammed Manga, Director of Information and Public Relations, outlined the purpose of Edun’s visit, which included addressing the significant impact of flooding on agricultural productivity. Edun highlighted President Bola Ahmed Tinubu’s unwavering dedication to fortifying local economies and addressing the pressing issues caused by natural disasters.

    During the visit, Edun emphasised the proactive measures taken by the Federal Government, facilitated through the National Economic Council (NEC) and supported by Kebbi Governor, Dr. Nasir Idris.

    These measures included the allocation of N3 billion each to the 36 states of the federation and the Federal Capital Territory. The funds are intended to combat, mitigate, and prepare for the effects of flooding during the 2024 rainy season, with a particular focus on supporting local farmers and protecting the agricultural sector.

    Edun, accompanied by Governor Nasir Idris and the Minister of Budget and Economic Planning, Senator Atiku Bagudu, toured the WACOT Rice Limited facility in Argungu.

    The state-of-the-art rice processing plant boasts an annual milling capacity of 120,000 metric tons and plays a critical role in supporting thousands of local farmers through its extensive procurement network and 8,000-strong out-grower farming programs.

    Read Also: Tinubu hails GDP surge, assures of stronger economic performance

    This facility is pivotal in bolstering local rice production and driving economic growth in the region.

    The visit also included a stop at a rice farm currently facing the adverse effects of ongoing flooding, which poses a serious threat to agricultural productivity in Kebbi State. Edun commended the resilience of the local community and underscored President Tinubu’s dedication to improving security and boosting the productive capacity across the region. He called for continued investment from the private sector to further expand agricultural production and solidify Nigeria’s standing as a leading agricultural producer on the global stage.

    The Minister’s visit to Kebbi State not only highlighted the Federal Government’s dedication to supporting local farmers and mitigating the impact of natural disasters but also underscored the importance of private sector collaboration in enhancing agricultural resilience and productivity. As Nigeria advances, the combined efforts of government and stakeholders will be crucial in overcoming challenges and achieving sustainable economic development.

  • Fed Govt moves to implement naira crude sales initiative for local refineries

    Fed Govt moves to implement naira crude sales initiative for local refineries

    The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has convened a high-level meeting in Abuja aimed at ensuring the full implementation of President Bola Ahmed Tinubu’s directive for the Nigerian National Petroleum Corporation Limited (NNPCL) to sell crude oil to local refineries in Naira, rather than in foreign currency.

    The initiative represents a significant policy shift designed to bolster the Nigerian economy by reducing the dependency on foreign exchange for critical domestic operations.

    By mandating that crude oil transactions for local refineries be conducted in Naira, the government aims to empower these facilities, including the newly commissioned Dangote Refinery, to operate more sustainably and contribute to the nation’s economic growth.

    The directive is seen as a critical step in ensuring that the benefits of Nigeria’s oil resources are more directly felt within the country. It also seeks to stabilize the Naira by reducing demand for foreign currency, which has been a significant pressure point for the economy.

    A statement signed by Mohammed Manga, director of information and public relations, said the meeting brought together key figures from various sectors involved in the petroleum and financial industries. Notable participants included Mr. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Mr. Mele Kyari, Group Chief Executive Officer of NNPCL; Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS); and Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, among others.

    Read Also: Tinubu urged to intervene in NNPCL’s failure to supply crude oil

    During the meeting, stakeholders engaged in in-depth discussions aimed at addressing the longstanding challenges within the petroleum sector. These challenges have often hindered the full potential of Nigeria’s oil industry, particularly to refining capacity and financial stability.

    Edun expressed his optimism about the initiative, emphasizing that the collective efforts of the involved parties would be crucial in ensuring its success.

    “This groundbreaking initiative will empower local refineries, stimulate economic growth, and redefine our nation’s petroleum landscape,” he stated.

    His remarks underscored the government’s commitment to overcoming obstacles and ensuring that the policy is effectively implemented.

    The Naira Crude Sales initiative is expected to have far-reaching implications for Nigeria’s economy. By facilitating crude oil sales in Naira, the government hopes to create a more stable economic environment that will enable local refineries to thrive. This, in turn, is anticipated to reduce the country’s reliance on imported refined products, enhance the value chain within the oil sector, and create jobs.

    Additionally, the policy is seen as a key element in President Tinubu’s broader economic strategy, which seeks to diversify the economy, enhance fiscal stability, and promote sustainable growth. The success of this initiative could set a precedent for other sectors, encouraging more policies that prioritize local content and economic resilience.

    As Nigeria embarks on this new economic journey, the collaborative spirit among the key stakeholders will be critical in navigating the complexities of the petroleum sector. The Naira Crude Sales initiative marks a significant milestone in the country’s efforts to chart a more prosperous economic future.

    With all eyes on the implementation process, there is a sense of cautious optimism that this policy will unlock new opportunities, overcome longstanding challenges, and help Nigeria emerge stronger on the global stage. The coming months will be crucial in determining the success of this initiative and its impact on the broader economy.

  • Edun: we’ve made progress in forensic probe into N30tr loans

    Edun: we’ve made progress in forensic probe into N30tr loans

    The Federal Government has made progress in the forensic probe into the N30 trillion Ways and Means loans advanced to the immediate past administration by the Central Bank of Nigeria (CBN), Minister of Finance and Coordinating Minister of the Economy Wale Edun told senators yesterday.

    He also blamed the spike in freight costs for the delay in the takeoff of the electric and Compressed Natural Gas (CNG) vehicles.

    The minister pledged that his ministry would intensify efforts in monitoring the revenue generating agencies to be up and doing.

    Edun made the assertions when he appeared in the company of Accountant-General of the Federation, Dr. Oluwatoyin Madein, before the Senate Committee on Appropriation in Abuja over budget performance.

    Edun said: “The procurement of electric and CNG buses and conversion kits, more importantly, has been held up by a spike in the freight costs.

    “It’s just the ingenuity of one of the young men that is in that business that we have got a bulk carrier that has a lower freight cost.

    “Otherwise, the trade cost per bus became daunting and it made people to just hold on to see whether in fact this procurement was profitable for them.”

    On debt payments, he said: “We have paid $700 million in debt services for 420 national development agencies and others.”

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    Speaking on the contentious Ways and Means facility,  Edun said: “We are also interrogating the N22.7 trillion that we met on the underground. We had instituted forensic audit to see the impact.

    “We are also interrogating the revenues that are due to us from everybody because we need to in view of the fact that Ways and Means is going down rather than up. So, we are servicing all the debts.”

    The Senate panel urged the Federal Government to intensify efforts in funding the capital components of the national budgets which are being implemented concurrently.

    Committee chairman Senator Solomon Adeola lamented the poor funding of the capital components of budgets and urged the minister to improve on it.

    Adeola said: “It is the capital component of the budgets that will showcase this government largely in terms of performances.

    “The capital components tend to showcase various projects that will be executed by this government and people can say, oh, the government is doing this, it’s doing that.

    “That is why we are emphasising on the performance of 2024 capital component. The N1.84 billion achieved so far out of a N9 trillion capital expenditure component is nothing to write home about.

    “I would want you to please look towards this direction. And I want you to do more engagement with the ministries and departments and agencies of the government.”

    The senator also urged the minister to engage more with the Ministries, Departments and Agencies (MDAs), saying most of them were not aware of the current arrangement regarding funding of capital projects.

    He said: “Some agencies will tell you that they have not been given any money for capital projects when we are fully aware that the process of payment of capital has changed.

    “That shows lot of engagement must go on from time to time to bring it to their notice that you are no longer in charge of payment to contractors.

    “I want you to please do continuous engagement. It will help so that everybody can come to terms that the system has changed.

    “Everything about the method of payment, method of business has changed. I would say that. Coming back to the NNPCL, we make it known that we have been assured of two million barrels.

    “Long before now, we have been on 1.2 million barrels over this period. So, that shows that we now have the capacity of two million barrels. Why is it now the NNPCL is assuring us of two million barrels?”

    He also spoke of plans by the Senate to organise a public hearing on the NNPCL where stakeholders in the oil and gas sector would be invited, including the Finance minister.

    He, however, commended the minister for achieving 100 per cent funding of the 2023 supplementary budgets.

    The senator said: “We did supplementary budget, which we have achieved 100% release, which is highly commendable.

    “It will not be out of place for you to have a periodic report on the implementation level of these agencies, so that at least you can be guided on why transiting to the new method of payment as you can be guided.”

  • Edun seeks collaboration to improve social welfare

    Edun seeks collaboration to improve social welfare

    • Fed Govt, UNICEF, others commit to enhanced social protection

    The Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, has called for collaborative efforts to address the multifaceted needs of children and families.

    He made the call at the weekend during the third Social Protection Cross Learning Summit in Abuja.

    The Federal Government introduced a cash transfer programme of N25,000, over a three-month period, to poor and vulnerable households, to alleviate the immediate economic pressures and mitigate the socio-economic impact of recent economic reforms, according to the minister.

    Emphasising the importance of integrated social protection systems, Edun said: “Our goal is to create a comprehensive support network that addresses the multifaceted needs of children and families, ultimately leading to improved outcomes in health, education, and overall well-being. We must work together to bridge gaps and strengthen coordination.”

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    The summit focused on the urgency for comprehensive and effective social protection strategies, especially in Nigeria being the most populous country in Africa, and thus with significant challenges in human capital development, deprivations in health, education, nutrition, child protection and more.

    The Federal Government, in collaboration with UNICEF and other partners, also emphasised the need for strengthened social protection systems to address poverty.

    UNICEF Country Representative Cristian Munduate, who spoke on behalf of the Social Protection Development Partners Group, said: “Social protection is crucial in realising the rights of every child. Child-sensitive social protection is key to ensuring that every child reaches their full potential. We commend the government for significant strides towards the development of several programs and a single registry. However, there is a need to ensure stronger linkage between social protection and essential social services with focus on health, education, and nutrition.”

    According to UNICEF, social protection coverage remains low despite advancements, with only seven per cent of children covered. It added that coordination mechanisms are weak, leading to fragmentation and inefficiency.

    Therefore, the summit aimed to generate actionable insights and fostering collaboration among key players to enhance coverage, coordination, and financing of social protection interventions.

    Nigeria, UNICEF and partners reaffirmed their commitment to advancing social protection aligned with essential services for comprehensive support. A communiqué was signed to introduce the Universal Child Benefit and increase public spending in social protection by two per cent to reduce multidimensional poverty and promote equitable development,” according to UNICEF.

  • Standard Chartered offers to finance infrastructure projects, says Edun

    Standard Chartered offers to finance infrastructure projects, says Edun

    Standard Chartered Bank has expressed interest in financing key infrastructure projects in Nigeria, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said yesterday.

    He listed some of the projects as: the Lagos-Calabar Coastal Highway, Port Harcourt-Maiduguri Rail Line rehabilitation and the provision of $3 billion in innovative financing for the Nigeria Liquified Natural Gas (NLNG) dividend initiative.

    The minister said the bank made the pledge in Abuja when its Global Chief Executive Officer (CEOs), Bill Winters, led a team to President Bola Ahmed Tinubu at the Villa on Monday.

    With Winters on the visit were the bank’s CEO Dalu Ajene and Chairman, Foluso Phillips.

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    Edun described the bank as Nigeria’s valued partner that has agreed to provide financing for infrastructure, advise the country on how to get good ratings, and the prudent management of Nigeria’s Eurobond.

    He said: “They Standard Chartered) are also one of our lead managers for Eurobond issuance, and they advise us on our ratings.

    “I am pleased to note that Moody’s has just completed our rating review and maintained Nigeria’s rating as a positive outlook, which is very encouraging.”

    Edun also said that the Moody’s positive outlook rating followed the recent announcement of the World Bank’s $2.25 billion financing package for Nigeria, reflecting the positive trajectory of the current administration’s economic reforms.