Connect with us

Business News

World Bank applauds FG on petrol subsidy removal

Published

on

The World Bank has applauded the removal of petrol subsidy in Nigeria was an important step amid the COVID-19 crisis, Themoneymetrics reports.

The bank, in its ‘Africa’s Pulse’ report entitled ‘Charting the road to recovery’, said countries in sub-Saharan Africa were seizing the opportunity created by the crisis to accelerate the structural reform agenda.

“The COVID-19 crisis is not being wasted among countries in the region… In Nigeria, the government has taken important steps to reform its subsidy regime,” it said.

The World Bank noted that the Nigerian government had eliminated petrol subsidy and established a market-based pricing mechanism with no price ceilings.

It said “The gasoline (petrol) price is set monthly by the Petroleum Products Pricing Regulatory Agency from market-based costs.

“When international petroleum product prices start to recover, the PPPRA will allow price increases accordingly.”

On September 8, the Federal Government’s removal of petrol subsidy and the increase in electricity tariff were in line with reforms being sought by the International Monetary Fund and the World Bank.

In a report on August 17, Reuters quoted sources as saying that the World Bank was unlikely to approve a much-needed $1.5bn for Nigeria in August as planned due to concerns over desired reforms.

Reuters said fuel subsidies and electricity tariffs were also being discussed, adding that a banking source said the loan could not be approved until October.

The World Bank projected on Thursday that sub-Sahara Africa’s real GDP would contract by 3.3 per cent this year, after expanding by 2.4 per cent in 2019.

It said, “In Nigeria, after expanding 1.9 per cent year-on-year in 2020 Q1, real GDP contracted by 6.1 year-on-year in 2020 Q2, with growth in the oil and non-oil sectors falling.

“The near-term outlook is subject to considerable uncertainty as the economy continues to grapple with the effects of the pandemic.”

The report said activity data suggested that the rebound in activity that started in Q3 2020 might have stalled.

“Investment remains weak amid high uncertainty. Growth is projected to fall by 4.1 per cent in 2020 and remain subdued at 0.3 per cent in 2021,” it added.

According to the World Bank, although Nigeria’s public debt level is projected to rise, it is expected to remain below 30 per cent of GDP in 2020.

Advertisement
Click to comment

Leave a Reply

Business

VP Osinbajo calls for provision of capital to grow businesses for long term

The Vice President has stated that the banking sector plays a crucial role in promoting increased & inclusive growth in Nigeria.

Published

on

There is need to further deepen the provision of capital that will allow businesses to grow over the long term. This was disclosed by Vice President Yemi Osinbajo during the Bankers Committee on Friday.

He commended the DMBs for their patriotic contributions to sustain growth but called for the need to further deepen the provision of capital that would allow businesses to grow over the long term.

“The banking sector plays a crucial role in promoting increased & inclusive growth in Nigeria. I commend #CBN for the forward-looking support for growth-related initiatives, especially under the economic sustainability plan,” he said.

What you should know

  • On Friday, VP Osinbajo had called for crypto regulation, knowing fully well the role crypto plays in the global financial ecosystem, as he opined that such disruption often made room for progress, according to Nairametrics.
  • Osinbajo also advised the SEC, and Central Bank of Nigeria to create a regulatory road map, while fully appreciating the stance of the CBN, Nigerian SEC, and law enforcement agencies on the possible abuses of crypto assets.
  • The vice president further stressed the important role cryptocurrencies would play in the coming years as they would most likely challenge traditional banking, including reserve banking, in ways the world hadn’t yet imagined. He thus stressed the need for Nigeria to be prepared for such a seismic shift.

 

Continue Reading

Business

Sanwo-Olu says construction work on Fourth Mainland Bridge to start end of 2021

Governor Sanwo-Olu has disclosed that the foundation for the proposed 4th Mainland Bridge would be laid before the end of 2021.

Published

on

The Lagos State Governor, Mr Babajide Sanwo-Olu, has revealed that the foundation for the proposed Fourth Mainland Bridge would be laid before the end of the year 2021.

The execution of the bridge is geared towards improving the transport infrastructure and movement across the state.

According to a report from the News Agency of Nigeria (NAN), this disclosure was made by Sanwo-Olu during the 16th Executive/Legislative Parley, with the theme: ”A Consensus Agenda for Rebuilding Lagos”, organised by the Office of Civic Engagement.

He pointed out that the promise to construct the Fourth Mainland Bridge is not a political one.

What the Lagos State Governor is saying

Sanwo-Olu during the interactive session said, ”We did not politically promise Fourth Mainland Bridge but we are going to do Fourth Mainland Bridge.

”With your prayers and by the grace of Almighty God, we shall turn the sod and lay the foundation for the building and construction of that Fourth Mainland Bridge before the end of this year.

”We are on course and I am sure that the 37km ring road is on track, which will change the face of transportation and movement in Lagos,” the governor said.

The governor also disclosed that his administration was on course to complete the Blue Line and Red Line rail projects which were started several years back, saying the project will be completed and trains will move on the two rail lines before the end of his administration.

He said, ”It is a commitment that we have given to Lagosians and it is a commitment that we will see will come to fruition because we have finished the financial closure and we are excited about that project.’

Speaking at the event, the Special Adviser, Office Of Civic Engagement, Princess Aderemi Adebowale, said that the executive and legislature would discuss extensively the theme of the retreat, “A Consensus Agenda for Rebuilding Lagos”.

While saying that the discussion in the next 48 hours would help to fast track the rebuilding of the state, Adebowale said that they would delve deeply into issues such as Youth Leadership Role, Grassroots Development: a catalyst for growth, and Role of Social Media in Nation Building, among others.

What you should know

  • It can be recalled that the Lagos State Government has shortlisted 6 companies for the design, development, construction, operation, and maintenance of the Fourth Mainland Bridge.
  • This followed the government’s issuance of a Request for Qualification (RFQ) in February this year. The 6 companies were said to have completed the technical and financial capacity requirements.
  • Lagos State said it will announce the selection of the next stage in due course, even as the RFQ will be given to the pre-qualified bidders.
  • The Fourth Mainland Bridge is a 37.4km freeway subdivided into three sections namely Island Section, Lagoon Section and Mainland Section. It will commence from Abraham Adesanya Roundabout in Lekki through Ajah and Langbasa areas, crossing the Ado Badore Road before arriving at the Lagoon shoreline.
Continue Reading

Business News

Lagos says blue, red rail lines will be ready by December 2022

The state government expects the 2 lines to change the transport landscape of the state when fully operational.

Published

on

The Lagos State Government has revealed that the Lagos Blue and Red rail lines will be operational by December 2022.

This is as the state government expects the 2 lines to change the transport landscape of the state when fully operational, and part of the traffic management plan to actualize the Lagos Rail Mass Transit.

According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the General Manager of the Lagos Metropolitan Area Transport Authority (LAMATA), Mrs Abimbola Akinajo, during a visit by the officials of the Office of Transformation, Creativity and innovation, (Office of Head of Service) on Wednesday, in Lagos.

Akinajo said that LAMATA was working assiduously to ensure the delivery of the rail lines to passenger operation by December 2022.

What the General Manager of LAMATA is saying

Mrs Akinajo, in her statement, said, “These two lines will change the transport landscape of Lagos when operational. We have a transport master plan which speaks to the vision of Gov. Babajide Sanwo-Olu on transportation.

“We have six rail lines and one monorail, 14 Bus Rapid Transit (BRT) corridors, over 20 water routes and we are sure that when all of these are properly harnessed, Lagos will join the league of cities with an efficient transport system.

“We have advertised four other rail lines for the private sector to invest. We are working on the private sector so they could bring in about 1,500 high capacity buses by 2022. We would be launching our First Mile Last Mile scheme very soon. We are working on the construction of two interchanges at Mile 2 and CMS. We want to ensure that Lagosians travel in comfort.”

The LAMATA boss explained that the vision of an intermodal integrated transport system was meant to create choices for Lagos commuters without stress to achieve their daily commute needs, and meet up their economic and social engagements.

Akinajo also disclosed that LAMATA had opened up 57 routes for operators which include the 2 main transport unions, the National Union of Road Transport Workers and the Road Transport Employers Association of Nigeria.

While noting that they were currently operating on the Oshodi-Abule Egba BRT corridor and other standard bus routes, she told the officials that LAMATA needed to increase its manpower as the transport networks unfolded, and an office complex to accommodate its staff.

What you should know

  • It can be recalled that about 2 weeks ago, the Lagos State Government announced the temporary closure of the Yaba overpass for 3 weeks for Red Line soil testing.
  • The Lagos Rail Mass Transit is an urban rail system being developed in Lagos. The system is managed by LAMATA.
  • The railway equipment including electric power, signalling, rolling stock, and fare collection equipment will be provided by the private sector under a Concession Contract. LAMATA is responsible for policy direction, regulation, and infrastructure for the network.
  • The first 2 lines of the urban light rail project are estimated to cost $1.4bn. The Red line will be 30km long and will run between Marina and Agbado. The Blue line will be 27km long, connecting Okokomaiko to Marina.
  • The Blue line will cost $1.2bn and is being funded entirely by the Lagos State Government.
Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement unmute the video for sound
Advertisement
Advertisement

Facebook

Follow us on Twitter

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 92 other subscribers

Trending