Aso Villa Reads for 22/5/2019

Every day, we bring you the best stories that the Media is reporting about the Government of Nigeria.

According to Premium Times, “the Nigerian National Petroleum Corporation (NNPC) said its remittances to the Federation Account in 2018 exceeded its projections in the 2018 budget by about N41 billion. The NNPC said in a statement on Tuesday that it remitted N1.26 trillion as against the N1.22 trillion projected in the 2018 budget. The Managing Director of NNPC Capital, Godwin Okonkwo, who represented the Group Managing Director, Maikanti Baru, disclosed this during a presentation to the House of Representatives Ad Hoc Committee on the Investigation of the Non-Remittances of Funds to the Federation Account by the corporation between July 2017 and December 2018. NNPC spokesperson, Ndu Ughamadu, quoted the GMD as saying that though 2.3 million barrels per day (mbpd) was proposed in the 2018 budget, national daily production for the period under review averaged between 1.9mbpd and1.89mbpd. Mr. Baru listed the two sources of inflows into the Federation Account from the NNPC to include equity crude oil sales less cost of recovery from the Joint Venture cash call arrears and domestic crude less cost of recovery. He said the Joint Venture cash call arrears were being efficiently managed to ensure steady inflows to the Federation Account. “The current management of NNPC ensures it contributes to the cost of the production of crude oil and gas in the upstream sector to avoid a repeat of the mistakes of the past. If we had made cash call payments in the past, the arrears we are liquidating now would not have arisen. The current situation creates a win-win scenario for the country. The NNPC is strategically saving for the rainy day to make a better future for all of us by liquidating the arrears,” Mr Okonkwo said.”

Daily Trust reports that “the Federal Government has disclosed that it has concluded arrangement to include the foreign missions into the Treasury single account (TSA) The Director, Treasury Single Account, Office of the Accountant-General of the Federation, Sylva Okolieaboh disclosed this while briefing journalists on the sideline of the study by delegates from the Republic of Gambia. Okolieaboh said: “We are extending the TSA to our foreign missions and we will also improve the way we manage the foreign currency under the TSA. That process has started and hopefully in the next four months we should be done with it.” TSA which has seen government save about N45 billion in interest monthly, the government of Ethiopia and Kenya has indicated interest to send in their relevant agencies to understudy Nigeria. The Accountant General of the Gambia, Momodou lamin Bah in his remarks said, they came to learn Nigeria’s approach; success and challenges as recommended by the International Monetary Fund (IMF).”

“In line with efforts to reposition the mining and steel sector, the Minister of State for Mines and Steel Development, Hon. Abubakar Bawa Bwari has said the federal government will continue to collaborate with international financial partners to revamp the sector. The minister made the assertion while receiving a team from Mining and Metals Corporate and Investment Banking officials of Standard Bank, and Stanbic IBTC in his office recently, in Abuja. He reiterated the commitment of the President Mohammadu Buhari-led administration to give the mining sector the desired priority that would enhance sustainable economic growth.” This Day reports that “Bwari, informed the team that funding had been one of the major factors mitigating against the development of the sector, but noted the interest of the bank to fund mining in the country was a welcome development. While thanking the team for their visit, the minister said: “One of the potent areas we are looking forward to is funding, and I am sure that you are going to be a pace setter when it comes to funding mining operation in Nigeria.” The minister assured the Executive Secretary, Solid Mineral Development Fund, Hajia Fatima Shinkafi, who facilitated the visit and the team that the federal government would give the necessary support ensuring that the collaboration bring about the desired result.”

“The Purchasing Managers Index (PMI) of the manufacturing sector of the economy expanded to 57.8 points in May from 57.7 in the previous month. Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) while addressing the media after Monetary policy Committee (MPC) meeting on Tuesday said the manufacturing and non-manufacturing growth were driven by Production level, supplier delivery time and employment level grew,which grew at a faster rate. The CBN on Tuesday released the PMI report for the month of May which show that 13 out of the 14 manufacturing sub-sectors surveyed reported growth in the review month. These include: transportation equipment; electrical equipment; petroleum and coal products; paper products; cement; food, beverage and tobacco products; plastics and rubber products; chemical and pharmaceutical products; fabricated metal products; furniture and related products; nonmetallic mineral products; textile, apparel, leather and footwear and printing and related support activities. The primary metal subsector recorded decline in the review period. At 59.1 points, the production level index for the manufacturing sector grew for the twenty-seventh consecutive month in May 2019. The index indicated a faster growth in the current month, when compared to its level of 58.8 index points in the month of April 2019. The composite PMI for the non- manufacturing sector stood at 58.9 points in May 2019, indicating expansion in the Non-manufacturing PMI for the 25th consecutive month. The index grew at a faster rate when compared to its level of 58.7 in April 2019.” Business Day reported this.

“With crude oil price rising steadily above benchmark level approved in the 2019 budget, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Tuesday warned the federal government against embarking on a spending spree. It urged the government to begin to save for the rainy day. In its communique at the end of its two-day meeting in Abuja on Tuesday, the committee asked the federal government to urgently build financial buffers through a more realistic crude oil price benchmark in its budget. “The crude oil benchmark in the 2019 budget is $60 per barrel at 2.3 million barrels per day output level. Now that price is almost at $70 per barrel, what the MPC is saying is that there is no need for government to say it should begin to spend since we have more money by increasing the budget benchmark from $60 per barrel to say $69 or $70. “If the money is realised between $69 and $72, we should save and build buffer for the rainy day when it happens,” the committee said.” Premium Times reports that “the committee recommended a framework to speed up the recovery of delinquent loans in the banking system and open up access to credits to the real sector to boost growth of the economy. The committee also called on the CBN to urgently establish modalities to promote consumer and mortgage lending in the economy to boost the flow of credit to the real sector and drive output growth.”

“The Minister of Finance, Zainab Ahmed, has said the presence of Investment and Security Tribunals (IST) will enhance the confidence of foreign investors in the country’s capital market and financial sector. Ahmed made the remark at the formal unveiling of the new Lagos zonal office of IST yesterday. The minister said: “The capital market holds the potentials for growth and any effort to facilitate the adjudication of issues in the capital market will accelerate that growth.” Also speaking at the event, the Chairman of IST, Siaka Isaiah Idoko-Akoh said: “The relevance and desirability of the investments and securities tribunal in our capital market ecosystem, no doubt underpins the dire need of provision of the needed infrastructures for its smooth operations. Unfortunately paucity of funds over the years has served to make this a mere wishful thinking thus explain why the occasion is dear to our hearts at the tribunal.” Daily Trust reported this.

“The Central Bank of Nigeria (CBN) is to limit Deposit Money Banks’ excessive appetite for government securities. The Governor of CBN, Mr. Godwin Emediele, announced this at a press briefing on the decisions of the Monetary Policy Committee (MPC) meeting which ended this afternoon in Abuja. According to him, the step became necessary to curtail banks’ focus on investing in government debt instruments, while neglecting their roles of lending to the private sector, to bring about the needed growth in the economy. Mr. Emefiele also announced MPC’s decision to retain the Monetary Policy Rate (MPR) at 13.5 per cent, along with all other parameters.” Vanguard reported this.

According to Daily Trust “the newly appointed Managing Director of Federal Airports Authority of Nigeria (FAAN) Capt. Rabiu Yadudu has revealed his plans for the agency and airports infrastructure. Capt. Yaduda who spoke with aviation correspondents yesterday at the General Aviation Terminal, Nnamdi Azikiwe International Airport, Abuja, said he would work to improve aviation safety and infrastructure to improve passengers’ experience. “My primary vision is to make sure we move our institution which is the aviation sector forward to be at par with in terms of performance and functionality with the rest of the world and this involves improving our personnel, facilities, structures, procedures and processes; all aspect of airport operations and management,” he said. He also said FAAN under his watch would keep on working on set targets until Nigerian aviation is what the country craves for. On the issue of airport certification, he said plans had been concluded to get Port Harcourt and Kano airports certified.”

“The federal government has planned to earn a minimum of N6 billion from the concessioning of 20 silos under consideration. Audu Ogbeh, minister of agriculture and rural development speaking at the handing over ceremony of the silos to the concessionaires, in abuja, stating that the government established silos complexes and commodity warehouses in various parts of the country aims at promoting products storage and stabilize commodity prices to industries. He said “The federal government embarked on the construction of first set of metal silo complexes consisting of the five silos at Akure, Gombe, Ogoja, Minna and Makurdi. Government established silos complexes and commodity warehouses in various parts of the country to aid the storage of products, stabilize commodity prices and supply commodities to industries”.” Business Day reports that “he explained that the concession is mainly for the purpose of ensuring effective and efficient operation and maximum utilization of the silos adding that the Federal executive council has approved 20 of the 33 silos complexes to be concessioned after successful negotiation with the preferred bidders. The minister added that of all the silos, the federal government will retain 6 silos for price stability, strategic reserve and to guarantee minimum price scheme. The concessionaires include; Matrixville consortium, flour mill limited, coscharis farms limited, agro universal consortium, Ebony agro industries limited, and Neon farms Africa amongst others.”

“The Minister of State (Aviation), Sen. Hadi Sirika on Wednesday commissioned several projects at various airports across the country. The minister kicked off the event at the Nnamdi Azikiwe International Airport Abuja as he commissioned the 10mw independent power production plant to power the Abuja local and international airport terminal facilities, the accident rescue centre for emergencies, fire watch tower at general aviation terminal Abuja and newly renovated terminal D at the local wind of the Abuja airport as well. The minister also commissioned the NiMet regional office at the Kano international airport. Also commissioned at the Kano airport is the regional office of the Accident Investigation Bureau (AIB) and the General Aviation Terminal (GAT). Also commissioned is the terminal building, the Meteorology Institute and Met Enclosure at the Katsina airport. Speaking during the commissioning of the power plant, the minister said the power plant is a direct response to the identified deficiencies at the newly commissioned new international terminal.” Daily Trust “reports that the new international terminal at the Abuja airport commissioned by President Muhammadu Buhari in December 2018 had several defects in the design. The defect included inadequate power facilities to power the new facility. But with the inauguration of the new plant, inadequate power issues at the facility and indeed the Abuja airport has been resolved.”