The
Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi
Okonjo-Iweala, and Governor, Central Bank of Nigeria, CBN, Mallam Lamido Sanusi
yesterday decried the adverse effects of shortage of power supply in the
country.
Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi
Okonjo-Iweala, and Governor, Central Bank of Nigeria, CBN, Mallam Lamido Sanusi
yesterday decried the adverse effects of shortage of power supply in the
country.
Okonjo-Iweala
said the power situation needed to be improved for the economy to move forward.
Also, Sanusi bemoaned the power situation, saying that no bank would give a
loan to a company that has no power to run its business. Both spoke yesterday
in Lagos at the 4th Renaissance Capital Annual Pan African Investors’
Conference.
said the power situation needed to be improved for the economy to move forward.
Also, Sanusi bemoaned the power situation, saying that no bank would give a
loan to a company that has no power to run its business. Both spoke yesterday
in Lagos at the 4th Renaissance Capital Annual Pan African Investors’
Conference.
The
CBN governor revealed that the banks refuse to give loans to many companies due
to the poor power situation that affected the ability to repay. Sanusi said
that companies do not get loans from banks because many of them cannot fulfill
the demands of banks as their businesses are not doing well.
CBN governor revealed that the banks refuse to give loans to many companies due
to the poor power situation that affected the ability to repay. Sanusi said
that companies do not get loans from banks because many of them cannot fulfill
the demands of banks as their businesses are not doing well.
“The
issue is that the business environment is hostile especially to the real
sector. It is not entirely that the interest rate is high; it also has to do
with infrastructure. If the right infrastructure are there, interest rates
would definitely come down.
issue is that the business environment is hostile especially to the real
sector. It is not entirely that the interest rate is high; it also has to do
with infrastructure. If the right infrastructure are there, interest rates
would definitely come down.
The
high interest rate is also meant to protect the banks and if the banks are not
protected the entire economy goes down,” Sanusi said. According to the CBN
governor, “Low interest rate does not compensate for lack of power.
high interest rate is also meant to protect the banks and if the banks are not
protected the entire economy goes down,” Sanusi said. According to the CBN
governor, “Low interest rate does not compensate for lack of power.
It
does not also compensate for lack of infrastructure. Yet we are concerned about
interest rate but we cannot risk it now to lower interest rate until we are
sure the condition is right for that.” Also speaking at the conference, the
Minister of Finance said that if South Africa with population of about 50
million people could generate over 40,000 megawatts of electricity, why not
Nigeria with over 150 million people.
does not also compensate for lack of infrastructure. Yet we are concerned about
interest rate but we cannot risk it now to lower interest rate until we are
sure the condition is right for that.” Also speaking at the conference, the
Minister of Finance said that if South Africa with population of about 50
million people could generate over 40,000 megawatts of electricity, why not
Nigeria with over 150 million people.
Okonjo-Iweala
said the biggest challenge facing the present administration is job creation
and that to tackle that, the power sector must be up and running.
said the biggest challenge facing the present administration is job creation
and that to tackle that, the power sector must be up and running.
The
minister noted that the Goodluck Jonathan administration has done a lot to
improve power generation, assuring that in a matter of months, the results
would begin to show.
minister noted that the Goodluck Jonathan administration has done a lot to
improve power generation, assuring that in a matter of months, the results
would begin to show.
“Nigeria’s
economy has been growing on an average of seven per cent in the past few years.
When we came in during President Olusegun Obasanjo’s second term, we had a
growth of 2.4 per cent, but it has risen to seven per cent,” she said.
Okonjo-Iweala noted that there is no country that does not have problems, but
what the citizens want to hear is when the problems would be solved.
economy has been growing on an average of seven per cent in the past few years.
When we came in during President Olusegun Obasanjo’s second term, we had a
growth of 2.4 per cent, but it has risen to seven per cent,” she said.
Okonjo-Iweala noted that there is no country that does not have problems, but
what the citizens want to hear is when the problems would be solved.
She
said: “We have actually started doing things rightly. We are beginning to keep
the macro-economic challenge stable. Another challenge is that of fiscal
consolidation. When we tighten, we direct investment to areas that need growth.
said: “We have actually started doing things rightly. We are beginning to keep
the macro-economic challenge stable. Another challenge is that of fiscal
consolidation. When we tighten, we direct investment to areas that need growth.
“When
this administration came on board the budget was spending 74 per cent for
recurrent. Our desire is to get to 60 per cent of recurrent and 40 per cent of
capital expenditure by 2015, but we have gotten to 68 per cent.
this administration came on board the budget was spending 74 per cent for
recurrent. Our desire is to get to 60 per cent of recurrent and 40 per cent of
capital expenditure by 2015, but we have gotten to 68 per cent.
“Another
area we are working on right now is to bring down domestic debt. This year we
would redeem over N100bn bond.”
area we are working on right now is to bring down domestic debt. This year we
would redeem over N100bn bond.”
She
said that power and agriculture are the ‘game changers’ in Nigeria. According
to her, “the Minister for Agriculture is doing a good job. He has been able to
transform the sector and very soon, more jobs would be created in that area. He
has turned even what the small farmers are doing into business.”
said that power and agriculture are the ‘game changers’ in Nigeria. According
to her, “the Minister for Agriculture is doing a good job. He has been able to
transform the sector and very soon, more jobs would be created in that area. He
has turned even what the small farmers are doing into business.”
Also
speaking at the event, Chief Executive Officer, West Africa, Renaissance
Capital, Mrs. Yvonne Ike, said that Africa especially Nigeria is going through
a growth revolution.
speaking at the event, Chief Executive Officer, West Africa, Renaissance
Capital, Mrs. Yvonne Ike, said that Africa especially Nigeria is going through
a growth revolution.
Ike
said: “Despite the fact that about 40 per cent of the continent’s population is
still living below $1 per day; 133 million young people are illiterates and
infrastructure deficit remained widespread, the continent still hold a lot of
promise for the world order.
said: “Despite the fact that about 40 per cent of the continent’s population is
still living below $1 per day; 133 million young people are illiterates and
infrastructure deficit remained widespread, the continent still hold a lot of
promise for the world order.
Meanwhile,
Okonjo- Iweala at another event in Lagos said that disbursement of funds for
Federal Government‘s ministries, departments and agencies would henceforth be
based on judicious usage of the previous allocations given to them. The
minister said this at the Nigerian Navy base, Apapa, during the commissioning
of tow boats newly acquired by the service.
Okonjo- Iweala at another event in Lagos said that disbursement of funds for
Federal Government‘s ministries, departments and agencies would henceforth be
based on judicious usage of the previous allocations given to them. The
minister said this at the Nigerian Navy base, Apapa, during the commissioning
of tow boats newly acquired by the service.
Lauding
the leadership of the Nigerian Navy for putting into effective use, the
allocation made available for procurement of boats which has engendered some
sanity in the Niger Delta creeks, the minister maintained that the current
administration of President Jonathan is poised to make more funds available for
all its agencies once they show performance in their duties.
the leadership of the Nigerian Navy for putting into effective use, the
allocation made available for procurement of boats which has engendered some
sanity in the Niger Delta creeks, the minister maintained that the current
administration of President Jonathan is poised to make more funds available for
all its agencies once they show performance in their duties.
Her
words: “The Federal Government is happy to assist the Nigerian Navy because
over time there had been successes in the discharge of their duties.
words: “The Federal Government is happy to assist the Nigerian Navy because
over time there had been successes in the discharge of their duties.
The
Chief of Naval Staff came to us (FG) with evidence of what they are achieving in
the troubled Niger Delta and along Nigerian maritime domain and this has
reduced illegal oil theft; the reason for which they need these patrol boats.
When you are getting results like that, you are now encouraged to put more
muscle and money behind it.”
Chief of Naval Staff came to us (FG) with evidence of what they are achieving in
the troubled Niger Delta and along Nigerian maritime domain and this has
reduced illegal oil theft; the reason for which they need these patrol boats.
When you are getting results like that, you are now encouraged to put more
muscle and money behind it.”
Speaking
at the event, Minister of State for Defence, Erelu Olusola Obada, also assured
the service that the Federal Government is determined to reposition the armed
forces for optimal performance in the country.
at the event, Minister of State for Defence, Erelu Olusola Obada, also assured
the service that the Federal Government is determined to reposition the armed
forces for optimal performance in the country.
Chief
of the Naval Staff, Vice Admiral Dele Ezeoba, who thanked the Federal
Government for the procurement of the boats, however, maintained that the
Nigerian Navy requires a minimum of 40 boats to effectively curtail illegal
activities on the nation’s waters.
of the Naval Staff, Vice Admiral Dele Ezeoba, who thanked the Federal
Government for the procurement of the boats, however, maintained that the
Nigerian Navy requires a minimum of 40 boats to effectively curtail illegal
activities on the nation’s waters.
Source:
National Mirror
National Mirror
