APA – Lagos (Nigeria)
The warning by the International Monetary Fund to Nigeria to expect a significant reduction in foreign loans as the global economy continues to experience new shocks and contractions is one of the trending stories in Nigerian newspapers on Wednesday.
The Punch reports that the International Monetary Fund has warned Nigeria to expect a significant reduction in foreign loans as the global economy continues to experience new shocks and contractions.
The IMF Deputy Divisional Chief, Wenjie Chen, stated this during a keynote presentation at the International Monetary Fund Regional Economic Outlook which was held in Lagos on Tuesday.
According to Chen, borrowing costs, high-interest rates and the increasing value of the dollar have continued to put a strain on Nigeria’s economy and that of its Sub-Saharan African counterparts.
She noted that due to the uncertainties surrounding the global economic environment, loans from China as well as other advanced economies to Africa have been on a decline.
Stating that the public debt ratio has doubled in the region in the past decade, Chen added that debt vulnerabilities of Nigeria and the rest of SSA would continue to increase.
Chen said, “In terms of the funding squeeze, the three main manifestations that many countries are facing are: the rise in borrowing costs. You can see that virtually all the frontier markets have been shut out of the Eurobond markets since the spring of 2022. What that means is that they cannot raise financing on these international markets. Eurobond market has been a large component of financing for these countries.
“Lastly, what this has meant in terms of the global economy’s reaction to the Russia-Ukraine war in terms of rises in price and the cost of living crisis has placed very high interest rates. Not only were interest rates rising, the value of the dollar rose to a 20-year high last year. For many African countries, the cost of servicing these debts has also gone up.
“Inflation is still a major concern for many African economies. Many countries are still going through recovery after the pandemic.”
To address the many issues confronting the Nigerian economy, Chen said the IMF’s policy advice to Nigeria is based on four key policy priorities — fiscal policy, monetary policy, exchange rate policy and structural reforms.
The newspaper says that the Chairman of the Dangote Group, Aliko Dangote, has flayed the Nigeria Customs Service, Nigerian Ports Authority and the Nigerian Shippers’ Council for the congestion of the nation’s ports.
Dangote slammed maritime sector stakeholders in his remarks at the third ‘Race to US$200bn In FX Repatriation’ Non-Oil Export Summit of the Central Bank of Nigeria held in Lagos on Tuesday.
He said, “There are two issues; one is the terminal operators and the second is Customs. For terminal operators, what they have created in most of their space in the ports is just a container-stacking lot, so that they can be making money, because it is not in their interest for you to clear your goods on time, they want to charge you demurrage.
“The gentlemen from the Shippers Council, you know that there are quite of lot complaints from people. You know roads are built which are supposed to lead to flawless traffic but there is still congestion. Why? Because they have turned all the space where they are supposed to allow some trucks to go in, park and load, into a stacking lot, which shouldn’t be.”
“The gentlemen from the Shippers Council, you know that there are quite of lot complaints from people. You know roads are built which are supposed to lead to flawless traffic but there is still congestion. Why? Because they have turned all the space where they are supposed to allow some trucks to go in, park and load, into a stacking lot, which shouldn’t be.”
According to Africa’s richest man, shippers’ council and terminal operators have to change their ways to aid the export industry in the country.
“The terminal operators have to also change what they are doing now with the help of the Nigerian Shippers’ Council. The problem we have in that area is that we don’t have a very strong regulator. Shippers council, I think you need to rise and NPA (too). We are also a terminal operator, so I know what they are doing.
“What they need to do is make sure that you can clear your goods, like any other country, within 48 hours maximum. Sometimes, by the time you pay terminal charges and demurrage, there is no way you can become competitive when you export. There is a policy by the government that when you export, whatever you export, there are no charges,” he said.
The Guardian reports that the Central Bank of Nigeria (CBN) has disbursed a total of N144 billion to exporters of semi and finished commodities as rebates in the life of the RT200 Programme.
Last quarter alone, the exporters were paid a total of N25.04 billion or about an eightfold year-on-year increase. The non-oil rebate scheme, a major pillar of the RT200, took off in the first quarter of last year with exporters receiving a total incentives of N3.23 billion.
For a dollar repatriated and sold at the Investors’ and Exporters’ (I&E) window for third-party utilisation, exporters are given N65. Foreign exchange (FX) repatriated for own use through the official window attracts N35 per dollar.
At the RT200 Non-oil Summit, another leg of the programme, held in Lagos yesterday, the CBN Governor, Godwin Emefiele, described the scheme as a phenomenal success story in the effort to raise the performance of the critical sector.
Emefiele told the gathering that a total of $1.7 billion has been repatriated this year so far whereas 46.5 per cent of the value (or $790 million) was sold at the I&E window. The balance, he said, is retained in the exporters’ domiciliary accounts.
“Please note that proceeds that are not sold at the I&E window cannot and will not be eligible for the rebate. So, we encourage holding their export proceeds in their domiciliary accounts to take advantage of the rebate by selling at the I&E Window,” Emefiele pleaded.
Previously, export proceeds were sold at the parallel market where exporters earn a premium. The CBN had lamented about the consequences of the linkage for the country’s FX management.
The newspaper says that the Federal Airports Authority of Nigeria (FAAN) has ordered relocation of all airplanes parked at the General Aviation Terminal (GAT) apron of the Nnamdi Azikiwe International Airport (NAIA), Abuja, ahead of the May 29 presidential inauguration.
The order, which some operators have found disturbing, was hinged on “security and safety reasons.”
The organisation, in a memo to concerned aircraft operators, yesterday, said the ceremony is a high-security event.
“And in order to ensure the safety and security of all parties involved, it has become necessary to temporarily relocate all aircraft parked at the GAT to alternate airports. To this end, you are kindly requested to relocate your aircraft on or before May 22, 2023,” the memo reads in part.
A private charter operator, however, said the order was rash and inconsiderate of business partners.
He said: “I still don’t understand what parked aircraft has got to do with political events. The directive is strange, and it shows you the mindset of those civil servants saddled with the affairs of businesses and core professionals.
“Will the unserviceable aircrafts be towed away from their current locations? Is FAAN ready to pay for the fuel wear and tear for relocation and also pay for landing and parking at those alternate airports? The letter did not state when the aircraft are required to return back to Abuja. Who does that?”
GIK/APA