The warning by the Organised Private Sector of the dire consequences of the suspension of the planned withdrawal of the subsidy regime announced on Monday by the government is one of the trending stories in Nigerian newspapers on Wednesday.
The Guardian reports that there would be dire consequences, the Organised Private Sector (OPS) stated, yesterday, in reaction to Federal Government’s suspension of the planned withdrawal of the subsidy regime announced on Monday. The warning came from the Lagos Chamber of Commerce and Industry (LCCI) and the Centre for the Promotion of Private Enterprise (CPPE).
This is as President Muhammadu Buhari, yesterday, approved the suspension of the removal of fuel subsidy until further notice and proposed an 18 months extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA) that was billed to go into effect this February.
With this, President Buhari would be abdicating responsibility of taking a decision on the removal of petrol subsidy, five months after signing the PIA into law on August 16, 2021.
The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this to newsmen after he met with the President, stating that no law is cast in stone.
He further disclosed that government was working to ensure that proper structures were on ground, including palliatives, before such a decision would become inevitable.
LCCI said that with the suspension of the planned phase-off of the fuel subsidy regime, Nigerians should expect more borrowings from government to enable it carry out its projects.
Its Director-General, Dr Chinyere Almona, in a statement yesterday, argued that, with a monthly payment of about N250 billion to subsidise fuel consumption, an additional N1.5 trillion expenditure would have to be provided for in the 2022 Federal budget.
She added that with the additional expenditure against the projected revenue, deficit financing would be needed to support the budget expenditure, which might likely result in government borrowing more than projected, to finance the expenditure in the face of revenue mobilisation challenge.
The newspaper says that the Minister of Science, Technology and Innovation, Dr. Ogbonnaya Onu, says that Nigeria has already achieved a milestone in its economic diversification initiative.
He stated that many commodities hitherto imported were now being produced in the country.
Onu, who stated this when Taraba State Governor, Darius Dickson Ishaku paid him a courtesy visit in his office in Abuja, however said the government was working to deepen diversification.
The minister noted that the present administration is working judiciously to move the nation’s economy from resource commodity to knowledge-based economy that is innovation-driven.
According to him, for Nigeria to be truly great like other technologically advanced countries, it must pay special attention to the development of Science, Technology and Innovation (STI).
He said: “In the past five to six years, we (ministry) have been leading the way to ensure that our economy will no longer depend entirely on commodities but depend on knowledge that is innovation driven.
“We are very happy that this is happening because we have already seen good results as we are gradually moving the nation away from depending entirely on commodities so that we can use our brain to add value to our enormous resources.”
The Punch reports that the International Monetary Fund has retained its 2022 growth forecast for Nigeria at 2.7 per cent and increased 2023 projection by 0.1 per cent to 2.7 per cent. The IMF had in its October report last year projected a 2.7 per cent growth rate for 2022 and 2.6 per cent for 2023.
In its January World Economic Outlook report released on Tuesday, the IMF downgraded its growth forecast for sub-Saharan Africa to 3.7 per cent and 4.0 per cent for 2022 and 2023 respectively from 3.6 per cent and 3.9 per cent forecast in its October 2021 WEO report.
The IMF also reduced its forecast for global economic growth to 4.4 per cent in 2023, representing 0.5 percentage points lower than the 4.9 per cent projected in October.
According to the IMF, the decline will be triggered majorly by the COVID-19 variant spreads and inflation.
It said, “The global economy enters 2022 in a weaker position than previously expected. As the new Omicron COVID-19 variant spreads, countries have reimposed mobility restrictions.
“Rising energy prices and supply disruptions have resulted in higher and more broad-based inflation than anticipated, notably in the United States and many emerging markets and developing economies.
The newspaper says that President Muhammadu Buhari, on Tuesday, directed all security institutions to immediately leverage 5G technology to enhance national security when deployed.
Buhari spoke at the launch of the National Policy on 5G for Nigeria’s Digital Economy, saying the Federal Government would take full advantage of the opportunities provided by 5G for the nation’s economy, security, and well-being.
The Special Adviser to the President on Media and Publicity, Femi Adesina, disclosed this in a statement titled ‘Nigeria looks to 5G technology to address security challenges as President Buhari launches national policy.’
According to him, the President allayed fears over health safety of 5G, affirming that such issues have been “effectively addressed” in developing a policy that suits the country.
The Minister of Communication and Digital Economy, Isa Pantami, had on September 23, 2021 said the 5G network would be deployed in Nigeria in January 2022 and would aid surveillance against vandalism of public assets.
Highlighting the benefits of 5G technologies, Buhari said it could support virtually every sector of the economy, including enhanced connectivity, improved healthcare, support for education while fostering smart cities, and boosting agriculture, among other advantages.
The Nation newspaper reports that the Lagos Chamber of Commerce & Industry (LCCI) has urged the Federal Government to ensure that the implementation of the Petroleum Industry Act 2021 (PIA 2021), which is a game changer for the oil and gas industry, is implemented.
LCCI Director-General Dr. Chinyere Almona canvassed the need for stakeholders’ consultations on addressing the implications of lapsed provisions of the Act and forging the way forward for the full implementation of the Act.
In a statement made available to The Nation, she commended the political will of President Mohammadu Buhari by signing the Bill into law to enjoy the full exploitation of the inherent potential of the oil and gas industry.
The Chamber had earlier issued a statement commending the Federal Government and made a strong case for best practice in the implementation of the Petroleum Industry Act 2021.
Almona, however, regretted that less than a year into the signing of the Act, the implementation has suffered a flip-flop as some of the provisions of the Act are being suspended.
She said while the Chamber supports the full implementation of the PIA and the total deregulation of the oil and gas sector, it is, however, not insensitive to the plight of the masses that may feel the pains of some of the provisions like the removal of fuel subsidies.
The newspaper says that the Federal Government is targeting $40 billion private capital investments in digital infrastructure and facilitating the formation of up to $1 billion in private equity.
The government estimates public investment of N150 billion, according to National Development Plan 2021-2025 obtained by The Nation yesterday.
According to the document, the 2017-2020 period recorded increased investment in infrastructure development, higher internet penetration and technology start-ups.
“Nigeria accounts for over 29 per cent of all internet usage in Africa, and much of this internet access is via mobile devices, powered by service provision from telecommunication and internet service providers (ISPs).
“The contribution to GDP (gross domestic product) from these telecommunication and ISP companies increased from 1.0 per cent in 2003 to 11 per cent in 2020. Further, Nigeria’s mobile penetration has grown to over 80 per cent, and broadband penetration increased from 27 per cent in 2017 to 46 per cent in 2020,” the document stated.
Furthermore, the telecommunications sub-sector recorded a growth rate of 15.9 per cent. It is the highest growth rate in the last 10 years.
This strong growth was driven by the innovative activities of entrepreneurs, but also enabled by recently introduced policies which include the National Digital Economy Policy and Strategy (2020-2030), the Nigerian National Broadband Plan (2020-2025) and E-Government Masterplan to mention a few,”.
GIK/APA