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World Bank’s $2.5bn loan will hurt Nigeria’s economy – LCCI 

The LCCI has reacted to World Bank’s plans on disbursing another fresh loan of $2.5 billion or N767.3 billion to Nigeria.

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LCCI, CBN, Cashless policy, World Bank’s $2.5bn loan will hurt Nigeria’s economy - LCCI , LCCI to produce data on Nigeria’s economy , LCCI urges FG to create favourable economic policies to drive growth , LCCI wants taxes scrapped on solar equipment, says its alternative source to power 

The Lagos Chamber of Commerce and Industry (LCCI) has reacted to World Bank’s plans on disbursing another fresh loan of $2.5 billion or N767.3 billion to Nigeria saying it would further hurt the economy. 

The Director-General of LCCI, Muda Yusuf said that a fresh debt would be severe on Nigeria’s already fragile economy as it would hike the cost of debt servicing and stifle developmental projects. 

[READ MORE: LCCI calls for economy reform]

Recall that Nairametrics reported that Nigeria reportedly approached the World Bank for another loan of $2.5 after the last $2.4 billion given by the bank.

More details: According to Yusuf, another foreign loan could lead to high inflation rate, stunt gross domestic product growth and increase unemployment. 

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“With the World Bank saying it is in talks with Nigeria for a fresh loan of $2.5 billion, which coincided with the Debt Management Office’s announcement that the Federal Government would obtain an additional foreign loan to the tune of $2.7 billion (N824.82 billion)

“This development calls for concern bearing in mind that in three years, Nigeria’s debt profile rose from $10.32 billion in June 30, 2015 to $22.08 billion as of June 30, 2018. With this additional loan, the country’s foreign debt would increase and would invariably increase the overall debt portfolio of the country which stood at N24.39 trillion as at December 31, 2018. 

“Already, the Federal Government proposed to spend a total of N2.14 trillion on debt servicing in the 2019 fiscal year which is 27% of revenue. So this fresh World Bank loan will further increase sporadically the amount of that of 2020 to be dedicated for servicing debts.” Yusuf said. 

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While trying to proffer solutions, the LCCI boss explained that foreign loans were the reasons government could not channel more funds appropriately to developmental projects in the country since huge amounts were always provided for servicing debts. 

He, however, stated that the private sector was expecting government to cut down its debt and seek other ways of raising funds, by rigorously promoting new investments to increase revenue. 

Particularly, he believed that cost of governance in the country was still too high and should be reduced in order to free more revenue to run the country’s economy. 

Nigeria’s debt profileAs previously reported by Nairametrics, Nigeria’s rising debt has attracted wide criticisms both locally and internationally. For example, the International Monetary Fund (IMF) questioned Nigeria’s ability to repay its N24.9 trillion debt. 

Nigeria is largely faced with revenue shortfalls as the output and price of oil, fell in the past five years. 

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The IMF had also expressed concern about the rollover risks, arguing Nigeria’s capacity to refinance debt might drop in the future. 

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Meanwhile, the Federal Government has since rebuffed such claims, stating that the nation’s debt burden is sustainable. 

[READ ALSO: LCCI reacts to CBN’s new cashless policy, says time frame is disruptive]

The Federal Government also disclosed that Nigeria spent a whooping N1.11 trillion to cover debt service obligations in the first six months of the year 2019. 

More debt on the horizon as the Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed, disclosed that the sum of N1.7 trillion will be borrowed to finance the 2020 budget. 

 

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Coronavirus

COVID-19 Update in Nigeria

On the 29th of September 2020, 187 new confirmed cases were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,647 confirmed cases.

On the 29th of September 2020, 187 new confirmed cases were recorded in Nigeria, having carried out a total daily test of 2,549 samples across the country.

To date, 58,647 cases have been confirmed, 49,937 cases have been discharged and 1,111 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 509,555  tests have been carried out as of September 29th, 2020 compared to 507,006 tests a day earlier.

COVID-19 Case Updates- 29th September 2020,

  • Total Number of Cases – 58,647
  • Total Number Discharged – 49,937
  • Total Deaths – 1,111
  • Total Tests Carried out – 509,555

According to the NCDC, the 187 new cases were reported from 13 states- Lagos (74), Plateau (25), Rivers (25), Gombe (19), FCT (19), Osun (10), Kaduna (5), Borno (3), Ogun (2), Katsina (2), Nasarawa (1), Bayelsa (1), Edo (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,384, followed by Abuja (5,696), Plateau (3,425), Oyo (3,260), Edo (2,626), Kaduna (2,407), Rivers (2,395), Ogun (1,838), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,034), Abia (894), Gombe (883). Katsina (861), Osun (837),  Borno (745), and Bauchi (699).

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Imo State has recorded 568 cases, Benue (481), Nasarawa (450), Bayelsa (399),  Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (240), Anambra (237), Sokoto (162), Taraba (95), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

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The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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HealthPlus: More facts emerge as Bukky George reveals she owns 48.9%

HealthPlus insists its founder, Bukky George owns a majority share of HealthPlus Africa Holdings.

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HealthPlus: More facts emerge as Bukky George reveals she owns 48.9%

HealthPlus says that its founder and former CEO, Mrs. Bukky George, owns 48.9% of HealthPlus Africa Holdings and that she is the only Nigerian registered Pharmacist shareholder and director in the company.

This was revealed in a statement by HealthPlus on Tuesday, in a bid to educate the public on the squabbles going on between it and Alta Semper Capital over the removal of George as CEO, and the appointment of Chidi Okoro as Chief Transformation Officer.

Nairametrics had reported last week that HealthPlus Limited appointed Okoro as Chief Transformation Officer. According to the statement earlier released by the company, Okoro’s mission is to optimize day-to-day management and elevate the business to novel scale and profitability, while the founder of the Company, George continues to be a director and a shareholder.

READ: Sterling Bank gets CBN approval for restructuring

George however, issued a counter press release, denying that she had been removed as MD/CEO. According to her, the press release was not authorized by the company and was therefore false.

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Alta Semper, in a follow-up press release, alleged that the decision to remove Mrs. Bukky George “was made in full compliance with Nigerian laws, and follows a long and drawn-out process of engagement,” through which the Board sought to address multiple issues concerning the way the company was being managed.

Health Plus also reported Alta Semper directors to the police last week, as observed in a document seen by Nairametrics.

In today’s statement, HealthPlus said that it had partnered with Alta Semper Capital LLC UK in 2018 to inject fresh capital to grow the business.

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READ: Fairfax Africa Holdings enters purchase agreement with Helios Holdings Ltd 

“The investment in HealthPlus was to enable the company to capture the pent up demand for high quality yet affordable medicines … expand the company’s footprint across Nigeria, establish a distribution centre, develop B2B channels and e-commerce.

“Alta Semper undertook to commit $18 million into HealthPlus whilst retaining Mrs. Bukky Geroge as CEO,” the statement partly read.

READ: Deal: AIICO receives N5.3 billion investment from Leap Frog

HealthPlus says that Mrs. George, at the time of the investment, transferred 95% ownership of the business to a new entity called HealthPlus Africa Holdings Limited, incorporated in Mauritius, whilst retaining 5% equity to her name.

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“HealthPlus Africa Holdings is owned by Mrs. Bukky George (46.2%) and Idi Holdings ( 53.8%), Idi Holdings is Alta Semper’s investment vehicle”

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“In essence, Mrs. Bukky George owns (directly and indirectly) 48.9% of HealthPlus and is the only Nigerian registered Pharmacist shareholder and director in the company.”

READ: Naspers has finalised its mode of exit from Multichoice

HealthPlus also said that Alta Semper’s initial $10 million investment achieved several initiatives in its business plan.

“However, it soon appeared that they (Alta Semper) were unable to come up with the balance of the equity investment.”

It argued that in May 2020, after 15 months of delayed funding, unmet expectations and dwindling inventory, “Mrs Bukky George instituted legal action at the Lagos Division of the Federal high Court [in suit No: FHC/L/CS/609/2020] seeking relief aimed at stopping Alta Semper from running and managing the company.”

HealthPlus says after Alta Semper was served the court process, they did not file any defense but appealed for dispute mediation.

It was added in the statement that the mediation was truncated after 3 meetings within a period of 3 months, “Their intransigence frustrated Mrs. George’s other nominee for director and Chairman into resigning from the board”

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HealthPlus’ statement cited that the board, now with just 3 directors, had not met in six months and that the last time Mrs. George heard from Alta Semper was when they wrote last week stating her termination as CEO, “which in fact they had no authority or power to do so.”

HealthPlus says Mrs. Bukky George remains the founder and CEO, and continues to run the company.

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CBN launches framework for advancing women’s financial inclusion in Nigeria

The CBN in collaboration with EFInA has launched a framework to advance women’s financial inclusion.

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CBN, Aishah Ahmad,

The Central Bank of Nigeria on September 29, 2020, virtually launched the framework of advancing women’s financial inclusion. This was disclosed in an online event tagged “Access to Finance Framework for Women” and anchored by Dr Paul Olukpe.

The framework was conceptualized by the Financial Inclusion Special Intervention Working group and developed by the CBN in collaboration with EFInA and Women’s World Banking with input from over 50 stakeholder institutions.

The overarching vision of the framework is for Nigeria to be globally recognized, with an inclusive financial sector that has closed the gender gap by 2024. The framework further itemizes 8 strategic imperatives for driving improved access to finance for women in Nigeria.

In the online event monitored by Nairametrics, the Deputy Governor, Financial System Stability of the Central Bank of Nigeria, Mrs. Aisha Ahmad justified the new initiative by citing EFInA’s last report on financial inclusion in 2018 as a yardstick.

(READ MORE: Banks’ loans to private sector increase by N3.50 trillion in one year – CBN)

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Recall that EFInA 2018 Financial Inclusion report indicated gender imbalance and a clear need to attend to the issue of growing female financial exclusion. For example, the report stated that 40.9% of females were financially excluded as against 32.5% of males. Mrs. Ahmad remarked that perhaps, the figures might even be wider if unattended to especially in this period of crisis.

Mrs. Ahmad urged financial institutions to address structural issues limiting women’s access to finance by understanding and developing products that are specifically tailored to address such issues.

Why this matters

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Empirical studies have shown that supporting a stronger role or empowering women is a key enabler in reducing poverty, stimulating economic growth and ensuring sustainable development. Citing ‘’The Power Parity Report by McKinsey’’, the Director of development finance department of CBN, Mr Yusuf Philip Yila, stated that the economic consequences of pursuing gender equality include a potential addition of $28trillion to global annual GDP by 2025.

This framework is a big boost to achieving SDG’s goal of gender equality and Nigeria’s financial inclusion targets simultaneously.

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