Connect with us
nairametrics
UBA ads

Business News

LCCI condemns Senate over Buhari’s $22.7 billion loan approval

Lagos Chamber of Commerce and Industry (LCCI) has condemned the Nigerian Senate’s decision to approve President Muhammadu Buhari’s loan request.

Published

on

LCCI, NECA warn FG on endangering productivity of Nigerians, LCCI DG offers equity financing as solution to President Buhari’s cravings for loan

Lagos Chamber of Commerce and Industry (LCCI) has condemned the Nigerian Senate’s decision to approve President Muhammadu Buhari’s loan request.

On Thursday, March 5, 2020, the 9th Senate under the leadership of Ahmed Lawan, gave a nod to the president’s request despite being earlier disapproved by the 8th Senate, which was under the leadership of Bukola Sarai.

UBA ADS
Unemployment: Senate calls for a state of emergency, President Buhari approves N37 billion for National Assembly renovation , National Assembly finally transmits Finance Bill after supremacy battle among lawmakers, VAT: Implementation won’t affect purchasing power of Nigerians, PIB: An unsurmountable obstacle?

Senate President, Ahmed Lawan

In his reaction to the development, Director General (DG), LCCI, Dr Muda Yusuf said the loan had brought the country’s total debt stock to $108 billion, even though 15% of the debts were owed by state governments.

[READ MORE: Senate orders investigation of banks over withholding tax non-remittances)

GTBank 728 x 90

Yusuf said“The growing national debt is a cause for concern as the debt profile grew from N12.6 trillion in 2015 to N26.2 trillion in the third quarter, 2019, an increase of 108%.

“An additional $22.7 billion borrowing would bring the total debt stock to $108 billion, although 15% of the debts are owed by the state governments.”

The LCCI boss also raised concern over the country’s capacity to sustain her debt servicing.

onebank728 x 90

He added that “The debt service provision in the 2019 budget was a whooping N2 trillion, whereas the total capital budget was N2.9 trillion. This implies that the debt service commitment was 70% of the capital budget allocation.

“Debt to revenue ratio was about 30%, which is also on the high side. In the 2020 budget, the total revenue could barely cover debt service commitment and recurrent spending.

“The opportunity cost of high debt service commitment for the economy and citizens is very high.”

app
GTBank 728 x 90

What you should know: Last year, precisely between January and November 2019, the Buhari-led administration spent no less than $1.31 billion to service Nigeria’s external debt. This is according to data obtained from the Central Bank of Nigeria (CBN).

READ ALSO: Debt servicing gulps N7.04 trillion under President Buhari’s administration

The data has it that the figure stood at $1.31 billion, compared to $1.47 billion in the corresponding period of 2018.

Patricia

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]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Corporate Press Releases

Meristem features Nike Okundaye in Campaign titled “The Journey”, highlights the importance for partners

Meristem taps into Okundaye’s creative energy, highlighting the shared story of growth and collaboration.

Published

on

It has been a long journey for financial services provider, Meristem Nigeria, having started out as a boutique stockbroking firm over 16 years ago and morphing into a capital market conglomerate offering an array of diversified service and product offerings. The tale is similar for the art and culture doyen, Nike Okundaye-Davies whose humble beginning in traditional weaving and dying practice annealed her to the art world and art lovers.

At a graceful age of 70, she has achieved over 102 solo art exhibitions, 36 group art exhibitions, a permanent display of two of her works in the Smithsonian National Museum of African Art, a Harvard recognition and many other global acclaims. With four (4) art galleries spread across the country, and the Lagos center being the biggest art gallery in West Africa, she once told a Forbes journalist that her dreams are driven by careful financial planning as she reinvests at least two-thirds of her income in her business and art centers.

UBA ADS

Meristem taps into her creative energy in this campaign, highlighting the shared story of growth and collaboration for both institutions, and the need to onboard the right partners to achieve long term financial goals and investment security.

Meristem, a capital market conglomerate and diversified financial services provider offering stockbroking, wealth management, asset management, trustee services and financial advisory. Over the past 16 years, Meristem has been consistent in value creation and innovation within the capital market space. The Nigerian stock exchange awarded Meristem as the best digital broker of the year. In 2018 also, Meristem became the first Nigerian asset management firm to attain compliance with the Global Investment Performance Standards (GIPS) by the CFA Institute. In 2017, Meristem handled the single largest trade in the history of the Nigerian Stock Exchange.

GTBank 728 x 90

 

Patricia
Continue Reading

Around the World

Shell considers relocating its headquarters to the UK

Royal Dutch Shell has consistently pushed for the Dutch Government to stop taxes on dividends.

Published

on

GLOBAL GAS vs SHELL: COURT SETS ASIDE AWARD OVER BREACH OF CONTRACT, Investors, shareholders shocked as Shell reduces dividend

Oil and gas giant, the Royal Dutch Shell, is considering moving its corporate headquarters from The Netherlands to Britain. This could be a move against the implementation of dividend tax in The Netherlands.

The move was disclosed by the oil company’s Chief Executive Officer, Ben Van Beurden, during an interview with a Dutch newspaper on Saturday, July 4, 2020. According to him, the oil giant is not ruling out relocating its headquarters from the Netherlands to Britain. He said:

UBA ADS

You always need to keep thinking. Nothing is permanent and of course we will look at the business climate. But moving your headquarters is not a trivial measure. You cannot think too lightly about that.”

Further confirming the Chief Executive Officer’s comment, a Shell spokesman told Reuters that the oil giant is looking at ways to simplify its dual structure, as it had been doing for many years.

Royal Dutch Shell has consistently pushed for the Dutch Government to stop the tax on dividend paid to shareholders, as this makes financing dividend, share buy-backs and acquisition a lot more difficult.

GTBank 728 x 90

An earlier attempt by the Dutch Government to stop the dividend tax as an incentive to convince Unilever to unify its dual structure in Rotterdam, was met with an outcry by the public, who see that as a gift to rich foreigners.

It can be recalled that Shell had announced a few days ago that it might likely write down between $15 billion-$22 billion in post impairment charges for the second quarter of 2020. The impairment, which is its largest since the merger with Shell Transport and Trading Company Ltd in 2005, shows the huge adverse impact that the coronavirus pandemic has had on the oil giant’s businesses.

Also, in a move that shocked investors, Shell for the first time since the Second World War, cut down the dividend that it paid to its shareholders by two-thirds due to the negative impact of the pandemic. The decision came as a surprise to many including shareholders of the oil company which is by far the biggest payer of dividend in the FTSE 100.

onebank728 x 90

Patricia
Continue Reading

Coronavirus

Governor David Umahi of Ebonyi tests positive for COVID-19

Umahi has directed those who worked in the budget review for 2020 to immediately test for COVID-19.

Published

on

David Umahi, Ebonyi State workers will not get salaries for this reason

The Governor of Ebonyi State, David Umahi has tested positive for COVID-19, reported on Saturday afternoon.

Umahi’s Special Assistant on Media, Mr. Francis Nwaze, confirmed the news and also revealed that some associates of the governor also tested positive.

UBA ADS

He also said that the Governor is not showing any symptoms of the disease, though he has isolated himself in line with the NCDC protocols.

“The governor has directed his Deputy, Dr Kelechi, to coordinate the state’s fight against the disease and appealed to the citizens to take the NCDC protocols seriously.

READ MORE: Governors may push for 42% of federal allocation in new sharing formula

GTBank 728 x 90

“He will currently be working from ‘home’ and will be conducting all meetings virtually,” Nwaze added.

David Umahi becomes the sixth Nigerian governor to test positive for the disease, Governors of Kaduna, El- Rufai, Bauchi, Bala Mohammed and Oyo, Seyi Makinde have fully recovered while the recent cases have been the Governors of Ondo, Rotimi Akeredolu and Delta, Ifeanyi Okowa.

On Thursday, Governor Umahi announced that the state’s Executive Council was finalizing the budget review required by World Bank and said “most us broke down and are being treated of malaria.”

onebank728 x 90

Download the Nairametrics News App

He also directed those who worked in the budget review for 2020 to immediately test for COVID-19 and admitted he is expecting a second test result after he initially tested negative in March.

app
GTBank 728 x 90
Patricia
Continue Reading