Nigeria’s portfolio investment is expected to decline by at least $11.4 billion, as the coronavirus disease eats deep into the fabric of the most populous black nation’s economy. This was disclosed in the International Monetary Fund report seen by Nairametrics.
In the report, the global lender stated that the nation’s portfolio investment would drop from the $9 billion recorded in 2019 to a deficit of $2.4 billion by the end of 2020.
Portfolio investments are in the form of a group of assets, including transactions in equity, securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures. They are passive investments, as they do not entail active management or control of the issuing company. Unlike, Foreign Direct Investment (FDI), foreign investors here have a relatively short-term interest in the ownership of these passive investments.
On Tuesday, IMF had approved a sum of $3.4 billion via a Rapid Financial Instrument to Nigeria. The loans come at a period when countries across the world are battling with the Covid-19 pandemic and the crash in crude oil prices.
Shedding more light on what the future holds for the Nigerian economy, IMF explained that the liquidity based indicators of the nation remain a concern, as they make Nigeria’s low debt-to-GDP ratio highly vulnerable to shocks. Some of the liquidity based indicators that remain a concern for IMF are the Cash Reserve Ratio (CRR), which several Nigerian banks had frowned at, Loan Deposit Ratio (LDR), and money supply (M2). It stated:
“Public debt is projected to remain sustainable under a variety of shocks, albeit liquidity based indicators remain a concern and make Nigeria’s low debt-to-GDP ratio highly vulnerable to shocks. Under staff’s baseline, public debt will increase to 34.8% of GDP in 2020 (including the RFI purchases), would reach 37.4% in 2022 and come down to 36.3% in 2025, significantly below most emerging market peers’ debt levels.
“These risks are partially mitigated after accounting for extra-budgetary revenue (as the authorities currently plan to stop some of the earmarked funds for certain activities, such as the Road Fund or Tobacco Fund) and state and local government revenue; access to these resources in the case of an emergency would allow the ratio to remain high but manageable at between 20 to 30%.”
Also, the global lender added that the nation’s oil and gas exports are expected to decline by at least $26.5 billion, as it warned that Nigeria remained exposed to rising risks, particularly in oil markets. “Rising unsold cargoes could also impact oil production, which could decline further through OPEC agreed cuts or if prices persist below production costs,” the IMF said.
In its request letter to the IMF, Nigeria included its plans to implement a “more unified and flexible exchange rate regime.” This, according to the country, would increase its revenue to 15% of GDP and move to cost-reflective electricity tariffs by 2021.
The letter, which was signed by the Minister of Finance and the Central Bank of Nigeria’s Governor, also stated that a new fuel price regime, outlined in March, would permanently eliminate costly fuel subsidies. The subsidies cost an estimated 10 trillion naira ($27.78 billion) from 2006 to 2018.
With uncertainties in economic indices and parameters, a Council Member, Nigerian Stock Exchange, (NSE), Adebayo Ajayi, agree with IMF that the nation would witness dearth of FPI in 2020.
In an interview with Nairametrics, he explained that the state of the nation’s foreign reserve and the value of crude oil are major attractions of foreign investors to the country. He said,
“With the depleting reserve and ridiculous crude oil price, there is no way Nigeria would not lose foreign investors in 2020, except the government, introduced capital controls, which no one prays for, as investors prefer free entry and free exit. Without any micro change, no FPI for us. The equity market felt the impact a few weeks back when several foreign investors sold their stakes and left the bourse the bourse.
“The way out for the nation is to come up with an international commodity that would be in high demand across the globe immediately after COVID-19, as that would attract FPIs to the country. Anything out of that, 2020 will be a year of no FPIs.”
In all, Nigerians and observers can’t wait to see the defence of the Federal Government or the CBN, and their assurances that the nation would be out of the woods sooner than expected.
COVID-19 Update in Nigeria
On the 4th of August 2020, 304 new confirmed cases and 14 deaths were recorded in Nigeria.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 44,433 confirmed cases.
On the 4th of August 2020, 304 new confirmed cases and 14 deaths were recorded in Nigeria, having carried out a total daily test of 1,601 samples across the country.
To date, 44,433 cases have been confirmed, 31,851 cases have been discharged and 910 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 289,133 tests have been carried out as of August 3rd, 2020 compared to 287,532 tests a day earlier.
COVID-19 Case Updates- 4th August 2020,
- Total Number of Cases – 44,433
- Total Number Discharged – 31,851
- Total Deaths – 910
- Total Tests Carried out – 289,133
According to the NCDC, the 304 new cases are reported from 19 states- FCT (90), Lagos (59), Ondo (39), Taraba (18), Rivers (17), Borno (15), Adamawa (12), Oyo (11), Delta (9), Edo (6), Bauchi (4), Kwara (4), Ogun (4), Osun (4), Bayelsa (3), Plateau (3), Niger (3), Nasarawa (2) and Kano (1)
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 15,414, followed by Abuja (4,087), Oyo (2,782), Edo (2,317), Rivers (1,859), Kano (1,598), Delta (1,529), Kaduna (1,498), Ogun (1,411), Plateau and Ondo (1,243), Enugu (846), Ebonyi (808), Kwara (790), Katsina (746), Borno (628), Gombe (620), Abia (602), Osun (584), and Bauchi (565).
Imo State has recorded 469 cases, Benue (356), Bayelsa (342), Nasarawa (341), Jigawa (322), Niger (226), Akwa Ibom (221), Adamawa (176), Sokoto (154), Ekiti (152), Anambra (135), Kebbi (90), Zamfara (77), Taraba (72), Yobe (67), Cross River (58), while Kogi state has recorded 5 cases only.
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.
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.
|Date||Confirmed case||New cases||Total deaths||New deaths||Total recovery||Active cases||Critical cases|
|August 4, 2020||44433||304||910||14||31851||11672||7|
|August 3, 2020||44129||288||896||8||20663||22570||7|
|August 2, 2020||43841||304||888||5||20308||22645||7|
|August 1, 2020||43537||386||883||4||20287||22567||7|
|July 31, 2020||43151||462||879||1||19565||22707||7|
|July 30, 2020||42689||481||878||5||19270||22541||7|
|July 29, 2020||42208||404||873||5||19004||22331||7|
|July 28, 2020||41804||624||868||8||18764||22172||7|
|July 27, 2020||41180||648||860||2||18203||22117||7|
|July 26, 2020||40532||555||858||2||17374||22300||7|
|July 25, 2020||39977||438||856||11||16948||22173||7|
|July 24, 2020||39539||591||845||12||16559||22135||7|
|July 23, 2020||38948||604||833||20||16061||22054||7|
|July 22, 2020||38344||543||813||8||15815||21716||7|
|July 21, 2020||37801||576||805||4||15677||21319||7|
|July 20, 2020||37225||562||801||12||15333||21091||7|
|July 19, 2020||36663||556||789||11||15105||20769||7|
|July 18, 2020||36107||653||778||6||14938||20391||7|
|July 17, 2020||35454||600||772||3||14633||20049||7|
|July 16, 2020||34854||595||769||9||14292||19793||7|
|July 15, 2020||34259||643||760||6||13999||19500||7|
|July 14, 2020||33616||463||754||10||13792||19070||7|
|July 13, 2020||33153||595||744||4||13671||18738||7|
|July 12, 2020||32558||571||740||16||13447||18371||7|
|July 11, 2020||31987||664||724||15||13103||18160||7|
|July 10, 2020||31323||575||709||20||12795||17819||7|
|July 9, 2020||30748||499||689||5||12546||17513||7|
|July 8, 2020||30249||460||684||15||12373||17192||7|
|July 7, 2020||29789||503||669||15||12108||17012||7|
|July 6, 2020||29286||575||654||9||11828||16804||7|
|July 5, 2020||28711||544||645||11||11665||16401||7|
|July 4, 2020||28167||603||634||6||11462||16071||7|
|July 3, 2020||27564||454||628||12||11069||15867||7|
|July 2, 2020||27110||626||616||13||10801||15693||7|
|July 1, 2020||26484||790||603||13||10152||15729||7|
|June 30, 2020||25694||561||590||17||9746||15358||7|
|June 29, 2020||25133||566||573||8||9402||15158||7|
|June 28, 2020||24867||490||565||7||9007||14995||7|
|June 27, 2020||24077||779||558||4||8625||14894||7|
|June 26, 2020||23298||684||554||5||8253||14491||7|
|June 25, 2020||22614||594||549||7||7822||14243||7|
|June 24, 2020||22020||649||542||9||7613||13865||7|
|June 23, 2020||21371||452||533||8||7338||13500||7|
|June 22, 2020||20919||675||525||7||7109||13285||7|
|June 21, 2020||20242||436||518||12||6879||12847||7|
|June 20, 2020||19808||661||506||19||6718||12584||7|
|June 19, 2020||19147||667||487||12||6581||12079||7|
|June 18, 2020||18480||745||475||6||6307||11698||7|
|June 17, 2020||17735||587||469||14||5967||11299||7|
|June 16, 2020||17148||490||455||31||5623||11070||7|
|June 15, 2020||16658||573||424||4||5349||10885||7|
|June 14, 2020||16085||403||420||13||5220||10445||7|
|June 13, 2020||15682||501||407||8||5101||10174||7|
|June 12, 2020||15181||627||399||12||4891||9891||7|
|June 11, 2020||14554||681||387||5||4494||9673||7|
|June 10, 2020||13873||409||382||17||4351||9140||7|
|June 9, 2020||13464||663||365||4||4206||8893||7|
|June 8, 2020||12801||315||361||7||4040||8400||7|
|June 7, 2020||12486||260||354||12||3959||8173||7|
|June 6, 2020||12233||389||342||9||3826||8065||7|
|June 5, 2020||11844||328||333||10||3696||7815||7|
|June 4, 2020||11516||350||323||8||3535||7646||7|
|June 3, 2020||11166||348||315||1||3329||7522||7|
|June 2, 2020||10819||241||314||15||3239||7266||7|
|June 1, 2020||10578||416||299||12||3122||7157||9|
|May 31, 2020||10162||307||287||14||3007||6868||7|
|May 30, 2020||9855||553||273||12||2856||6726||7|
|May 29, 2020||9302||387||261||2||2697||6344||7|
|May 28, 2020||8915||182||259||5||2592||6064||7|
|May 27, 2020||8733||389||254||5||2501||5978||7|
|May 26, 2020||8344||276||249||16||2385||5710||7|
|May 25, 2020||8068||229||233||7||2311||5524||7|
|May 24, 2020||7839||313||226||5||2263||5360||7|
|May 23, 2020||7526||265||221||0||2174||5131||7|
|May 22, 2020||7261||245||221||10||2007||5033||7|
|May 21, 2020||7016||339||211||11||1907||4898||7|
|May 20, 2020||6677||284||200||8||1840||4637||7|
|May 19, 2020||6401||226||192||1||1734||4475||7|
|May 18, 2020||6175||216||191||9||1644||4340||7|
|May 17, 2020||5959||388||182||6||1594||4183||7|
|May 16, 2020||5621||176||176||5||1472||3973||7|
|May 15, 2020||5445||288||171||3||1320||3954||4|
|May 14, 2020||5162||193||168||3||1180||3815||4|
|May 13, 2020||4971||184||164||6||1070||3737||4|
|May 12, 2020||4787||146||158||6||959||3670||4|
|May 11, 2020||4641||242||152||10||902||3589||4|
|May 10, 2020||4399||248||142||17||778||3479||4|
|May 9, 2020||4151||239||127||11||745||3278||4|
|May 8, 2020||3912||386||118||10||679||3115||4|
|May 7, 2020||3526||381||108||4||601||2818||4|
|May 6, 2020||3145||195||104||5||534||2507||1|
|May 5, 2020||2950||148||99||5||481||2370||4|
|May 4, 2020||2802||245||94||6||417||2291||2|
|May 3, 2020||2558||170||88||2||400||2070||2|
|May 2, 2020||2388||220||86||17||351||1952||2|
|May 1, 2020||2170||238||69||10||351||1751||2|
|April 30, 2020||1932||204||59||7||317||1556||2|
|April 29, 2020||1728||196||52||7||307||1369||2|
|April 28, 2020||1532||195||45||4||255||1232||2|
|April 27, 2020||1337||64||41||0||255||994||2|
|April 26, 2020||1273||91||41||5||239||994||2|
|April 25, 2020||1182||87||36||3||222||925||2|
|April 24, 2020||1095||114||33||1||208||855||2|
|April 23, 2020||981||108||32||3||197||753||2|
|April 22, 2020||873||91||29||3||197||648||2|
|April 21, 2020||782||117||26||3||197||560||2|
|April 20, 2020||665||38||23||1||188||466||2|
|April 19, 2020||627||86||22||2||170||436||2|
|April 18, 2020||541||48||20||2||166||356||2|
|April 17, 2020||493||51||18||4||159||317||2|
|April 16, 2020||442||35||13||1||152||277||2|
|April 15, 2020||407||34||12||1||128||267||2|
|April 14, 2020||373||30||11||1||99||263||2|
|April 13, 2020||343||20||10||0||91||242||2|
|April 12, 2020||323||5||10||0||85||228||2|
|April 11, 2020||318||13||10||3||70||238||2|
|April 10, 2020||305||17||7||0||58||240||2|
|April 9, 2020||288||14||7||1||51||230||2|
|April 8, 2020||274||22||6||0||44||226||2|
|April 7, 2020||254||16||6||1||44||204||2|
|April 6, 2020||238||6||5||0||35||198||2|
|April 5, 2020||232||18||5||1||33||194||2|
|April 4, 2020||214||5||4||0||25||185||0|
|April 3, 2020||209||25||4||2||25||180||0|
|April 2, 2020||184||10||2||0||20||162||0|
|April 1, 2020||174||35||2||0||9||163||0|
|March 31, 2020||139||8||2||0||9||128||0|
|March 30, 2020||131||20||2||1||8||121||0|
|March 29, 2020||111||22||1||0||3||107||0|
|March 28, 2020||89||19||1||0||3||85||0|
|March 27, 2020||70||5||1||0||3||66||0|
|March 26, 2020||65||14||1||0||2||62||0|
|March 25, 2020||51||7||1||0||2||48||0|
|March 24, 2020||44||4||1||0||2||41||0|
|March 23, 2020||40||10||1||1||2||37||0|
|March 22, 2020||30||8||0||0||2||28||0|
|March 21, 2020||22||10||0||0||1||21||0|
|March 20, 2020||12||4||0||0||1||11||0|
|March 19, 2020||8||0||0||0||1||7||0|
|March 18, 2020||8||5||0||0||1||7||0|
|March 17, 2020||3||1||0||0||0||3||0|
|March 16, 2020||2||0||0||0||0||2||0|
|March 15, 2020||2||0||0||0||0||2||0|
|March 14, 2020||2||0||0||0||0||2||0|
|March 13, 2020||2||0||0||0||0||2||0|
|March 12, 2020||2||0||0||0||0||2||0|
|March 11, 2020||2||0||0||0||0||2||0|
|March 10, 2020||2||0||0||0||0||2||0|
|March 9, 2020||2||1||0||0||0||2||0|
|March 8, 2020||1||0||0||0||0||1||0|
|March 7, 2020||1||0||0||0||0||1||0|
|March 6, 2020||1||0||0||0||0||1||0|
|March 5, 2020||1||0||0||0||0||1||0|
|March 4, 2020||1||0||0||0||0||1||0|
|March 3, 2020||1||0||0||0||0||1||0|
|March 2, 2020||1||0||0||0||0||1||0|
|March 1, 2020||1||0||0||0||0||1||0|
|February 29, 2020||1||0||0||0||0||1||0|
|February 28, 2020||1||1||0||0||0||1||0|
COVID-19: WHO warns there may never be an immediate solution to the virus
WHO urged governments and citizens to focus on known basic steps to contain the pandemic.
The World Health Organization (WHO) has warned that there might not be an immediate solution or cure to the COVID-19 pandemic despite the positive outcomes at the different levels of trials of vaccines for the virus.
The WHO said that despite strong hopes for a vaccine, there might never be a silver bullet for COVID-19, and the road to normality would be long.
According to the latest data, the coronavirus pandemic has infected over 18.1 million people with more than 690,000 fatalities globally since late January, when the virus was first reported. This is just as some countries that thought they worst was over for them started experiencing a second wave of outbreak.
The Director-General of the WHO, Tedros Adhanom Ghebreyesus, and Mike Ryan, WHO head of emergencies, urged governments and citizens to focus on known basic steps to contain the pandemic such as testing, contact tracing, maintaining physical distance and putting on a mask.
Tedros in a virtual news briefing in Geneva, said, ‘’The message to people and governments is clear, Do it all. He said face masks should become a symbol of solidarity around the world. A number of vaccines are now in phase three clinical trials and we all hope to have a number of effective vaccines that can help prevent people from infection. However, there’s no silver bullet at the moment, and there might never be.’’
The WHO officials revealed that an advanced investigation team that was sent to China where the virus started, are not yet back. The UN health agency sent an epidemiologist and an animal health specialist to China on July 10 to lay the groundwork for a probe aimed at identifying how the virus entered the human species.
Tedros said WHO and Chinese experts had agreed on the terms of reference and a programme of work for a WHO-led international team of scientists and researchers from around the world. They are to study the origins of the virus in the city of Wuhan.
The WHO boss encouraged mothers to continue breastfeeding even if they had COVID-19, as the benefits outweigh the risks associated with infection.
Tedros also said the international hunt for a vaccine has been historic against the backdrop of the coronavirus disease being the biggest global health emergency since the early 20th century.
Tedros said, ‘’There are many vaccines under trial, a couple in the final stage of clinical trials – and there is hope. It does not mean that we will have the vaccine, but at least the speed with which we reached the level we reached now is unprecedented.”
“There are concerns that we may not have a vaccine that may work or its protection could be for just a few months, not more. But until we finish the clinical trials, we will not know.”
Lagos state lists conditions that must be met by churches, mosques before reopening
The government specified that the conditions must be met for worship centres to open.
The Lagos State Government has introduced some measures and conditions that must be met/fulfiled by all religious centres and places of worships that are planning to reopen, following further relaxation of lockdown.
These measures were contained in a press statement that was issued by the Lagos State Governor, Babajide Sanwo-Olu, and seen by Nairametrics.
Nairametrics had reported that the Lagos State Governor on Saturday, August 1, during his 17th briefing on the state’s COVID-19 response, announced the reopening of worship centres with effect from August 7th. Now, the Lagos State Government has specified that the following conditions must be met for worship centres that are planning to open;
- Only regular services/gatherings are permitted to hold. Night vigils and other non-regular programmes remain prohibited until further notice.
- Attendees above 65 years are strongly discouraged from attending worship services.
- Consider holding services and gatherings in large, well-ventilated areas or outdoors, as circumstances and faith tradition allow.
- No face mask, no entry policy, must be maintained throughout the duration of the services.
- Regular cleaning and disinfection of facilities must be carried out to maintain clean and hygienic environments before and after every service.
- Appropriate screening equipment for COVID-19 symptoms such as a contactless temperature check must be available for entrants into the facility.
- It is mandatory to provide hand-washing facilities and sanitizers at the entry and exit point of the premises.
- National emergency response phone lines must be displayed prominently on the premises.
- Handshakes, hugs and high fives are not permitted at services or gatherings and this should be emphasized by displaying appropriate signs prominently.
- The use of stationary collection boxes and electronic methods for collection of the offering must be encouraged.
- The flow of human traffic in and out of these places of worship must be conducted in an organized and orderly manner.
The Governor urged Lagosians to fully comply with the measures outlined in the new regulations, stressing that Lagos State Safety Commission has a statutory responsibility to monitor the activities and operations of all organizations and worship centres that have been permitted to re-open.
*COVID-19* : Measures taken by the Lagos State Government to further relax the lockdown.@jidesanwoolu @drobafemihamzat @gbenga_omo @gboyegaakosile @Mr_JAGss#LASG #ForAGreaterLagos #LagosAgainstCovid19 pic.twitter.com/0t8ti49wYz
— The Lagos State Govt (@followlasg) August 2, 2020