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Economy & Politics

Lagos sets up N1 billion seed capital for hospitality sector, rolls out optical fibre across the state

Sanwo-Olu said that this seed capital will be domiciled in the Lagos State Employment Trust Fund.

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The Lagos State Governor, Babajide Sanwo-Olu, has announced the approval of a N1 billion seed capital for investment in the tourism and hospitality sector in the state. The N1 billion seed capital is to help drive new growth in that sector

This was announced during his meeting with business leaders in the state, at an event tagged, ‘BOS Meets Business,’ which was held at the Banquet Hall in the State House, Alausa Ikeja.

The Governor said that the investment was needed to support/strengthen the hospitality sector by providing key operators in the tourism business with soft loans to boost their capacity in driving growth. The governor said the initiative is necessary to position the tourism business as a new frontier for job creation and economic prosperity in the post Coronavirus era.

READ ALSO: A look at projects in Lagos State that may suffer after Ambode’s exit

Sanwo-Olu said that this seed capital will be domiciled in the Lagos State Employment Trust Fund (LSETF), adding that the funds will be made available specifically to Micro, Small and Medium (MSMEs) operators in the sector

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The Governor also said that the Lagos State Government would be collaborating with the Central Bank of Nigeria (CBN) to further create access to funds to support the hospitality business.

Meanwhile, Governor Sanwo-Olu further disclosed that the state has concluded arrangements to provide technological infrastructure to support MSMEs by commencing installation of the first phase of the 6,000km optical fibre across the state.

READ ALSO: Lagos State Government orders building owners to conduct structural stability tests

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He pointed out that the state had continued to improve on its ease of doing business policies to drive private investment and economic growth. This he said is made possible by the digitization of business registration and asset acquisition processes, which has removed administrative bottlenecks.

“We have just given approval for N1 billion support that will be given out through the Lagos State Employment Trust Fund to support hospitality business in the State. The beneficiaries of this fund will go through screening in line with the requirement of the agency. We are making this investment because of the huge potential for job creation and inclusive growth this sector can bring about.’

“We will be working with the CBN for more funding to fully develop the potential of our tourism sector. This effort is being completed with the rolling out of 3,000 km optical fibre across the State to provide technological infrastructure for the MSMEs whose operations would depend on fast Internet networks to drive their businesses,” the Governor said.

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He said this is the time for Lagos state to strengthen its economy which has a GDP valued at $130 billion and over 3 million MSMEs. The strengthening will come in the form of good policies for accelerated growth and prosperity. He also noted that the state is the 4th wealthiest city in Africa.

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This policy and incentive for the hospitality sector by the Lagos State government will come as a huge relief for the small and medium scale operators in the industry which has been one of the worst-hit by the Coronavirus pandemic.

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READ ALSO: You can now track loans on LSETF website

The businesses in the sector have witnessed a lot of shutdown with loss of revenue and laying off of staff.

 

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

1 Comment

1 Comment

  1. aremu akinloye

    July 31, 2020 at 3:10 am

    What a wonderful development at a period lagosians are trying to seek a chance to recover from the plight of business sicknesses and the pioneering stake in the global relevance. I pray for the impartation of God’s hands and touch with the government.

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Economy & Politics

Senate approves issuance of N148bn promissory notes to Bayelsa, 4 others

Promissory notes worth N148,141,969,161.24 has been approved by the Senate as refund to Bayelsa, Cross River, Ondo, Osun and Rivers States

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Senate approves issuance of promissory notes worth N148 billion as a refund to five states

Promissory notes worth N148.141billion have been approved by the Senate as a refund to Bayelsa, Cross River, Ondo, Osun, and Rivers States for projects executed on behalf of the Federal Government.

The approval which was given by the Senate at the plenary on Tuesday, 24th November 2020, came after the presentation of a report by the Committee on Local and Foreign Debts, led by Senator Ordia Clifford (PDP-Edo).

READ: Banks to lose interest on petrol subsidy-induced loans

According to a news report by NAN, this is a go-ahead to the Federal Government, who had sought the approval of the Senate for issuance of promissory notes for a refund on federal projects executed by State governments.

The request was contained in a letter addressed to President of Senate, Dr. Ahmad Lawan by President Muhammadu Buhari, and read at plenary. The Senate referred the matter to the Committee on Local and Foreign Debts for further legislative input.

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(READ MORE: FG inaugurates steering committee on Covid-19 economic recovery)

Senator Ordia Clifford, while presenting the report of the committee, said the Permanent Secretary, Federal Ministry of Finance; Federal Commissioners of Finance and Works in the five states, had briefed the committee on details of the projects.

He said the Committee was presented with documents relating to the approvals of the Federal Government through the Federal Ministry of Works and Housing for the execution of the projects and certificates of completion, amongst other documents.

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READ: Boosting IGR; A necessity for states to avoid total dependence on FAAC allocations

At the plenary today, Senator Ordia moved the motion that the Senate approves the Committee’s recommendations by approving the issuance of the promissory notes to the State governments.

According to him, the amount due to the five states is N148.14billion.

  • Bayelsa was allotted N38.40billion
  • Cross River was allotted N18.39billion
  • Ondo was allotted N7.82billion
  • Osun was allotted N4.57billion
  • Rivers was allotted N78.95billion

What they are saying

The President of the Senate, Ahmad Lawan, disclosed that records showed PDP states had the highest refund, he said: “If you look at the list of states, only two are APC states and they have the least in terms of refund, this is fantastic and a mark of leadership by the Federal Government. This shows tolerance and leadership by this administration.”

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Economy & Politics

CBN retains MPR at 11.5%, holds other parameters constant

The Central Bank of Nigeria (CBN), voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5%.

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The Monetary Policy Committee (MPC), of the Central Bank of Nigeria (CBN), has voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5%.

This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday. Other parameters such as Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor remain unchanged.

READ: Central Bank says monetary policy not to blame for rising food cost

Highlights of the Committee’s decision

  • MPR was kept at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • While Liquid Ratio was also kept at 30%

READ: Polaris Bank: Back from the dead

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The Committee noted that inflation continued to be driven by supply-side disruptions arising from the COVID-19 pandemic and other legacy factors. Key amongst these are the security challenges in parts of the country; the increase in food prices; and the recent hike in the pump price of PMS and electricity tariff.

READ: Our view on CBN’s revision of SDF guidelines by CSL Capitals

The MPC emphasized the need to address structural supply-side issues putting upward pressure on costs of production and unemployment.

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Meanwhile, to address the public health crisis associated with the COVID-19 pandemic, the Committee urged the Federal Government to make relentless effort to procure a substantial quantity of the COVID-19 vaccines to surmount the public health crisis and pave the way for a broader macroeconomic recovery.

READ: CBN reviews minimum interest rates on savings deposit to 1.25%

The Governor highlighted that the current economic recession had been anticipated by the monetary and fiscal authorities, which prompted them to put measures in place to quicken the reversion.  The Committee, however, noted that the economic contraction had bottomed out in Q3 2020 since it moderated significantly from -6.1% recorded in Q2 2020 to -3.62%.

What this means

The decision of the Central Bank to retain the monetary policy, despite a rise in inflationary pressure, indicates that the apex bank aims to expand credit to the real sector at low-interest rates.

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This action will hope to boost production, increase business activities in the country, and also increase consumer spending.

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Economy & Politics

Gov. Makinde presents N266 billion budget to Oyo State House of Assembly

Governor Seyi Makinde has presented a ₦266.64billion budget proposal to the Oyo State House of Assembly.

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Gov. Makinde presents N266 billion budget to Oyo State House of Assembly

The Oyo State Governor, Seyi Makinde, presented the Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly. The total budgeted sum is ₦266.64billion, with education expected to receive N56.35billion – 21% of the budget and a rise from N12 billion budgeted in 2019.

This was disclosed by Governor Makinde in a social media post on Monday.

READ: Oyo State IGR increased by over 26% without increasing tax burden – Gov Makinde

According to NAN, Mr. Makinde disclosed on social media that the ‘Budget of Continued Consolidation’ was prepared with input from stakeholders in all seven geopolitical zones of the state.

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The total budgeted sum is ₦266.64billion The Recurrent Expenditure is ₦136.26billion, while the Capital Expenditure is ₦130.38billion. We are again, aiming for at least 70% implementation of the budget,” he said.

READ: Edo State to build Museum, set for more Benin Bronze returns in 2021

The News Agency of Nigeria also disclosed that infrastructure spending in the budget would be N46.06billion – representing 17.27% of the total budget and an increase of N33.66 billion over that of last year.

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Other sectors include Agriculture which represents 3.6% valued at N9.58billion and Healthcare taking 4.9% of the budget with an N13.29billion allocation.

(READ MORE: #EndSARS: Nothing wrong with social media bill – Ali Ndume)

The Governor disclosed that Oyo has reduced its infrastructure deficit and made improvements in the areas of healthcare, education, and others.

We have been able to lower our infrastructural deficit, make improvements in healthcare delivery, improve the quality of education, and achieve milestones in our security systems,” he said.

He also added that the state had recorded a 26% increase in IGR at N25.6 billion and hopes to increase IGR to over N100 billion for the 2021 budget.

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READ: Restructuting: Plans must pass through legal process from the National Assembly – Tambuwal

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As of September, we had recorded an IGR of N25.6 billion. And using the half-year figures, it represented a 26.4% increase in IGR year-on-year. Oyo State’s IGR is presently about 32% of actual aggregate revenue.

“We still have not achieved a total dependence on the state’s income outside of the federal allocation to fund the budget. Slowly, but surely, we are getting there.

READ: Snap to pay video creators $1 million daily

“For the 2021 budget, our plan is to increase our annual IGR to N102.82billion. We hope to achieve this by widening the tax net to bring in more taxpayers into the system,”  he added.

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