*World Bank seeks more transparent debt management
![image](/2020/10/lawreport.jpg")
The federal government is about concluding negotiations with
China Exim Bank on the financing of some rail projects in the
country, including the Katsina-Kano-Maradi line and the Ibadan-Kano
rail line, among others.
![image](/2021/01/payne-alex.jpg")
However, a World Bank economist has raised the alarm that most
African countries are in trouble because many debts were contracted
in a non-transparent way, stressing that countries needed to
strengthen capacity to manage the increasingly risky debt more
transparently.
Minister of Finance, Budget and National Planning, Mrs. Zainab
Ahmed, said yesterday during the virtual opening ceremony of
Nigeria Finance Online, co-hosted with the Nigerian Investment
Promotion Commission (NIPC), that the projects were part of
President Muhammadu Buhari’s plan to boost infrastructural
development.
The federal government had said recently that it earmarked N12.6
trillion for the construction of four standard gauge rail lines in
different parts of the country in 2021, including the
Kano-Katsina-Maradi border rail line.
Minister of Transportation, Hon. Rotimi Amaechi, said the
projects, to be financed through budgetary and counterpart funding,
were aimed at achieving intermodal transportation nationwide.
He listed the projects to include the construction of the 378km
single-track standard gauge rail line traversing
Kano–Katsina–Jibiya with a 20km extension to the commercial border
town of Maradi in the Niger Republic and a branch line, Kano-Dutse,
adding that they will be funded through foreign loans already being
negotiated by Ahmed.
But speaking on the projects, Ahmed stated that aside from the
$2.4 billion infrastructure company that has just been floated by
the federal government, the rail projects, which will be executed
by the China Civil Engineering Construction Corporation (CCECC),
will expand the economy and lift Nigerians out of poverty.
She said: “With respect to infrastructural development, there
are several projects being executed within the country as we speak.
We are currently at the final stage of negotiations with China Exim
Bank for the financing of the Ibadan-Kano section of the Lagos rail
line, which will significantly boost trade across Nigeria and in
the continent of Africa.
“We are also at the final stage of negotiations of financing for
another rail line for not just the Ibadan-Kano one but also the
Lagos-Kano rail line which will significantly boost activities and
an additional rail line that will pass through Katsina-Kano, going
up to Maradi in Niger Republic to open up trade relations with our
neighbours.
“Furthermore, the president recently approved the creation of a
$2.4 billion infrastructure company which will accelerate the
development of infrastructure in the country.”
Ahmed expressed pleasure that the Nigerian economy exited
recession in the last quarter of 2020 with a Gross Domestic Product
(GDP) growth of 0.11 per cent, after two consecutive sessions
brought about by COVID-19.
She added that it is an indication that the policies and
programmes that Buhari and his team put together are achieving the
desired results.
She expressed the federal government’s commitment to ensuring
that the economy continues on the current growth trajectory through
the execution of various reform policies and strategies designed to
stimulate and sustain its recovery.
She identified one of such policies as the Nigerian Economic
Sustainability Plan (NESP), developed as a strategic response to
COVID-19 challenges.
According to her, the policy contributed to the recovery of the
economy through the creation and deployment of financial stimulus
package, provision of support for Micro, Small and Medium
Enterprises and the creation of jobs.
The minister said the medium-term expenditure framework, the
annual budget and more recently the Finance Act of 2020 had been
deployed to support the economy in 2021.
She stated that for instance, the Finance Act of 2020 introduced
over 80 amendments to 14 different laws, which are focused on
fiscal incentives to stimulate the business and economic recovery
and growth, stressing that the new law does not impose any new
taxes.
Ahmed stated that Nigeria remains Africa’s largest economy and
also its choice destination on the continent for investors and
development partners, adding that the federal government is working
to fix the infrastructure gap and enhance the ease of doing
business for investors.
In his comments, the World Bank Chief Economist, Africa, Dr.
Albert Zeufack, said the taxation of land and property as a way of
broadening the tax base instead of solely focusing on demand taxes
like Value Added Taxes (VAT) or expanding the net to the informal
sector, should be encouraged.
He added that most African countries are in trouble because many
debts were contracted in a non-transparent way.
He stated that countries needed to strengthen their capacity to
manage the increasingly risky debt more transparently.
“For countries like Nigeria which are rich in extractives,
managing commodity resource revenue more transparently is very key.
We need to improve transparency, stem illicit financial flows and
tax evasion. It’s not just about what debt can do.
“There are a number of policy reforms that can be done. On the
expenditure side, there’s a need to reprioritise and I am sure the
government may be doing that. We need to improve efficiency, public
investment management in a way to select those that have high
returns,” he said.
Zeufack called for the strengthening of institutions and
investment in people to accelerate Africa’s economic recovery,
saying that in Sub-Saharan Africa, digital infrastructure is still
weak.
Also speaking, the Director of Monetary Policy, Central Bank of
Nigeria (CBN), Dr Hassan Mahmud, stated that to achieve growth, the
bank was working to get a stable exchange rate, interest rates and
others.
He explained that although the exchange rate was outside the
control of the CBN, tools were being deployed to manage price and
monetary stability.
Mahmud stated that the bank was aware that inflation could wipe
out the incomes of Nigerians, adding that inflation numbers are
critical to the CBN’s monetary policy mandate.
*World Bank seeks more transparent debt management
The federal government is about concluding negotiations with
China Exim Bank on the financing of some rail projects in the
country, including the Katsina-Kano-Maradi line and the Ibadan-Kano
rail line, among others.
However, a World Bank economist has raised the alarm that most
African countries are in trouble because many debts were contracted
in a non-transparent way, stressing that countries needed to
strengthen capacity to manage the increasingly risky debt more
transparently.
Minister of Finance, Budget and National Planning, Mrs. Zainab
Ahmed, said yesterday during the virtual opening ceremony of
Nigeria Finance Online, co-hosted with the Nigerian Investment
Promotion Commission (NIPC), that the projects were part of
President Muhammadu Buhari’s plan to boost infrastructural
development.
The federal government had said recently that it earmarked N12.6
trillion for the construction of four standard gauge rail lines in
different parts of the country in 2021, including the
Kano-Katsina-Maradi border rail line.
Minister of Transportation, Hon. Rotimi Amaechi, said the
projects, to be financed through budgetary and counterpart funding,
were aimed at achieving intermodal transportation nationwide.
He listed the projects to include the construction of the 378km
single-track standard gauge rail line traversing
Kano–Katsina–Jibiya with a 20km extension to the commercial border
town of Maradi in the Niger Republic and a branch line, Kano-Dutse,
adding that they will be funded through foreign loans already being
negotiated by Ahmed.
But speaking on the projects, Ahmed stated that aside from the
$2.4 billion infrastructure company that has just been floated by
the federal government, the rail projects, which will be executed
by the China Civil Engineering Construction Corporation (CCECC),
will expand the economy and lift Nigerians out of poverty.
She said: “With respect to infrastructural development, there
are several projects being executed within the country as we speak.
We are currently at the final stage of negotiations with China Exim
Bank for the financing of the Ibadan-Kano section of the Lagos rail
line, which will significantly boost trade across Nigeria and in
the continent of Africa.
“We are also at the final stage of negotiations of financing for
another rail line for not just the Ibadan-Kano one but also the
Lagos-Kano rail line which will significantly boost activities and
an additional rail line that will pass through Katsina-Kano, going
up to Maradi in Niger Republic to open up trade relations with our
neighbours.
“Furthermore, the president recently approved the creation of a
$2.4 billion infrastructure company which will accelerate the
development of infrastructure in the country.”
Ahmed expressed pleasure that the Nigerian economy exited
recession in the last quarter of 2020 with a Gross Domestic Product
(GDP) growth of 0.11 per cent, after two consecutive sessions
brought about by COVID-19.
She added that it is an indication that the policies and
programmes that Buhari and his team put together are achieving the
desired results.
She expressed the federal government’s commitment to ensuring
that the economy continues on the current growth trajectory through
the execution of various reform policies and strategies designed to
stimulate and sustain its recovery.
She identified one of such policies as the Nigerian Economic
Sustainability Plan (NESP), developed as a strategic response to
COVID-19 challenges.
According to her, the policy contributed to the recovery of the
economy through the creation and deployment of financial stimulus
package, provision of support for Micro, Small and Medium
Enterprises and the creation of jobs.
The minister said the medium-term expenditure framework, the
annual budget and more recently the Finance Act of 2020 had been
deployed to support the economy in 2021.
She stated that for instance, the Finance Act of 2020 introduced
over 80 amendments to 14 different laws, which are focused on
fiscal incentives to stimulate the business and economic recovery
and growth, stressing that the new law does not impose any new
taxes.
Ahmed stated that Nigeria remains Africa’s largest economy and
also its choice destination on the continent for investors and
development partners, adding that the federal government is working
to fix the infrastructure gap and enhance the ease of doing
business for investors.
In his comments, the World Bank Chief Economist, Africa, Dr.
Albert Zeufack, said the taxation of land and property as a way of
broadening the tax base instead of solely focusing on demand taxes
like Value Added Taxes (VAT) or expanding the net to the informal
sector, should be encouraged.
He added that most African countries are in trouble because many
debts were contracted in a non-transparent way.
He stated that countries needed to strengthen their capacity to
manage the increasingly risky debt more transparently.
“For countries like Nigeria which are rich in extractives,
managing commodity resource revenue more transparently is very key.
We need to improve transparency, stem illicit financial flows and
tax evasion. It’s not just about what debt can do.
“There are a number of policy reforms that can be done. On the
expenditure side, there’s a need to reprioritise and I am sure the
government may be doing that. We need to improve efficiency, public
investment management in a way to select those that have high
returns,” he said.
Zeufack called for the strengthening of institutions and
investment in people to accelerate Africa’s economic recovery,
saying that in Sub-Saharan Africa, digital infrastructure is still
weak.
Also speaking, the Director of Monetary Policy, Central Bank of
Nigeria (CBN), Dr Hassan Mahmud, stated that to achieve growth, the
bank was working to get a stable exchange rate, interest rates and
others.
He explained that although the exchange rate was outside the
control of the CBN, tools were being deployed to manage price and
monetary stability.
Mahmud stated that the bank was aware that inflation could wipe
out the incomes of Nigerians, adding that inflation numbers are
critical to the CBN’s monetary policy mandate.