Headlines
Fuel Subsidy Causing Deterioration in Nigeria’s Fiscal Balance,IMF Says

By Derrick Bangura
The International Monetary Fund (IMF) on Thursday maintained that prolonged payment of petrol subsidy in Nigeria was affecting the country’s fiscal balance despite revenue increase from rise in global oil price.
The Washington-based institution stated this in its latest Regional Economic Outlook for Sub-Saharan Africa titled: “A New Shock and Little Room to Maneuver,” released yesterday.
It stated: “Net commodity exporters can receive fiscal windfalls only if they contain subsidy expenditures. For example, some oil exporters provide expensive and generalised energy subsidies to the domestic population which could lead to a deterioration in fiscal balances despite the revenue increase associated with higher export prices in Nigeria.
“Therefore, removing generalised subsidies is crucial to ensure that the rise in commodity prices generates fiscal savings. It is then essential that these savings are directed largely to strengthening fiscal sustainability supported by strong governance frameworks, given the precarious conditions faced by many countries.”
The fund reiterated that the country’s foreign exchange policy was weighing on its growth, distorting investment, encouraging rent seeking. It also noted uncertainties in the Nigerian economy.
The multilateral institution also pointed out that Nigeria’s growth was stronger than anticipated due to increase in manufacturing and agriculture.
“For countries with limited reserves, authorities have sometimes offered favorable rates, including to specific sectors. But the resulting parallel market for foreign exchange in Nigeria and Zimbabwe can weigh on growth distorting investment, encouraging rent seeking, and adding to uncertainty.
“The decision to return to a more unified framework is often difficult, but experience suggests that the shift to a market-clearing official rate is not in itself likely to lead to a sharp increase in inflation, as prices in the real economy tend to reflect the less-favorable parallel exchange rate; and removing exchange-market distortions can give a substantial boost to development, by reducing uncertainty and strengthening competitiveness.
“In this regard, the exchange reform implemented in South Sudan last year prompted a significant appreciation of the parallel market rate, helping to reduce inflation and insulating the country from rising global food prices,” it added.
The report further reiterated that Nigeria’s economic growth was expected to reach 3.4 percent in 2022, falling back to 2.9 per cent from 2024 onwards.
It added: “Nigeria’s growth outlook has improved through higher oil prices and a stronger-than-anticipated recovery of manufacturing and agriculture. Growth is expected to reach 3.4 percent in 2022, falling back to 2.9 percent from 2024 onwards.
“The outlook is subject to high uncertainty associated with oil prices and financial conditions. Moreover, low vaccination rates, rising security risks, and elevated price pressures weigh negatively on the medium-term growth outlook. Diversification away from oil will be critical to raise growth potential sustainably and reduce volatility.”
On his part, the Director of the IMF’s African Department Abebe Aemro Selassie, while speaking on the report during a virtual media briefing at the ongoing IMF/World Bank spring meeting yesterday, noted that the recovery in sub-Saharan Africa picked up in the third quarter of 2021 and held up despite the onset of a fourth COVID-19 wave at the end of the year.
He said Sub-Saharan Africa’s estimated growth in 2021 had been revised upward from 3.7 per cent to 4.5 per cent.
He said: “Higher oil prices may generate a windfall gain for the region’s 8 oil exporters. But for the other 37 countries, they will worsen trade imbalances and increase living costs.
“Indeed, over the past couple of months we have increased our inflation projections significantly lifting the regional average for 2022 by a full four percentage points, and representing the worst outcome since 2008.
“This year, eleven countries will face double digit inflation; almost all of these have flexible exchange rates, and almost half of these are fragile.
“For most countries, the new crisis comes at an extremely difficult time as the COVID-19 pandemic enters its third year, fiscal and international buffers are already under strain, and policy space is limited.
“Looking beyond the pandemic and current geopolitical tensions, creating jobs and meeting the Sustainable Development Goals will require strong, inclusive, and sustainable growth in sub-Saharan Africa.”
Headlines
Akwa Ibom APC Gears Up to Receive President Tinubu as Governor Umo Eno Joins Party

The All Progressives Congress (APC) in Akwa Ibom State has announced its readiness to host President Bola Ahmed Tinubu and other top party leaders as it officially welcomes Governor Umo Eno into its ranks.
Speaking at a press briefing in Uyo on Friday, APC chieftain and former presidential aide, Senator Ita Enang, disclosed that the party was fully prepared to receive the president, Vice President Kashim Shettima, APC National Chairman, and governors elected on the party’s platform for the historic reception.
Governor Umo Eno had on June 6 formally defected from the Peoples Democratic Party (PDP) to the APC, in a move widely described as a political game-changer in Akwa Ibom.
Enang, a former Special Assistant to the President on National Assembly and Niger Delta Affairs, said the governor’s defection had effectively aligned the state with the central government.
He assured Governor Eno and his supporters that the APC would embrace them wholeheartedly and honour all agreements reached.
“As progressives, we shall work with the governor and his supporters to ensure that they fit into the party without hitches,” Enang stated. “We will also work with them to align programmes of the state government with the ideals and manifesto of the party.”
He further described the governor’s move as a “merger” that promises significant benefits for Akwa Ibom and its citizens.
The planned reception is expected to mark a major political event in the state, signaling a realignment of forces ahead of future elections.
Headlines
Ekiti Launches Aggressive Anti-Flood Campaign, Dredges Ofigba River

The Ekiti State Government has intensified efforts to prevent flooding across the state with the launch of a comprehensive dredging campaign, targeting critical waterways in both rural and urban areas.
Chairman of the Ekiti State Environmental Protection Agency (EKSEPA), Chief Bamitale Oguntoyinbo, disclosed this on Friday during an inspection visit to the ongoing dredging project at the Ofigba River in Ise-Ekiti.
Oguntoyinbo, who was accompanied by EKSEPA board members, said the visit was to assess the progress of work being carried out to mitigate flood risks in the community. He expressed satisfaction with the pace and quality of the dredging work.
“I and other board members of EKSEPA are delighted with the level of job done by the site engineer because he is actually working with the directives of three-kilometer dredging of waterways,” he said.
According to him, the dredging commenced on June 4, and so far, 1.8 kilometers of the river have been successfully cleared.
He applauded Governor Biodun Oyebanji for prioritizing the safety and welfare of residents by initiating the state-wide anti-flooding campaign.
“I want to commend our amiable governor, Mr. Biodun Oyebanji, for embarking on zero tolerance campaign against flooding in every community and town in Ekiti,” Oguntoyinbo stated.
He also praised the General Manager of EKSEPA, Mr. Olukayode Adunmo, for his commitment to the project’s supervision and success.
In his remarks, Adunmo emphasized the urgent need to clear waterways choked by refuse, which impede water flow and contribute to flooding during the rainy season.
“Dredging of Ofigba River in Ise-Ekiti in Ise/Orun Local Government Area is necessary because some of the waterways have been blocked by refuse,” he explained. “There is the need for us to remove every blockage to enhance free flow of water and avert flooding during heavy rainfall.”
Adunmo also commended Governor Oyebanji for taking proactive steps to protect lives and properties across the state.
Residents of Ise-Ekiti have welcomed the government’s intervention. Chief Godwin Ojo, a community leader, expressed gratitude to the governor for his timely action.
“We thank the governor for the move to avert flooding in our community,” Ojo said. “May God grant him more wisdom to pilot the affairs of the state to an enviable height.”
The dredging campaign forms part of the Oyebanji administration’s broader commitment to environmental safety and disaster prevention.
Developmental
Tinubu to visit Kaduna Thursday to inaugurate key projects

President Bola Tinubu is expected in Kaduna State Today Thursday for the inauguration of several key developmental projects executed by the administration of Gov. Uba Sani.
The News Agency of Nigeria (NAN) reports that the visit forms part of activities marking Sani’s two years in office.
The projects lined up for inauguration include the 300-bed Specialist Hospital in Millennium City, Kaduna, built by the state government to bolster the provision of healthcare services.
Tinubu will also inaugurate the Institute of Vocational Training and Skills Development in Rigachikun, road projects in Soba, and Samaru Kataf LGA’S as well as the 24-kilometre Kafanchan Township Road.
Others are the Tudun Biri Road, the 22km road linking Kauru and Kubau LGAs as well as the Vocational and Skills Training Centre in Tudun Biri.
Tinubu is also expected to unveil 100 Compressed Natural Gas (CNG) buses, as part of efforts to modernise the state’s public transportation system.
The projects are part of the administration’s focus on infrastructurde evelopment, healthcare delivery, youths empowerment, and economic growth.
The state government described the visit as a significant moment for the people of Kaduna and an opportunity to showcase ongoing efforts to transform the state through impactful governance.
Sani, who marked his second year in office this month, has prioritised human capital development, rural infrastructure, and jobs creation since taking office in 2023.
Tinubu’s visit to Kaduna State was rescheduled from Wednesday to Thursday.
He was initially supposed to visit Kaduna on Wednesday, but due to the recent attacks in Benue, he shifted his trip.
The president visited Benue on Wednesday to commiserate with the victims of the recent attacks and assess the humanitarian crisis.
During his visit to Benue, Tinubu met with stakeholders, including traditional rulers, political and community leaders, and youth groups, to seek lasting solutions to the hostilities.
He also condemned the ongoing violence and called on the residents to embrace peace and mutual understanding.
NAN recalls that the Benue Government had declared a work-free day for Tinubu’s visit, urging the residents to turn out in large numbers to welcome him.
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