In one of the first concrete plans on economic direction of Africa's biggest economy, new VP says stimulating the economy, and not cut backs the key.
NIGERIA plans to create a $25 billion fund with public and private financing to modernise infrastructure and avoid a recession, Vice President Yemi Osinbajo said.

The halving of oil prices since last year has forced Nigeria, Africa’s largest producer of crude, to slash its budget and contributed to a weaker currency. Standard & Poor’s downgraded its credit rating, while JPMorgan Chase & Co. removed Nigeria from its local-currency emerging market indexes.

“We think that the way out of this, what some have described as an impending recession, is actually to spend rather than to cut back in any way,” Osinbajo, 58, said in an interview on Tuesday in the capital, Abuja.

Economic growth slowed to 2.35% in the second quarter of 2015, according to Nigeria’s national statistics agency, the lowest this decade, as falling income from crude exports and foreign-exchange shortages hit businesses. The nation relies on oil for about two-thirds of government spending and 90% of its export income.
Osinbajo was a lawyer in the commercial capital, Lagos, until his surprise inclusion as the running mate of former military ruler Muhammadu Buhari on the ticket of the opposition All Progressives Congress party. They took office in May after defeating the incumbent, Goodluck Jonathan, and his Peoples Democratic Party in the first democratic handover of power from one party to another in Africa’s most populous nation.

The Buhari administration plans to target investment toward improving a power supply system that leaves tens of millions of households without grid electricity for hours each day, as well as modernising roads, rail transportation and agriculture, Osinbajo said.

‘Bankable projects’
Boosting agricultural output in a fertile nation that has become one of the world’s biggest importers of rice will both save foreign-exchange outlays and create jobs. The government is looking to make the West African country self-sufficient in rice production in about 24 months, he said.

“A lot of those projects will be bankable projects, because we’re looking at projects that will interest private sector investors as well, but they are strategic for us,” Osinbajo said.

In the face of declining oil revenue, central bank Governor Godwin Emefiele has resisted pressure from investors and fellow policy makers to devalue the naira. Instead, he imposed exchange-rate controls in February that Osinbajo described as “largely successful” and “inevitable in the short term” in an effort to stem the outflow of reserves.

Reserves have dropped to about $30 billion, down from almost $40 billion a year ago, while the naira has weakened about 8% against the dollar since the start of the year.

Osinbajo said he understands that portfolio investors aren’t pleased about the trading restrictions on the currency, which have led to a slowdown in capital market inflows.

The government is “mindful that we maintain foreign- exchange reserves so at least that we are able to keep investor confidence high, especially direct investment,” he said.
http://m.mgafrica.com/article/2015-10-21-nigeria-plans-to-beat-impending-recession-by-spending-a-25-billion-war-chest-is-on-the-cards
Cc lalasticlala

Ok good one

Not sure about new infrastructure...revamping and modernizing already existing ones seems a better idea

Just make sure say anything una do favour all of us.

asha80:
Not sure about new infrastructure...revamping and modernizing already existing ones seems a better idea

Can you revamp what you don't already possess

Can you enumerate what we have now?

Ideally Buhari would get the $25bn from looters - sweet!

You have started singing another music which your principal will soon deny, like the one you sang in buses and conferences about feeding the school children and providing jobs through that venture. Let the hypnotised ones dance. Until something happens, I'm not taking you serious. I'm waiting for VP El-rofayi to say what PMB is planning.

modath:



Can you revamp what you don't already possess

Can you enumerate what we have now?

I mean things like dilapidated rds and rail and existing airports cannot be regarded as new infrastructure can they?

asha80:
I mean things like dilapidated rds and rail and existing airports cannot be regarded as new infrastructure can they?

What airport Are our airports what can be called standard airports??

They need to be diregarded & new ones built instead, like MM2 ...

Even Nnamdi Azikiwe Airport Abuja is not being revamped, rather a new one is being constructed right beside it..

As for trains, the world has gone beyond locomotives..

SenseiX:
In one of the first concrete plans on economic direction of Africa's biggest economy, new VP says stimulating the economy, and not cut backs the key.
NIGERIA plans to create a $25 billion fund with public and private financing to modernise infrastructure and avoid a recession, Vice President Yemi Osinbajo said.

The halving of oil prices since last year has forced Nigeria, Africa’s largest producer of crude, to slash its budget and contributed to a weaker currency. Standard & Poor’s downgraded its credit rating, while JPMorgan Chase & Co. removed Nigeria from its local-currency emerging market indexes.

“We think that the way out of this, what some have described as an impending recession, is actually to spend rather than to cut back in any way,” Osinbajo, 58, said in an interview on Tuesday in the capital, Abuja.

Economic growth slowed to 2.35% in the second quarter of 2015, according to Nigeria’s national statistics agency, the lowest this decade, as falling income from crude exports and foreign-exchange shortages hit businesses. The nation relies on oil for about two-thirds of government spending and 90% of its export income.
Osinbajo was a lawyer in the commercial capital, Lagos, until his surprise inclusion as the running mate of former military ruler Muhammadu Buhari on the ticket of the opposition All Progressives Congress party. They took office in May after defeating the incumbent, Goodluck Jonathan, and his Peoples Democratic Party in the first democratic handover of power from one party to another in Africa’s most populous nation.

The Buhari administration plans to target investment toward improving a power supply system that leaves tens of millions of households without grid electricity for hours each day, as well as modernising roads, rail transportation and agriculture, Osinbajo said.

‘Bankable projects’
Boosting agricultural output in a fertile nation that has become one of the world’s biggest importers of rice will both save foreign-exchange outlays and create jobs. The government is looking to make the West African country self-sufficient in rice production in about 24 months, he said.

“A lot of those projects will be bankable projects, because we’re looking at projects that will interest private sector investors as well, but they are strategic for us,” Osinbajo said.

In the face of declining oil revenue, central bank Governor Godwin Emefiele has resisted pressure from investors and fellow policy makers to devalue the naira. Instead, he imposed exchange-rate controls in February that Osinbajo described as “largely successful” and “inevitable in the short term” in an effort to stem the outflow of reserves.

Reserves have dropped to about $30 billion, down from almost $40 billion a year ago, while the naira has weakened about 8% against the dollar since the start of the year.

Osinbajo said he understands that portfolio investors aren’t pleased about the trading restrictions on the currency, which have led to a slowdown in capital market inflows.

The government is “mindful that we maintain foreign- exchange reserves so at least that we are able to keep investor confidence high, especially direct investment,” he said.
http://m.mgafrica.com/article/2015-10-21-nigeria-plans-to-beat-impending-recession-by-spending-a-25-billion-war-chest-is-on-the-cards
Cc lalasticlala

If this is true I say a big congratulations to we Engineers because no existing Construction companies will be idle for the next 8-10years and this also will give birth to a new construction companies.

Can't wait to see Nigeria competing with other developed states in infrastructure.

"Infrastructure determines the growth of a nation"

modath:


What airport Are our airports what can be called standard airports??

They need to be diregarded & new ones built instead, like MM2 ...

Even Nnamdi Azikiwe Airport Abuja is not being revamped, rather a new one is being constructed right beside it..

As for trains, the world has gone beyond locomotives..

I also wrote modernized ..in developed world more often than not infrastructure are continuously upgraded and modernized and not totally discarded and new ones built

Emusan:


If this is true I say a big congratulations to we Engineers because no existing Construction companies will be idle for the next 8-10years and this also will give birth to a new construction companies.

Can't wait to see Nigeria competing with other developed states in infrastructure.

"Infrastructure determines the growth of a nation"

pray almighty corruption does not enter the picture

asha80:
I also wrote modernized ..in developed world more often than not infrastructure are continuously upgraded and modernized and not totally discarded and new ones built

Please Let's kill this argument, I have been in international airports in 3 different continents, done 2 local airports outside our shores, taken the subway & modern trains, WE DON'T HAVE ANYTHING worth refurbishing or upgrading....

It's like removing the roof of a bungalow with a plan to add three additional storeys on top,

Where are the PILLARS & FOUNDATION to support the extra weight??

We don't have infrastructures..

The 3 airports that CNN deem the worst in nigeria are the only 3 I know & I heard the others are worse!!!

We are way way below our potential!!!

Exactly what we've been clamouring for. Massive infrastructure will not only provide jobs and position the nation to attract investors but also boost our local contents in terms of engineering.

At best, all our infrastructures are either dead or outdated. Past government failed to realised that fixing infrastructural deficits is one guarantee way of displaying the seriousness of governance. Instead, recurrent expenses gulp most of the money meant for structural development.

Good sign I tell you of good things to come. All we can pray for is to ensure we get enough private investors that will take interest in this partnership. This is foresight and leadership that must be supported.

@asha, please stop mentioning refurbishment. What is there to refurbish? As it is now, this government is starting afresh because we can't point out to one infrastructural base that's worthy of refurbishment, except you haven't travelled out to assess development. If we must compete and be at par with the rest developed world economically, then we must discard these anciently built roads, rail lines, air ports and so on. The world has moved on hope you know that?

advocates:
Exactly what we've been clamouring for. Massive infrastructure will not only provide jobs and position the nation to attract investors but also boost our local contents in terms of engineering.

At best, all our infrastructures are either dead or outdated. Past government failed to realised that fixing infrastructural deficits is one guarantee way of displaying the seriousness of governance. Instead, recurrent expenses gulp most of the money meant for structural development.

Good sign I tell you of good things to come. All we can pray for is to ensure we get enough private investors that will take interest in this partnership. This is foresight and leadership that must be supported.

@asha, please stop mentioning refurbishment. What is there to refurbish? As it is now, this government is starting afresh because we can't point out to one infrastructure base that's worthy of refurbishment, except you haven't travelled out to assess development. If we must compete and be at par with the rest developed world, then we must discard these anciently built roads, rail lines, air ports and so on.

if that is the case then 25bn dollars might not be enough

Noted

asha80:
if that is the case then 25bn dollars might not be enough

Agree. But 25b dollars not naira will go some miles to place us among emerging economy. What foreign investors want is seriousness, commitment and consistency, once that is established, it become a lot easier to have them want to partner without necessarily wooing them.

Cc lalasticlala