27 Aug

Daily Watch – Economy slows, State workers to get paid

  • Nigeria’s economic growth slowed sharply in the second quarter as lower crude prices took their toll. Growth dropped to 2.4 percent from 6.5 percent a year earlier. Oil production, which fell to 2.05 million barrels per day from 2.21 million during the period accounts for more than 90 percent of forex earnings and about 70 percent of government revenue. The fall in crude prices and output hurt Nigeria’s finances and its naira currency, with foreign investors pulling out of the stock and bond markets.
  • The CBN has approved the request by Deposit Money Banks to provide financial accommodation to state governments to enable them to pay the backlog of workers’ salaries. The conditions for accessing the loan facility include State Executive Council authorization, state House of Assembly consent to the loan package, as well as issuance of Irrevocable Standing Payment Order (ISPO) to ensure timely repayment. Out of the 27 states involved, funds have been disbursed to Zamfara and Kwara states that met the requirements as agreed with their respective banks.
  • The review of subsisting remuneration packages of political office holders will be ready next month, says Elias Mbam, chairman of the Revenue Mobilization, Allocation and Fiscal Commission. The review which will reflect the economic realities of the drop in oil prices, will ensure that no member of the National Assembly, earns up to N1 million per month. The review will cover the National Assembly, Judiciary as well as the state legislature and local government executives.
  • Heritage Bank Limited has sealed its merger deal with Enterprise Bank Limited, the merger will see its branch network leapfrog from 15 to over 200 branches. The CBN has now granted final approval for the deal, and the Federal High Court has sanctioned the scheme of merger and ordered the merger of both institutions.