29 Jan

Daily Watch – Buhari “yet to be convinced” about Naira devaluation, GE brings $200 million to power sector

  • GE is currently investing $200 million in Nigeria to build two facilities to assemble oil and gas and power generation equipment that the company hopes to export to other West African nations. A senior official of the company, Jay Ireland, believes that Nigeria’s current economic woes, including lower prices for oil that produces 80% of government revenue and the slump in the value of the naira, are positives for investors. The company currently has a staff strength of 500 people in Nigeria.
  • The Federal Government expects the N50 stamp duty on bank customers to bring in N66.1 billion in revenues this year. CBN governor, Godwin Emefiele also said that the government is exploring opportunities to boost the revenue base of the country in the era of falling oil prices. The 2016, 2017, 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper as captured in the 2016 Budget under the non-oil revenue section, shows that the Federal Government projects to make N66.1billion from stamp duty alone. Revenue from the non-oil section is also expected to grow to N71.8 billion in 2017 and to N78.5 billion in 2018.
  • President Muhammadu Buhari has again said that he is yet to be convinced that Nigeria and its people will derive any tangible benefit from an official devaluation of the Naira. Speaking at a meeting with Nigerians living in Kenya, President Buhari maintained that while export-driven economies could benefit from devaluation of their currencies, devaluation will only result in further inflation and hardship for the poor and middle classes in Nigeria’s import-dependent economy. The president added that he had no intention of bringing further hardship on the country’s poor who, he said, have suffered enough already.