28 Nov

Daily Watch – New figures highlight #Budget2017 funding gap, Lagos spends 30% of its time in traffic

  • Nigeria could suffer a revenue shortfall of US$9.18 billion in its 2017 budget, if the country is unable to boost crude oil exports above 1.6 million barrels per day that is scheduled for exports in January 2017, according to loading cargoes seen by Reuters. The January 2017 loading figure is 600,000 barrels below Nigeria’s target production of 2.2 mbpd, which the 2017 budget is based on. Consequently, if the country can’t ramp up production as from February, then revenue projections in the 2017 budget could be jeopardised even before the budget is presented to the National Assembly on December 1. 
  • The Dangote Group has concluded plans to build a 250,000 metric tonnes capacity rice mill in Kano, as part the company’s move to key into the government’s effort to make Nigeria self-sufficient in rice production. The company also said the 2.8 million tonnes per annum fertiliser manufacturing plant under construction in Lagos state will come on stream next year. Halima Dangote, an executive director at the company made this disclosure weekend during the ‘Dangote Day’ at the ongoing 43rd Kano International Trade Fair. She stated that the development of the two manufacturing entities is geared at supporting the move by the Federal and Kano State Governments to rejuvenate agricultural production in the country. “It is our intention to establish a large-scale rice mill of 250,000 tonnes per annum capacity here in Kano, to process rice production in the three states of Kano, Zamfara, and Sokoto,” she said. Halima said the Dangote Group will continue to invest in projects that have the potential to create value, jobs, and income distribution for the country.
  • The total number of inactive bank accounts in Nigeria now stands at 30.26 million despite efforts by banks to retain old customers and attract new ones. The accounts, activated by commercial banks for new holders but later abandoned to dormancy by the customers now constitute 32.42 percent of the 94.388 million activated bank accounts in the country. Consequently, only 64.128 million accounts that represent 68.7 percent of the total activated accounts domiciled in commercial banks are functional. According to the latest data from the Nigerian Inter-Bank Settlement System, the growing wave of new, active and dormant accounts across savings and currents account types in the country has been rising progressively steady. Giving the year-to-date analysis of the latest report up till October, NIBSS indicated that a total of 4.13 million accounts have become dormant within the period, jacking up the dormant account base to the current figure from 26.042 million it stood at the end Q4, 2015. NIBSS further stated that from a figure of 85.018 million accounts in December 2105, the total account base in the country has grown by 11.02 percent as 9.37 million new accounts were activated within the period.
  • At least three out of every 10 years spent in Lagos is lost to traffic, a survey by a Lagos-based transport firm, Planet Projects, has shown. It, therefore, means that residents of Lagos, Nigeria’s economic capital, spend an average of seven hours 20 minutes in traffic every day. The Managing Director, Planet Projects, Biodun Otunola, who spoke on the issue at a press briefing in Lagos on Saturday, said 70 percent of the city’s traffic bottlenecks could be located on road junctions. He said this was taking a heavy toll on the health of the road users, reducing their lifespan and adversely affecting their productivity as well as the economy of the nation. “Driving to work daily and being stuck in traffic for hours causes fatigue, leads to low productivity and burning of fuel. Unless we solve the traffic problem, and by extension the transport problem, we’ll continue to kill ourselves,” he said. Otunola said there was an urgent need to reduce car ridership in Lagos by 20 per cent. He also stressed that there was no need to build new roads in Lagos, adding that what was required was to work on the existing ones, remove some junctions and focus on effective public transportation.