TheCable

The federal government says the Nigerian economy will grow by 3.3 to 3.5 percent by the end of 2016, defying the International Monetary Fund (IMF) forecast on the economy.

This was disclosed by Udo Udoma, minister of budget and national planning, after the national economic council (NEC) meeting in Abuja on Thursday.

Speaking to journalists after the meeting, Udoma — like Kemi Adeosun, minister of finance — acknowledged that Nigeria is currently in a recession, while awaiting gross domestic product details from the National Bureau of Statistics.

He said the economic council and the federal government as a whole were working assiduously to address the state of the Nigerian economy, which is expected to post a negative second quarter GDP.

The meeting, which was chaired by the Vice President Yemi Osinbajo, came about 48 hours after the IMF said Nigeria’s economy would shrink by 1.8 percent in 2016.

7 STATES YET TO MEET BAILOUT CONDITIONS

In a statement released by Laolu Akande, special assistant to the vice president on media and publicity, it was stated that 27 states had not yet met bailout conditions, while seven were currently being processed due to late submission.

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), told the council that Nigerians could now deposit dollars in their non-export “dom accounts subject to the provisions of the money laundering Act”.

Adeosun, on her part, disclosed that the excess crude account had a balance of $3.93 billion as at June 20, 2016.

The council adopted “the green alternative” initiative put forward by Audu Ogbeh, minister of agriculture, to “operate in partnership with State Governments to meet national production targets” and “embark on production of export commodities”.

The council said the CBN Anchor Borrowers Programme will support millions of small-holders in rice production, while government would raise rice milling capacity to 10 million paddy rice annually, with “current efforts to conclude a China-Exim Bank Credit to support 40,000 – 100,000 tons per day rice mills for Nigeria”.

ELIMINATING CASH CALLS

Ibe Kachikwu, minister of state for petroleum resources, briefed the council that the current upstream joint venture company (JVC) arrangement in Nigeria’s oil and gas sector are incorporated JV with NNPC and the IOC partners.

He proposed a new self-funded JVC cash calls, which is an incorporated JVCs, with potentials to “improves accountability within the governing structure of the JVs”.

Kachikwu also informed the council that the self-funded JVC will have “a self-funding entity outside otherwise cumbersome government budget process” with “less political interference given that operational control rests with joint teams and ultimately IJVC entities when formed”.

He said the proposed JV funding will also focuses on commercial decision making.