(http://fmi.gov.ng/wp-content/uploads/2013/06/Iweala-300x224.jpg) The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala has said that the stability witnessed in Nigeria's economy is as a result of the country's external reserves which were achieved in close partnership with the nation's apex bank-the Central Bank of Nigeria.
She made this known on Monday, 10 June, 2013 in Abuja while presenting the Mid-Term achievements of the President Goodluck Jonathan Administration in the country's Financial Sector at the 2013 Ministerial Platform.
According to the Minister, a stable exchange rate, declining inflation and rising external reserves are some of the achievements recorded by the Administration. She told her audience that the dollar exchange rate has been between 155 and 160 naira over the last two years.(http://fmi.gov.ng/wp-content/uploads/2013/06/Iweala-and-State.jpg) (http://fmi.gov.ng/economy-stability-hinged-on-external-reserves-banks-shop-for-funding-offshore-says-okonjo-iweala/iweala-and-state/)
The Finance Minister also said that the country's inflation rate has slowed to 9.1 percent from the 12.4 percent recorded in May 2011, while adding that external reserves rose from $32.08 billion in May, 2011 to $48.4 billion as of May, 2013. Also, the Excess Crude Account (ECA) – a component of external reserves rose from about $4 Billion in May, 2011 to around $9 billion at the end of 2012. The Finance Minister however noted that the figure was about $6 billion as at May, 2013. She said the ECA was now helping the country since oil production had fallen from the projected 2.53 million barrels per day (bpd) to between 2.1 – 2.2 million bpd.
Dr. Okonjo-Iweala who described Nigeria's Gross Domestic Product (GDP) as one of the fastest growing in the World; said the GDP growth in 2013 was projected at 6.75 percent and 7.2 percent by the National Bureau of Statistics (NBS) and International Monetary Fund (IMF), respectively.
The Minister stated that Government has also been reforming the financial sector. She said all 22 banks are now fully stable and capitalized and that Non-Performing Loans have fallen to about 5 percent.
According to Okonjo-Iweala, a number of the country's banks have gone to raise funds abroad some of which include Access Bank ($350 million Euro Bond), GTBank ($350 million Euro Bond) and Fidelity Bank ($300 million Euro Bond).
She told her audience that Nigeria's credit ratings have also improved to BB- (or equivalent) having been rated by international agencies such as Fitch, Standard and Poor's, and Moody's. She said, this has enabled Nigerian corporates to borrow at cheaper rates on the international credit markets.
Though noting that not enough lending is going on at affordable interest rates, she said government is restructuring existing direct foreign investments (DFIs) to get in private sector capital.
In addition, the Finance Minister said, Government policies have supported capital markets especially, in the area of eliminating VAT and Stamp Duties. This, she said, had resulted in the rebound of capital markets explaining that the Stock Market index has risen by 71 percent since May, 2012 and the market capitalization (value of listed companies) has increased by 66.2 percent since May, 2012 to ₦11.8 trillion.
Furthermore, in the Insurance Sector, she said, claims paid increased from ₦37 billion in 2010 to ₦52 billion in 2012.
The Finance Minister has meanwhile highlighted other interventions by the Federal Government through the Ministry of Finance which include ongoing plans to provide 200,000 mortgages in the next 5 years from the current 20,000 mortgages.
Others include the training of 12,000 aspiring or existing young entrepreneurs, funding of 1,200 entrepreneurs and the identification of 1,200 women in May, 2013 across the six geopolitical zones to receive funding all under the YouWiN programme.
Mrs. Okonjo-Iweala further informed that as at May, 2013, a total of 14,025 jobs have been created across the country in the early stages of the YouWin first round. She said, at least 80,000 jobs are expected by the end of the third round in 2015.
In the breakdown of job creation by geo-political zone and sector as at May, 2013 which was provided during the presentation, North-Central had 2,552 jobs, North-East- 1,616, North-West-2,159, South-East-2,280, South-South -2,119 and South-West 3,299 jobs.
In addition, under the Community Services Scheme (CSS) and Graduate Internship Scheme (GIS) she disclosed that 370,000 youths are to be employed annually adding that 178,000 youths are already employed.
The Finance Minister said, Government was also providing 50,000 graduates with internship in established private sector organizations noting that 1,306 graduates have been placed so far.
Via: Federal Ministry of Information (FMI) Nigeria