How to sustain Nigeria’s economy after Coronavirus pandemic

Nigeria’s economic team has its task set out clear in preparing the economy for a stronger recovery process post COVID-19 and Steering the economy away from an imminent recession.

Economic watchers project a best case scenario of a V-shaped recovery which will be characterised by a quick and sustained recovery only if government moves at a fast pace with economic adjustments and stabilising macroeconomic indices that largely affect output despite a projected contraction of about 3-3.5% .

For now, the first quarter Gross domestic product report earlier released calms the mood with a GDP growth of 1.87% year on year which saw the oil sector posting a growth of 5.06% while the non oil sector grew by 1.55% in real terms compared to 2019 figures.

This isnt enough as a dip is expected in the second and third quarter largely reflecting the volatility of the oil market and lockdown leading to plunge in demand.

With the MPC reducing the monetary policy rate to 12.5% and retaining other key parameters, the charge now is on government to monitor closely increasing global headwinds such as weak aggregate demand and rising corporate debt. Away from these external shocks, increasing the local revenue base through tax collection is a major contending issue as the purchasing power of many has been largely affected and a soar in unemployment rates.

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This content was originally published here.

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How to sustain Nigeria’s economy after Coronavirus pandemic

Nigeria’s economic team has its task set out clear in preparing the economy for a stronger recovery process post COVID-19 and Steering the economy away from an imminent recession.

Economic watchers project a best case scenario of a V-shaped recovery which will be characterised by a quick and sustained recovery only if government moves at a fast pace with economic adjustments and stabilising macroeconomic indices that largely affect output despite a projected contraction of about 3-3.5% .

For now, the first quarter Gross domestic product report earlier released calms the mood with a GDP growth of 1.87% year on year which saw the oil sector posting a growth of 5.06% while the non oil sector grew by 1.55% in real terms compared to 2019 figures.

This isnt enough as a dip is expected in the second and third quarter largely reflecting the volatility of the oil market and lockdown leading to plunge in demand.

With the MPC reducing the monetary policy rate to 12.5% and retaining other key parameters, the charge now is on government to monitor closely increasing global headwinds such as weak aggregate demand and rising corporate debt. Away from these external shocks, increasing the local revenue base through tax collection is a major contending issue as the purchasing power of many has been largely affected and a soar in unemployment rates.

Subscribe to our YouTube channel for more great videos: http://www.youtube.com/tvcnewsnigeria

Follow us on Twitter: https://twitter.com/tvcnewsng

Like us on Facebook: https://www.facebook.com/tvcnewsng

For more great content go to https://tvcnews.tv

Download our mobile app for iPad, iPhone and Android at http://mobile.tvcnews.tv or go to the store

This content was originally published here.

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Sudden death of Sandwell ‘gentleman’ devastates family and friends – Birmingham Live

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The sudden death of a ‘wonderful’ councillor has shocked officers and local politicians in Sandwell.

Cllr Bob Lloyd’s passing on Saturday has been described as ‘tragic’ by council leader Yvonne Davies who said he was a wonderful man who had worked tirelessly for his Wednesbury ward.

Saying the news was a bolt of the blue, she added: “I think everybody, including myself is still in shock and it is very difficult to come to terms with.

“He was universally loved. Everyone who met him says what a gentleman he was and he was a peace keeper. He always tried to keep everyone working together positively. He was a joy to work with.

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“He was always positive, he was always able to find the humour in things and was always reaching out to help others.

“He really was a wonderful, wonderful man and I can’t begin to think how his family must be utterly devastated.”

Cllr Lloyd was first elected to the council in 2014 and as the cabinet member for inclusive economic growth had responsibility for job creation.

He was a driving force behind proposals to revitalise town centres in Sandwell and was set to announce development plans for West Bromwich town centre at Wednesday’s cabinet meeting.

His passing was marked on social media by friends, colleagues and political rivals.

Cllr Richard Jones, posted on twitter: “I am devastated that my friend Bob Lloyd suddenly passed away this weekend. He was one of the best ones and will be sadly missed but rest assured not forgotten.”

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The Sandwell Conservative Federation adding their condolences to his family, posted: “We are shocked and saddened to hear about the passing of Cllr Bob Lloyd. Bob was a community champion and a decent man and his passing will be a huge loss to the Labour movement in Sandwell.”

A spokesperson for Sandwell council said Cllr Lloyd is survived by two children and a grandchild.

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JUST IN: LASTMA officer stoned to death in Lagos | P.M. News

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Oyeshina before his death

By Kazeem Ugbodaga

An officer of the Lagos State Traffic Management Authority, LASTMA, Ola Oyeshina has been stoned to death at Iganmu-Sifax axis of Apapa, Lagos while trying to decongest the area of traffic.

The incident reportedly occurred on Friday around 5.00pm.

According to LASEMA’s General Manager, Olajide Oduyoye, a large stone was thrown at him by some people and that two persons had been arrested in connection with the murder.

Condemning the murder of Oyeshina, the LASTMA boss said the government would not fold its arm and allow its officers to be attacked by hoodlums.

Oduyoye said when the LASTMA officer was stoned, he was immediately rushed to Area “B” police station along with two of the people who attacked him, as ACP Bayo Sulaimon thereafter ordered the detention of the two (2) attackers that were arrested while a letter of medical referral was issued for the victim’s attention at the hospital.

He further revealed that owing to the traumatic experienced, Oyeshina was immediately referred to LUTH from Randle Hospital, Surulere.

The LASTMA General Manager further revealed that it was unfortunate that the agency lost the young promising officer to the cold hand of death in the early hours of Saturday, 30th November, 2019.

He, therefore, assured that the perpetrators of the dastard act who were caught would be prosecuted in court to serve as deterrent to other members of the public who might harbour notion of committing such crime in future.

Oduyoye said that “LASTMA was established to manage and control traffic in order to reduce the people’s travel time on our roads, increase economic growth through increased productivity and ensure the populace’s safety and security.

“A situation where road users will now turn against any government official in order not to answer the consequences of breaking the law, is unacceptable and would not be condoned henceforth”.

Oduyoye emphasised that with the recent inauguration of a committee on war against traffic and environmental offenders, there was no more hiding place for Lagos residents or visitors who go against the law.

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Interest rates: Powell tells Congress federal debt is ‘unsustainable’

Powell: U.S. debt is ‘on unsustainable path,’ crimping ability to respond to recession

Federal Reserve Chairman Jerome Powell warned lawmakers Wednesday that the ballooning federal debt could hamper Congress’ ability to support the economy in a downturn, urging them to put the budget “on a sustainable path.”

Powell suggested such fiscal aid could be vital after the Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.

“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”

Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.

“The outlook is still a positive one,” he said. “There’s no reason this expansion can’t continue.”

The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.

Those developments have hurt manufacturing and business investment while consumer spending remains on solid footing.

The Fed’s benchmark rate is now at a range of 1.5% to 1.75%, above the near-zero level that persisted for years after the Great Recession of 2007-09 but below the 2.25% to 2.5% range early this year.

“Nonetheless, the current low-interest-rate environment may limit the ability of monetary policy to support the economy,” Powell said.

Noting the Fed has lowered its federal funds rate an average 5 percentage points in prior downturns, Powell said, “We don’t have that kind of room.” He added, “Fed policy will also be important, though,” if the nation enters a recession. Fed officials have said they still have ammunition to fight a slump, including lowering rates and resuming bond purchases.

Meanwhile, the federal budget deficit hit $984 billion in fiscal 2019, the highest in seven years, and it’s expected to top $1 trillion in fiscal 2020. The federal tax cuts and spending increases spearheaded by Trump have added to the red ink and are set to add at least $2 trillion to the federal debt over a decade. The national debt recently surpassed $23 trillion.

“The debt is growing faster than the economy and that is unsustainable,” Powell said.

He added that a high and rising federal debt also can “restrain private investment and, thereby, reduce productivity and overall economic growth.” That’s because swollen debt can push interest rates higher.

“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, “How you do that and when you do that is up to you.”

Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.

Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.

“We see the current stance of monetary policy as likely to remain appropriate” as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.

Since last month’s Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.

“There’s a lot to like about today’s labor market,” Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it’s lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed’s 2% target.

“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.

Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of “a massive tax increase,” which some analysts say could be required by several Democratic presidential candidates’ proposals for universal health care or free college tuition.

“I’m particularly reluctant to be pulled into the 2020 election,” said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

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