Saturday 13 September, 2014 Updated 7:07 My Account About Us Contact Us ThisDay Live Home NEWS THISDAYBUSINESS THISDAYSPORTS POLITICSTHISDAY LIFE AND STYLE HEALTH AND WELLBEING BACKPAGE Editorial Thisday-tv HOME > NEWS Okonjo-Iweala Confirms Cut in GDP Forecast by 0.5% 13 Sep 2014 Font Size: a / A 2801F01.Ngozi-Okonjo-Iweala.jpg - 2801F01.Ngozi-Okonjo-Iweala.jpg Minister of Finance, Dr. Ngonzi Okonji Iweala FG, UN Sign $1.2bn development assistance framework agreement Crusoe Osagie in Lagos and James Emejo in Abuja The Federal Government Friday confirmed cut in the countrys projected Gross Domestic Product (GDP) growth rate in 2014 by 0.5 percent citing economic impact of terrorism and the deadly Ebola Virus Disease (EVD) as factors responsible for the cut. The drop in the GDP forecast is coming on the heels of a $1.29 billion Development Assistance Framework (UN-DAF III) agreement signed by the federal government and the United Nations (UN) to support good governance, social capital, economic growth and human security in all the states of the federation. The cut in forecast confirms THISDAYs earlier report. The Coordinating Minister of the Economy and Minister of Finance, Dr. Ngonzi Okonji Iweala, who hinted about the cut in the GDP growth forecast yesterday stressed that although the country had excellently managed the outbreak of the EVD and was focused on tackling the menace of Boko Haram, both activities have had a combined impeding effect on the economy, “marginally reducing economic growth rate.” Iweala spoke in Lagos, in company with the Global Chief Executive Officer of Unilever, Mr. Paul Polman, who is driving the expansion of Unilever investment in Nigeria and announced that he was currently in talks with the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, over local sourcing of agricultural raw materials as inputs for sprawling Unilever plants across the country. The minister at the meeting noted that the fact that multinational companies were confident in expanding investments in the country, clearly showed that Nigeria was safe for business to thrive, maintaining that despite the various terror attacks and the EVD outbreak, the country had remained viable due to the numerous untapped potentials in the long term. She however noted that the 1/2 per cent point decline in growth projection was more as a result of the terrorism activities of the Boko Haram sect than the EVD which Nigeria is still projecting to grow around 6.5 per cent going forward. We would have grown at about 7 per cent but the effects of the Boko Haram and the outbreak of the EVD discounted our growth rate by half a percent point this year. We believe that the way we are managing this outbreak, it shall be effectively contained, the minister said. She however pointed out that the EVD outbreak had affected the hospitality industry, with hotel occupancy rate in most Lagos hotels down and many international meetings postponed. We are taking all of these into accounts. We are still monitoring with our small team chaired by the Chief Economic Adviser, working on the impact of the EVD. So far, the discounted per cent point was largely due to terror and a little impact from the EVD. The Global Chief Executive Officer, Unilever, has commended the President for the way he handled and contained the EVD. This is one more endorsement from the international community. We just got our second quarter Gross Domestic Product (GDP) growth figures which is about 6.54 per cent. In spite of the challenges we have, we are growing very well. The President is working very hard to make sure that this growth is translated into employment opportunities for the nations teeming youths, she said. She then advised other companies to emulate Unilever by approaching their businesses in a sustainable manner, stressing that the federal government will only partner businesses with such inclination. We are growing and we have being having challenges with inequality. If we have a company that looks not just at the bottom line of income but at how their businesses affect people at the bottom end of the ladder in terms of integrating backwards into agriculture to see areas of working with small holder farmers. They have a tropical forest alliance which they engage small holders to farm sustainably to get good returns, she said. According to her, the growth rate at 6.54 per cent cannot solve all the problems faced in the country tasking multinationals to fight hard to ensure that the growth rate translates into job creation. The growth rate means that they are going to invest more which would create more jobs in the country. We have being growing but the growth has come with growing unequally which we do not like. What Nigerians want is job because this is the only way you can translate this growth to people at the bottom end of the ladder, she added. Meanwhile, Polman said the enormous potentials in Nigeria was being unlocked with many investments coming into the country, adding that with a population of 170 million people and a growth rate of 6.54 per cent, Nigeria remained a destination for investment from all multinational corporations. He noted that as a result of this, Unilever made a commitment to invest about 150 million Euros in the country and also said the company was in talks with the Minister of Agriculture to partner on local sourcing of raw materials. Polman added that Nigeria offered a lot of enormous investment opportunities that would attract suppliers of packaging and raw materials to bring about a multiplier effect suitable for economic growth and development. The Unilever global boss maintained that multinational companies must look for ways to partner in order to make Nigeria an efficient low cost producer of commodities stressing that, it was a matter of willingness on the part of investors to continue to invest in the country. FG, UN Sign $1.2bn development assistance framework agreement… Meanwhile, the implementation of the UNDAF expected to begin from 2014 to 2017, would allow each states of the federation including agencies, to benefit according to their level of compliance and counterpart funding. Speaking at the signing ceremony in Abuja, Minister of National Planning Commission (NPC), Dr. Abubakar Sulaiman, who also inaugurated the UNDAF Action Plan Steering Committee said the intervention marked the beginning of the UN system commitment to working harmoniously in a more coherent manner. He said the framework would ensure that development assistance translates into higher impact and enhanced effectiveness for government and Nigerians as well as stem the duplication of activities and reduce costs on government and the UN system. Sulaiman further stated that the four areas of the UNDAF III in which the funds would be administered related to the core elements of governments intervention as it is consistent with the resolve to deliver the dividends of democracy to Nigerians. He noted that the steering committee had become inevitable in order to ensure adherence of all UN interventions to national priorities. Tags: News, Nigeria, Featured, Okonjo, Gdp Rating: (0) Print Latest News Leaving a Blue-chip Company to Join the Public Sector was a Scary Proposition I Wasn’t Sure I Could Manage… 13 Sep 2014 Mike Ikoku: How Early Marriage Stabilised Me 13 Sep 2014 Portion Control 13 Sep 2014 Beautiful Brows now in Nigeria 13 Sep 2014 Toyin Lawani Ready to Launch her Fashion and Beauty One Stop Outlet 13 Sep 2014 comments powered by Disqus Search Sign Petition Online Guest of the Week AD Box Style AMFW edition YoWindow yr.no Arise tv From the past 7 days...
Posted on: Sat, 13 Sep 2014 12:22:08 +0000
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