FG clarifies: We have not discontinued Remita till June - ITREALMS

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The Federal Government has clarified that it has not discontinued the use of Remita as the Central Bank of Nigeria (CBN) approved payment gateway, reports ITREALMS.

A press statement by the Director of Press and Public Relations, Bawa Mokwa, and available to ITREALMS, the OAGF clarified that Remita will be integrated into the Treasury Management and Revenue Assurance System (TMRAS) alongside other eligible Payment Solution Service Providers (PSSPs).

Cyber Security Levy controversy: CBN clarifies on monetary policy guidelines'24-25 - ITREALMS

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The Central Bank of Nigeria (CBN) has made some clarifications on the monetary, credit, foreign trade and exchange policy guidelines for the fiscal years 2024 and 2025, with regards to the Policy circular No. 45, which dwelt on Cyber Security Levy, reports ITREALMS.

This is coming as CBN has temporarily withdrawn the said circular No. 45 to minimise further risk of misinterpretation.

FOI request: The Whistler demands INEC clarifies 'How Governorship, State Assembly Results Will Be Transmitted' - ITREALMS

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The Whistler newspapers, one of Nigeria’s online independent news platforms, has written to the Independent National Electoral Commission (INEC) to explain how it intends to collate and transmit results of this Saturday’s governorship and state assembly elections, reports ITREALMS.

In a Freedom of Information Act request addressed to the Chairman, Mahmood Yakubu, the media house cited the Commission’s refusal to deploy electronic transmission of results in the February 25 Presidential and National Assembly election contrary to the provisions of the Electoral Act 2022 as reason for seeking the clarification.

NITDA reacts to NCS, insists on registering IT contractors, clarifies position

ITREALMS:

The National Information Technology Development Agency (NITDA) has reacted to the call by the Nigeria Computer Society (NCS) to stop the registration and licensing of Information Technology (IT) contractors and service providers in the country, insisting on carrying on the process claiming it would weed out quacks, reports ITRealms.

Already, ITRealms gathered that several indigenous IT Contractors and Service Providers have commenced the process of registration with NITDA as at the time of filing this report.

NITDA in its clarifications on why the agency embarked on the process ab ni tio, the Director-General of the agency, Dr Isa Ali Ibrahim Pantami, said the registration process will ensure professionalism in IT service delivery, value for national investments in IT and weed out quacks who may seek to take advantage of public procurements for selfish interests.

Although, Pantami acknowledged the position and mandate of the ComputerProfessionals (Registration Council) of Nigeria as a Council is mandated to have control and supervision of the (Computing) profession as provided by Section 1(2) of the Computer Professionals (Registration council of Nigeria) Act., as well as concerns of the Nigeria Computer Society, he insisted that the registration by NITDA is in line with agency’s mandate as specifically stated in Section 6 (a, f) NITDA Act 2007.

This, he said, mandated NITDA to create a framework for the planning, research, development, standardization, application, coordination, monitoring, evaluation and regulation of information technology practices, activities and systems in Nigeria; and to render advisory services on all information technology matters to the public and private sectors.

Pantami maintained that “it is within the regulatory and developmental role of NITDA to ensure that IT contractual practises and project delivery in the public sector are done in accordance with best practices, within acceptable standards and in the interest of the development of IT in Nigeria.”

Furthermore, he said, NITDA as the clearance house for IT projects of the Federal Government, has the responsibility to ensure that IT projects are executed by professional firms.

“NITDA as a regulator will not relent in its quest to improve IT practises and expose projects that are ill-conceived or poorly executed,” he said, assuring all Nigerians that it will not allow sub-standard projects in MDAs being executed by companies that have limited or no capacities. 

Chuks Egbune/GEE

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DMO clarifies FG borrowing module for USD5.5bn

ITRealms:

The Debt Management Office (DMO) has clarified the plans of the Federal Government to source for capital worth USD5.5 billion, from the International Financial Markets, reports ITRealms.

In a Press Release, made available to ITRealms, the DMO stated that the proposed USD5.5 billion comprises of two components: USD2.5 billion new borrowing and USD3 billion for refinancing.

USD2.5 Billion

The first component of USD2.5 billion, represents new external borrowing provided for in the 2017 Appropriation Act to part finance the deficit in that Budget. It will be recalled that the 2017 Appropriation Act provided for new External Borrowing of N1.067 trillion or USD3.5 billion at an Exchange Rate of USD/N305. Out of this amount, USD300 million has been raised through a Diaspora Bond that was issued in June 2017 leaving a balance of USD3.2 billion out of which USD2.5 billion is to be sourced through a Eurobond Issuance. 

The USD2.5 billion proposed Eurobond, will be used to finance critical road and rail projects included in the 2017 Appropriation Act. Some of the projects are: construction of a Second Runway at the Nnamdi-Azikwe International Airport; rail projects including Lagos-Kano, Calabar-Lagos, Kano-Kaduna, Ajaokuta-Itakpe-Warri, Kaduna-Idu; and the Bodo-Bonny Road with a Bridge across the Opobo Channel.

These infrastructural facilities will lead to job creation and improve the climate for business thereby contributing to economic growth.

USD3 Billion

The DMO also provided further clarifications on the issue of the proposed USD3 billion External Borrowing that will be used to repay some of the existing domestic debt. In the explanation, the DMO stated that this was purely a portfolio restructuring activity that will not result in any increase in the public debt as it is simply an exchange of one type of debt (Domestic) for another (External). The DMO stated that, the Domestic Debt Stock as at June 30, 2017 included about N3.7 trillion of Nigerian Treasury Bills (NTBs) with tenors of less than one year and at interest cost of about 17% p.a.

The short term nature of the NTB stock and the high interest rate, expose the public debt to refinancing risk and high Debt Service Costs. By converting them to External Debt, the tenor will be extended to at least 5 years while the Interest Cost will drop to about 7% p.a. The savings in Debt Service from this exercise is estimated at over N90 billion per annum.

Benefits of these External Capital Raising

i.     Reduce Debt Service

Reduce the Interest Cost of Borrowing as external borrowing in US Dollars is much cheaper at about 7% p.a. compared to up to 17% p.a. in the domestic market.

ii.    Increase Stability in the Debt Stock

Extend the tenor profile of the debt stock as longer-dated External Debt is used to replace short term domestic debt. This would make the debt portfolio more stable, thereby reducing refinancing risk.

iii.   Increase in borrowing space for the private sector

The pressure in the domestic market created by the large government borrowing will be reduced. This will create more space for borrowing by the private sector which will enable them contribute to the growth of the Nigerian economy.

iv.   Increase in Nigeria’s External Reserves

External Borrowing represent foreign currency into the nation’s External Reserve thereby allowing for a stable exchange rate for the Naira.

Other Considerations

The proposed USD2.5 billion new borrowing through Eurobonds to part finance the deficit in the 2017 Appropriation Act and the refinancing of existing domestic debt through external capital raising of USD3 billion, are consistent with Nigeria’s Debt Management Strategy, whose main objective is the increase external financing with a view to rebalancing the public debt portfolio in favour of long-term external financing in order to reduce the cost of debt and lengthen the maturity profile.

The DMO added that in contracting external debt, a conscious effort is made to exhaust all opportunities available from the concessional sources in order to reduce the level of External Debt Service.

Furthermore, all Borrowings are approved by the National Assembly and are included in the Annual Budgets and the Medium Term Expenditure Framework (MTEF).

*Courtesy:  Ifeanyi Omokwe

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Pix: Ms Oniha, DG-DMO