In a recent report, Afrinvest West Africa Limited commended the federal government’s directive to operate a single treasury account saying it is a move that will ensure transparency and improve revenue inflow.
The report titled: “Scrutinising the “Change Agenda”… 100 days Appraisal of the Nigerian Macroeconomic Condition,” examined President Muhammadu Buhari’s 100 days in office and his economic achievements.
The report read “The Buhari’s administration has embarked on reforming some revenue generating agencies of government (majorly the NNPC, Customs and FIRS) with the intention of plugging leakages in the system while also improving the fiscal inflow from these agencies. This led to the change of guard in the leadership of these agencies which are believed would be run more efficiently and professionally going forward.
“Despite the cloud of uncertainty due to absence of a cabinet, the perceived dispositions of the presidency in light of some recent directives are pointers to anticipated positive reforms for the economy. This is particularly important to stem the tide of corruption, the absence of which appears is a sine qua non for Buhari before the wheels of the economy can be kick-started.”
On Power supply, the report noted a significant improvement; the report read “As widely believed, the body language of the president seems to be positive for power supply as significant improvement is being noticed across the country. Electricity generation peaked at 4600MW in late August (relative to less 3500MW before his assumption of office) traceable to the radical decline in cases of gas-pipeline vandalism nationwide. Nonetheless, power generation remains below optimum level given the installed capacity of approximately 10,000MW.
“Amidst low global oil prices, Nigeria’s external reserves has appreciated 6.3 per cent (under Buhari) from 1st of June 2015 to date traceable to the reduced oil revenue leakages as well as the demand-management policies of the CBN to constrain forex outflow. Consequently, the exchange rate at the interbank has remained stable at N199/$1 although the parallel market rates still trade at higher volatile bands.”
AfrinvestWeeklyUpdate4September2015
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