Recession: Obiano Suspends Minor Taxes In Anambra

Anambra, Obiano, Taxes, RecessionAnambra State Governor, Willie Obiano, has suspended payment of numerous minor taxes in the state, announcing that the directive will take immediate effect.

In a broadcast at the Governor’s Lodge in Amawbia, southeast Nigeria, he said the decision followed the announcement of the Federal Government that the nation’s economy had gone into recession.

The Governor noted that his administration was aware of the difficulty the economic crisis had posed to the people of the state.

Four Intervention Stimulus

He said the state government had come up with a “four-intervention stimulus package”, to ease the pain of recession and its impact on the people in the grassroots majorly.

Governor Obiano identified the first part of the four key areas of intervention as the “Tax Relief Programme” in which various minor taxes would be suspended.

The second is the “Special Intervention Programmes for Small and Medium Enterprises and Large Enterprises” where the state government, under the Anambra Small Business Agency (ASBA), would provide the agency with a minimum of three billion Naira to lend to SMEs and MSMEs at nine per cent interest rates across key sectors.

Under the third intervention, which is the “Social Intervention Programme”, the government would provide the sum of 3.6 billion Naira to fund the ongoing 20 million Naira “Choose-Your-Project Community Programme” in all the 179 communities in the state.

The last programme is the “Infrastructure Intervention for Job Creation” in which the government would fund the development of 500 hectares of land in all agrarian communities across the three senatorial zones for commercial agricultural purposes among other measures.

Governor Obiano believes that Anambra State has the manpower, the material resources and the willpower to turn the looming despair and suffering to hope and prosperity for its people.

GDP Contracted In second Quarter

Nigeria’s economic recession had become obvious few weeks ago, after a report by the National Bureau of Statistics showed that the Gross Domestic Product had contracted by 2.06% in the second quarter of 2016.

According to the report, the decline has caused the Naira to get weaker while lower oil prices dragged the oil sector down.

The output shrunk by 0.36 in the first quarter.

During the quarter, nominal GDP was 2.73% higher at 23.48 million Naira at basic prices.

Earlier on Tuesday, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) retained all key indicators.

The CBN Governor, Mr Godwin Emefiele, read a communique, announcing decisions reached at its September meeting in the nation’s capital, Abuja.

The committee agreed to keep the Monetary Policy Rate at 14 percent, the Cash Reserve Ratio at 22.50 percent and the Liquidity Ratio at 30 percent.

Finance Minister Appears Before Senate, Says Nation Is Going Through Recession

Finance MinistryThe Minister of Finance, Mrs Kemi Adeosun, on Thursday admitted that the nation is going through a recession.

Mrs Adeosun, who was speaking during the plenary session of the Senate said the Federal Government is aware of the sufferings the recession may have caused Nigerians but added that steps have been taken to ensure that the nation gets out of its economic challenge.

She also appealed to Nigerians not to panic over recent reports of international agencies, which puts the nation’s economy in a bad light but to believe in the policies of government geared towards achieving a stable economy.

She told the lawmakers what the government is doing to ensure fiscal discipline in the face of the recession, key amongst which is the reduction in recurrent expenditure.

She urged Nigerians not to panic over recent comments by international organisations on the economy.

The lawmakers dwelt on how the Federal Government plans to mitigate the impact of the fall of oil prices on the masses.

The Minister also told the lawmakers that N14 billion has been released for the Social Intervention Programme, while a total of N247 billion capital releases has been made and expressed confidence that these will stimulate economic activities.