The Nation Newspaper

Author: The Nation

  • Badagry residents laud Reps. for passing bill criminalising estimated billing

    By Agency Reporter

    Some residents of Badagry, Lagos State on Wednesday commended the House of Representatives on the passage of a bill criminalising estimated billing of consumers by Electricity Distribution Companies (DISCOs).

    In separate interviews with the News Agency of Nigeria (NAN) in Badagry, the residents said that the bill would end of years of arbitrary billing and extortion of electricity consumers by DISCOS, if passed into law.

    NAN reports that the House of Representatives had on Oct. 3 passed the bill which says issuance of estimated billing will attract either a one-year jail term or a fine of N1 million or both.

    The proposed law would also compel a distribution company to provide prepaid meter to an applicant within 30 days, while barring the DISCOs from disconnecting the consumer after the 30-day period within which meter should be installed.

    The Electric Power Sector Reform Act (Amendment) Bill 2018, presented in the Eighth National Assembly by Hon. Femi Gbajabiamila, then as Majority Leader, was re-presented in July 2019.

    Mr Samson Akpata, the Supervisory Councillor for Education and Tourism, Badagry Local Government, described the passage of the bill as a welcome development.

    “I wish to commend our Honourable Speaker for being consistent and in touch with the downtrodden.

    “Ripping off Nigerians through estimated billing is a financial crime and thank God the House is coming to the rescue of poor electricity consumers from the unscrupulous practice by Discos.

    “We can’t wait to see the end of this obnoxious estimated billing regime,” he said.

    Akpata said the law would wake up DISCOs from their slumber and treat consumers as kings.

    Read Also: President Buhari’s 2020 budget speech

    Mr Ebenezer Kuponu, Chairman, Badagry Community Development Committee (CDC), also commended the House of Representatives for passing the bill.

    According to him, the step will stop DISCOs from extorting innocent consumers through estimated billing.

    “We have seen the worst here in Badagry in the hands of Eko Electricity Distribution Company (EKEDC); they give us crazy bills every month without power supply.

    “They only give us supply at the end of the month when their officials are out to serve us crazy bills.

    “The following day, they will come with their ladder to disconnect us from the pole.

    ”Funnily enough, we will have to pay additional N2,000 connection fee to get connected back after we have paid the bill.

    “The whole thing is frustrating but thank God, the crazy bill is gradually coming to an end.

    “We are imploring the Upper Chamber to follow suit and ensure the bill becomes law,” he said.

    Mr Idowu Jimoh, a staff of Public Complaints Commission, Badagry, urged the Senate to also pass the bill, appealing to President Muhammadu Buhari to speedily assent to the bill when presented to him.

    Jimoh said government should not only ensure that the bill becomes law, but also see to its implementation to save the consumers.

    Mrs Chinyere Olorie, a restaurant operator in Badagry, said that EKEDC gave her N6,000 monthly bill without regular supply.

    “I have applied for prepaid meter without getting any for years,” she said.

  • Court sentences student to 12 months in prison

    By Agency Reporter

     

    A Dutse Grade I Area Court, Abuja on Wednesday sentenced Adamson Sunday, an 18-year-old student to 12 months in prison over N350, 000 investment scam.

    The Presiding Officer, Mr Suleiman Mohammed, who tried and found Sunday guilty of cheating and impersonation, however, gave him an option to pay N150, 000 fine.

    Mohammed also ordered the convict to pay N350, 000 to the complainant within a period of six months.

    Earlier, the prosecution counsel, Mrs Idowu Ojo, told the court that the convict was reported at the Bwari Police Station by Roland Oshokpelai of Zuma, Bwari, on Sept.28.

    Read Also: We’re lighting up Oyo to fight crime, says Makinde

    Ojo said the convict sometime in July deceived the complainant by impersonating one Shoke Holland and posted ”Flip Cash Investment” on Facebook, with a promise to multiply money.

    She said that the convict dishonestly collected the said sum from the complainant and converted it for his personal use

    The prosecution added that, during police investigation, the convict confessed to the crime.
    She said that the act, contravened the provisions of Section 324 of the penal code.

  • BREAKING: Senate begins debate on 2020 budget

    By Sanni Onogu, Abuja

    The Senate on Wednesday commenced debate on the general principles of the 2020 Appropriation Bill.

    President Muhammadu Buhari had on Tuesday presented an estimate of N10.33trillion as proposed aggregate expenditure for 2020 to a joint session of the National Assembly.

    Read Also: Budget 2020: I’m suffering from cold because of hard work, says Buhari

    Leader of the Senate, Senator Yahaya Abdullahi, had moved a motion that the a Bill for an Act to authorize the issue from the consolidated revenue fund of the Federation the total sum of N10,330,416,607,347.00 of which N556,700,827,235.00 is for statutory transfers, N2,748,598,930,000.00 is for Debt Service, N4,880,309,549,778.00 is for Recurrent (Non-Debt) Expenditure, while the sum of N2,144,807,300,334.00 is for contribution to the Development Fund for Capital Expenditure for the year ending on the 31st December, 2020, be considered for second reading.

    Details shortly…

  • Senate confirms Adeleke as NCC Executive Commissioner

    By Sanni Onogu, Abuja

    The Senate had confirmed the nomination of Barr. Adeleke Adewolu, as an Executive Commissioner on the governing board of the Nigerian Communications Commission (NCC).

    This followed the consideration and adoption of the report of the Senator Oluremi Tinubu-led Senate Committee on Communications at plenary.

    However, some Southeast Senators raised objections to the confirmation and drew the Senate’s attention to the lopsidedness in the NCC Board following the absence of a Southeast representative in the board at the moment.

    Senator Francis Onyewuchi (Imo East), citing Section 14(4) of the Constitution, called for the report to be stood down pending when there is a nomination to fill the Southeast slot.

    Senators Uche Ekwunife and Rochas Okorocha had earlier observed that there is no Southeast representative on the Board of the NCC.

    President of the Senate, Ahmad Lawan, said that even though the Senate as a lawmaking body would always insist that its legislation are adhered to, it is however not sufficient to stop the confirmation of Adeleke.

    Read Also: PDP urges lawmakers to redirect 2020 budget

    He, however, directed the Senate Committee on Communications to get the list of executive directors in the NCC, in view of the alleged marginalization of the Southeast in appointments into the board of the agency.

    Minority Leader, Senator Enyinnaya Abaribe, while raising an order for personal explanation, stated that the real issue is that there is a vacancy for the Southeast zone in the NCC board which has not been filled.

    Abaribe noted that the Southeast had a representative on the Board of the NCC who left to contest elections in another party.

    He said the action of the former Southeast representative on the board has now created a vacancy in the NCC board that is yet to be filled.

    The nomination of Adeleke was however approved by the Senate when it was put to voice vote by the President of the Senate.

  • Alleged Lekki hotel rape: Defence seeks transfer of case out of Sexual Offences Court

    By Agency Reporter

     

    The defence team of two men accused of drugging and raping a 24-year-old woman in De Lankaster Hotel Lekki, Lagos has requested that the file of the case be transferred out of the Ikeja Sexual Offences and Domestic Violence Court.

    The request was made on Wednesday after the trial had commenced and the complainant had testified against the defendants.

    On May 15 and June 13, Don-Chima George, 25, and Olusegun Rasak, 28, the two defendants were cross-examined by the defence on the matter.

    The News Agency of Nigeria (NAN) reports that George and Rasak were previously denied bail and ordered to be remanded in prison custody in a ruling delivered on April 29 by the Presiding Judge Justice Abiola Soladoye.

    Soladoye had denied the defendants bail because they
    had not placed any compelling or exceptional circumstance to warrant the court granting them bail.

    However, in a new twist to the case, the defendants, who are dropouts from Babcock University were granted bail on July 31 during the annual vacation of the High Court by Justice Ganiyu Safari, the sitting vacation judge at the time.

    Safari granted the defendants bail based on “new grounds” brought by the defence Counsel, Ms Funmi Adeogun of the law chambers of Mr Tunji Ayanlaja (SAN).

    Read Also: Police hunt for men who raped salesgirl to death

    During proceedings on Wednesday, Adeogun, had via a letter dated Aug. 26, applied for a transfer of the case file from Soladoye’s court.

    The defence applied for the transfer “in order to save the good trust of the courts and maintain high order of fair hearing between parties”.

    Reacting, Soladoye said “in view of the letter, we will order the transfer of the case file to the registry for further directive from the chief judge.”

    The case was adjourned till Nov. 26 to await the chief judge’s directives.

    NAN reports that the prosecution, led by Mr Akin George, alleged that the defendants committed the offence on Feb. 3 from 5.00 a.m. to 7.00 a.m. at De Lankaster Hotels at Lekki Phase 1 in Lagos.

    The complainant, who is friends with George, one of the defendants, went to a nightclub with the duo and a group of friends to celebrate George’s birthday.

    While at the nightclub, the defendants allegedly mixed the complainant’s drink with a substance that allegedly rendered her unconscious moments later.

    The prosecution alleged that they took the complainant to Delankaster Hotel, belonging to George’s father, where they allegedly took turns to rape her while videotaping the sexual act.

    According to the prosecution, the offences contravene Sections 258 and 409 of the Criminal Law of Lagos State, 2015.

  • FIRS donates troop movement trucks to Police

    By Nicholas Kalu, Abuja

     

    The Federal Inland Revenue Service (FIRS) has donated two personnel troop movement trucks to the Nigeria Police at the Force Headquarters in Abuja.

    Executive Chairman of the FIRS, Dr Babatunde Fowler, who presented the trucks to the Inspector General of Police (IGP), Mohammed Adamu, said without security there would be no tax revenue, hence the need to support the police.

    “We have special relationship with the Nigerian police and when you are talking about tax you are talking about law, and when you are talking about tax payment especially in Nigeria where a lot of people don’t want to pay taxes, sometimes for security of both the tax collector and the tax payer, we require the assistance of the police.

    “This is a long standing relationship, and of course we are aware, Nigeria needs a lot of revenue and the only way it can get revenue is where you have employment, and you can only have employment when you have active production and you can only have active production where you have security and that is the role of the police to provide security for all of us. We are doing this as FIRS, but we believe all well-meaning Nigerians, both in the corporate and as individuals should support the police.

    “Anyone who wears a uniform, who is laying down his or her life on behalf of others should be appreciated. This is just a little token in helping the police carry their responsibilities.

    “We should realize the sacrifice they make under the sun and rain. They provide security which would make our country better, which would help production, help employment and of course eventually help people pay more taxes.

    Read Also: FIRS and the challenge of reforms

    “We collect revenues for the three tiers of government and the way we see it without adequate security, there cannot be business.

    “Without security there can be no tax revenues. So we see ourselves as partners and at the same time, we are also aware that we should support each other and everything should be better.

    “We have two trucks for troop movement and we hope that in the near future we would do a whole lot more.

    “We appreciate the police for what they do for the country. We believe that people who put their lives at risk for the rest of us should be admired and supported,” Fowler said.

    IGP Mohammed Adamu said the FIRS under Folwer has been very cooperative with the police and has done a lot for them in different areas.

    He said the two trucks would facilitate the movement of their personnel from one part of the country to the other, and expressed gratitude for the donation.

    “You have appreciated the security situation in the country. It is a situation that needs collaboration and support from every Nigerian. It is a situation that needs support from services like yours and others.

    “For me you are the first since I became IG to come and donate such things to us. And I would call on other Nigerians and Services to please use their social corporate responsibility and channel it towards security in this country.

    “When you have security, you will have development, when you have development, you will have employment and when you have employment, you will deal away with poverty,” Adamu said.

    Photo captions

    1. The trucks

    2. L-R: Executive Chairman of the FIRS, Dr Babatunde Fowler and IGP Mohammed Adamu addressing reporters at the Force Headquarters in Abu

  • Adamawa records 54 rape cases in 3 months

    By Onimisi Alao, Yola

    Adamawa Hope Centre, a referral facility established in Yola, the state capital, to treat victims of gender-based violence, received 54 cases between July 1 and October 3, 2019.

    Most of the cases reportedly took place in six of the state’s 21 local government areas, suggesting that the 54 attacks may be a far cry from the actual figure of such attacks across the state over the period.

    The victims were mostly below 13 years of age.

    The state Project Coordinator of a nongovernmental organisation, Rule of Law and Anti-Corruption (RoLAC), Haphsatu Abdullahi, a lawyer, whose organisation partners with the Hope Centre in seeking justice for rape victims, made the disclosure Tuesday in Yola at a stakeholders conference against rape.

    “From the 1st of July 2019 to 3rd of October 2019, 54 cases were reported to the centre,” she said.

    Responding to a question from journalists who interviewed her, she said rape is either on the rise in the state or people are becoming more enlightened about the Hope Centre and learning to  come away from the culture of silence to take advantage of the services of the centre.

    The anti-rape statekeholders conference in Yola was initiated by a youth corps member, Miss Fatima Saka and funded by the European Union.

    The youth corps member explained that the conference was a follow-up of previous programme units targeted at curtailing rape.

    Read Also: Three arrested for gang-rape in Niger

    “Before now we have been going to schools talking to students and teachers. Now is for  stakeholders- traditional and community leaders, education managers, NGOs, and security agencies – to rob minds on how rape and other forms of gender violence can stop,” she explained.

    One of the representatives of NGOs who attended the stakeholders function, Charity Onoja who is the Adamawa State Coordinator of International Republican Institute (IRI), blamed rampant rape cases on poor prosecution.

    “Perpetrators are not being punished,” she asserted, adding, “we need the culture of adequately punishing perpetrators to make likely perpetrators fear that they could not do it and get away with it.”

    She commended the Adamawa Hope Centre for its role in drawing out rape victims and giving them medical and psychological counsels that help them out of the trauma of rape.

    Our correspondent recalls that the Adamawa Hope Centre, which was established on March 28, 2018, has become prominent for the succour it offers to rape victims.

    The Chairperson of the centre, Barr Fati Abbo, who spoke on the question of the coverage area of the centre, said although the people who visit the centre do so mostly from the three municipal LGAs of Yola North, Yola South and Girei, rape victims are increasingly coming from Demsa, Numan, and Fufore LGAs which are also close to the centre, located at the state Specialist Hospital in Jimeta, Yola North LGA.

    “We’ve carried out a lot of sensitization across the 21 LGAs of the state, so people are reasonably aware of us and are coming from even far-flung LGAs like Mubi North and Mubi South,  Madagali and Toungo,” the centre’s chairperson said.

    The large commercial town of Mubi, which exists as Mubi South and Mubi North LGAs, is some 194 kilometres north of the state capital, Yola, where the Hope Centre is located.

    Madagali, another northern Adamawa town, is more than 200km  away, while Toungo, which lies on the southern tip of the state, is 243km away.

    Fati Abbo, who spoke to our correspondent on the phone Tuesday evening, said she needed to consult the centre’s record to be able to precisely say where the 54 rape victims reported to the centre from, but she said she was sure that the bulk of them were from LGAs closest to Yola.

    “We are speaking for the replication of the centre in other LGAs so that distance will not be a barrier to people needing our services,” she said.

  • Wadume: Panel blames killing of policemen on poor communication

    The killing of the three Policemen and two civilians by troops of the Nigerian Army along Ibi-Wukari Road in Taraba State has been attributed to poor communication between the late Policemen and the soldiers, The Nation gathered.

    The Board of Inquiry (BOI) constituted by the Chief of Defence Staff General Gabriel Olonisakin to investigate the killing of the Policemen who were on undercover in Taraba State to arrest notorious kidnapper Hamisu Wadume in line with President Muhammadu Buhari’s directive, in its report submitted Tuesday also blamed the incident on non-adherence to Standard Operating Procedure by both parties.

    The 7-man Panel led by Rear Admiral Ibikunle Taiwo Olaiya also gave recommendations to forestall future occurrence and to bring anyone culpable to book in accordance with extant laws.

    It recommended that the Nigerian Army and the Nigerian Police Force should further investigate Captain Tijani Balarabe, Sergeant Ibrahim Mohammed, Corporal Bartholomew Obanye, DCO Ibi Police Division, Assistant Superintendent of Police Aondona Iorbee, and Inspector Aliyu Dadje for complacency and necessary disciplinary measures.

    It was also recommended that further investigation be conducted on Hamisu Bala for gunrunning and possibly kidnapping, in order to prosecute the suspect.

    According to a statement signed by Acting Director Defence Information, Colonel Onyema Nwachukwu , “following the directive of the Commander-in-Chief of the Armed Forces, President Muhammadu Buhari for an immediate investigation into the unfortunate incident that led to the killing of 3 Nigerian Police Force (NPF) personnel and 2 civilians by troops of the Nigerian Army (NA) along Ibi-Wukari Road in Taraba State, the Chief of Defence Staff General AG Olonisakin constituted a Board of Inquiry (BOI) to investigate the incident.

    “After a thorough and painstaking investigation into the incident, the BOI submitted its report to the convening authority observing that, there were infractions and poor communication between personnel of the NPF and troops of the NA. It was also observed that there was non-adherence to the Standard Operating Procedure by both parties involved in the incident. It further made some recommendations to the NA and NPF to forestall future reoccurrence and bring anyone culpable to book in accordance with extant laws.

    “The BOI also recommended that the NA and NPF should further investigate Captain Tijani Balarabe, Sergeant Ibrahim Mohammed, Corporal Bartholomew Obanye, DCO Ibi Police Division, Assistant Superintendent of Police Aondona Iorbee, and Inspector Aliyu Dadje for complacency and necessary disciplinary measures. It was also recommended that further investigation be conducted on Hamisu Bala for gunrunning and possibly kidnapping, in order to prosecute the suspect.

    Read Also: Wadume: Panel submits report, recommends sanctions for army officer, ASP, others

    It added that “you will recall that on 6 August 2019, reports of the sad killing of 3 police men and 2 civilians in Ibi Local Government Area of Taraba State by troops of the NA broke out. This gave rise to serious concern by the Federal government, the military and police high command.

    “The incident started from Ibi town, following an alarm alleging the kidnap of one Alhaji Hamisu Bala (aka Wadume) by some individuals in a Hummer bus. Captain Tijani Balarabe informed all military checkpoints along Ibi-Wukari Road, who sprang into action.

    “The alleged Hummer bus mentioned in the distress call however conveyed Police personnel of the IGP-IRT who were on a legitimate duty in Taraba State. Also, military checkpoints in the area were deployed by troops of Headquarters 93 Battalion, Takum, who were equally on legitimate duty to checkmate communal clashes, kidnapping and armed robbery, which were prevalent threats in Wukari Ibi area.

    “After a thorough and painstaking investigation into the incident, the BOI submitted its report to the convening authority observing that, there were infractions and poor communication between personnel of the NPF and troops of the NA. It was also observed that there was non-adherence to the Standard Operating Procedure by both parties involved in the incident. It further made some recommendations to the NA and NPF to forestall future reoccurrence and bring anyone culpable to book in accordance with extant laws.

    “Additionally, the BOI recommended that the Services and other security agencies establish an Interagency Liaison Desk to include senior officers for timely resolution of future misdemeanor.

    “The Defence Headquarters once again assures the public that the Armed Forces of Nigeria and other security agencies are working in synergy to tackle contemporary security challenges be-deviling the nation”.

  • Man confesses to killing 93 women

    By Agency Reporter

    79-year-old Samuel Little has confessed to killing more than 90 women in the U.S.

    He is considered to be the deadliest serial killer in US history, the Federal Bureau of Investigation said.

    Little, who has been behind bars since 2012, told investigators last year that he was responsible for about 90 killings nationwide between 1970 and 2005.

    In a news release on Sunday, the FBI announced that federal crime analysts believe all of his confessions are credible, and officials have been able to verify 50 confessions so far.
    Investigators also provided new information and details about five cases in Florida, Arkansas, Kentucky, Nevada and Louisiana.

    Little is serving multiple life sentences in California. He says he strangled his 93 victims, nearly all of them women.

    Some of his victims were on the margins of society. Many were originally deemed overdoses, or attributed to accidental or undetermined causes. Some bodies were never found.

    Read Also: I killed 15 women in seven states – Rivers serial killer

    The FBI provided 30 drawings of some of his victims – color portraits that were drawn by Little himself in prison. They are haunting portraits, mostly of black women.

    The agency also provided videos taken during prison interviews with Little. He described how he spoke about a woman he strangled in 1993 – and how he rolled her down a slope on a desolate road.

    “I heard a secondary road noise and that meant she was still rolling,” he said.

    In another video, he described a victim in New Orleans. “She was pretty. Light colored, honey brown skin,” he said with a small smile. “She was tall for a woman. Beautiful shape. And, uh, friendly.”

    It was 1982, and they met in a club. She left with him in his Lincoln, and they parked by a bayou.

    “That’s the only one that I ever killed by drowning,” he said.

    Investigators around the country are still trying to piece together his confessions with unidentified remains and unsolved cases from decades past. In August , he pleaded guilty to murdering four women in Ohio. He was convicted in California of three slayings in 2013 and pleaded guilty to another killing last year in Texas.

    Little, who often went by the name Samuel McDowell, grew up with his grandmother in Lorain, Ohio. He was described by investigators as a transient and former boxer who traveled the country preying on drug addicts, troubled women and others.

    Authorities in Knox County, Tennessee, said Monday that a woman named Martha Cunningham was likely a victim of Little’s.

    The Knoxville News Sentinel reported in December that a cold case investigator with the Knox County Sheriff’s Office had identified the victim who Little called “Martha.” The Knoxville mother’s body was found in a wooded area in eastern Knox County in 1975.

    Cunningham’s body was found by a pair of hunters on the afternoon of Jan. 18, 1975. She was bruised and nude from the waist down; her pantyhose and girdle bunched around her knees. Her purse and some of her jewelry were missing. Her body appeared to have been dragged into the woods and dumped behind a pine tree, authorities said at the time.

    Despite that evidence, detectives at the time attributed Cunningham’s death to natural causes within a day of the discovery. The medical examiner’s investigative report lists the probable cause of death as “unknown.”

    Cunningham was a talented singer and pianist who grew up performing with her parents and her six younger siblings in a gospel group known as the Happy Home Jubilee Singers.

    Law enforcement in Tennessee had Little in custody 19 years after Cunningham’s body was found.

    Little was convicted of misdemeanor larceny in 1994 in Nashville, Tennessee, and he was sentenced to 90 days in jail, according to Tennessee Bureau of Investigation criminal records obtained Monday by The Associated Press.

    Ted Bundy confessed to 30 homicides from about 1974 to 1978. John Wayne Gacy killed at least 33 boys and young men in the 1970s.

    Arguably one of the deadliest globally was an English general practitioner named Harold Shipman, who an investigative panel determined was responsible for the deaths of 250. He was convicted in 2000 in the deaths of 15.

  • President Buhari’s 2020 budget speech

    By Agency Reporter

    PROTOCOLS

    1.            I will start by asking you to pardon my voice. As you can hear, I have a cold as a result of working hard to meet your deadline!

    2.            I am delighted to present the 2020 Federal Budget Proposals to this Joint Session of the National Assembly, being my first budget presentation to this 9th National Assembly.

    3.            Before presenting the Budget, let me thank all of you Distinguished and Honourable Members of the National Assembly, for your avowed commitment to cooperate with the Executive to accelerate the pace of our socio-economic development and enhance the welfare of our people.

    4.            I will also once again thank all Nigerians, who have demonstrated confidence in our ability to deliver on our socio-economic development agenda, by re-electing this Administration with a mandate to Continue the Change. We remain resolutely committed to the actualization of our vision of a bright and prosperous future for all Nigerians.

    5.            During this address, I will present highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will provide full details of these proposals, subsequently.

    OVERVIEW OF ECONOMIC DEVELOPMENTS IN 2019

    6.            The economic environment remains very challenging, globally. The International Monetary Fund expects global economic recovery to slow down from 3.6 percent in 2018 to 3.5 percent in 2020. This reflects uncertainties arising from security and trade tensions with attendant implications on commodity price volatility.

    7.            Nearer to home, however, Sub-Saharan Africa is projected to continue to grow from 3.1 percent in 2018 to 3.6 percent in 2020. This is driven by investor confidence, oil production recovery in key exporting countries, sustained strong agricultural production as well as public investment in non-dependent economies.

    8.            Mr. Senate President; Right Honourable Speaker; I am pleased to report that the Nigerian economy thus far has recorded nine consecutive quarters of GDP growth. Annual growth increased from 0.82 percent in 2017 to 1.93 percent in 2018, and 2.02 percent in the first half of 2019. The continuous recovery reflects our economy’s resilience and gives credence to the effectiveness of our economic policies thus far.

    9.            We also succeeded in significantly reducing inflation from a peak of 18.72 percent in January 2017, to 11.02 percent by August 2019. This was achieved through effective fiscal and monetary policy coordination, exchange rate stability and sensible management of our foreign exchange.

    10.         We have sustained accretion to our external reserves, which have risen from US$23 billion in October 2016 to about US$42.5 billion by August 2019. The increase is largely due to favourable prices of crude oil in the international market, minimal disruption of crude oil production given the stable security situation in the Niger Delta region and our import substitution drive, especially in key commodities.

    11.         The foreign exchange market has also remained stable due to the effective implementation of the Central Bank’s interventions to restore liquidity, improve access and discourage currency speculation. Special windows were created that enabled small businesses, investors and importers in priority economic sectors to have timely access to foreign exchange.

    12.         Furthermore, as a sign of increased investor confidence in our economy, there were remarkable inflows of foreign capital in the second quarter of 2019. The total value of capital imported into Nigeria increased from US$12 billion in the first half year of 2018 to US$14 billion for the same period in 2019.

    PERFORMANCE OF THE 2019 BUDGET

    13.         Distinguished and Honourable Members of the National Assembly, you will recall that the 2019 ‘Budget of Continuity’ was based on a benchmark oil price of US$60 per barrel, oil production of 2.3 mbpd, and an exchange rate of N305 to the United States Dollar. Based on these parameters, we projected a deficit of N1.918 trillion or 1.37 percent of Gross Domestic Product.

    14.         As at June 2019, Federal Government’s actual aggregate revenue (excluding Government-Owned Enterprises) was N2.04 trillion. This revenue performance is only 58 percent of the 2019 Budget’s target due to the underperformance of both oil and non-oil revenue sources. Specifically, oil revenues were below target by 49 percent as at June 2019. This reflects the lower-than-projected oil production, deductions for cost under-recovery on supply of premium motor spirit (PMS), as well as higher expenditures on pipeline security/maintenance and Frontier exploration.

    15.         Daily oil production averaged 1.86 mbpd as at June 2019, as against the estimated 2.3 mbpd that was assumed. This shortfall was partly offset as the market price of Bonny Light crude oil averaged US$67.20 per barrel which was higher than the benchmark price of US$60.

    16.         Additionally, revenue projections from restructuring of Joint Venture Oil and Gas assets and enactment of new fiscal terms for Production Sharing Contracts did not materialize, as the enabling legislation for these reforms is yet to be passed into law.

    17.         The performance of non-oil taxes and independent revenues such as internally generated revenues were N614.57 billion and N217.84 billion, respectively.

    18.         Receipts from Value Added Tax were below expectations due to lower levels of activities in certain economic sectors, in the aftermath of national elections. Corporate taxes were affected by the seasonality of collections, which tend to peak in the second half of the calendar year.

    19.         On the expenditure side, 2019 Budget implementation was also hindered by the combination of delay in its approval and the underperformance of revenue collections. As such, only recurrent expenditure items have been implemented substantially. Of the prorated expenditure of N4.46 trillion budgeted, N3.39 trillion had been spent by June 30, 2019.

    20.         In compliance with the provisions of the 2018 Appropriation Act, we implemented the 2018 capital budget till June 2019. Capital releases under the 2019 Budget commenced in the third quarter. As at 30th September 2019, a total of about N294.63 billion had been released for capital projects. I have directed the Ministry of Finance, Budget and National Planning to release an additional N600 billion of the 2019 capital budget by the end of the year.

    21.         Despite the delay in capital releases, a deficit of N1.35 trillion was recorded at end of June 2019. This represents 70 percent of the budgeted deficit for the full year.

    22.         Despite these anomalies, I am happy to report that we met our debt service obligations, we are current on staff salaries and overhead costs have also been largely covered.

    2020 BUDGET PRIORITIES

    23.         Distinguished Senators, Honourable Members, let me now turn to the 2020 Appropriation, which is designed to be a budget of:

    a.    Fiscal consolidation, to strengthen our macroeconomic environment;

    b.    Investing in critical infrastructure, human capital development and enabling institutions, especially in key job creating sectors;

    c.    Incentivising private sector investment essential to complement the Government’s development plans, policies and programmes; and

    d.    Enhancing our social investment programs to further deepen their impact on those marginalised and most vulnerable Nigerians.

    PARAMETERS & FISCAL ASSUMPTIONS UNDERPINNING THE APPROPRIATION BILL AND THE FINANCE BILL

    24.         Distinguished and Honourable Members of the National Assembly, the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) set out the parameters for the 2020 Budget. We have adopted a conservative oil price benchmark of US$57 per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per US Dollar for 2020.

    25.         We expect enhanced real GDP growth of 2.93% in 2020, driven largely by non-oil output, as economic diversification accelerates, and the enabling business environment improves. However, inflation is expected to remain slightly above single digits in 2020.

    26.         Accompanying the 2020 Budget Proposal is a Finance Bill for your kind consideration and passage into law. This Finance Bill has five strategic objectives, in terms of achieving incremental, but necessary, changes to our fiscal laws. These objectives are:

    a.    Promoting fiscal equity by mitigating instances of regressive taxation;

    b.    Reforming domestic tax laws to align with global best practices;

    c.    Introducing tax incentives for investments in infrastructure and capital markets;

    d.    Supporting Micro, Small and Medium-sized businesses in line with our Ease of Doing Business Reforms; and

    e.    Raising Revenues for Government.

    27.         The draft Finance Bill proposes an increase of the VAT rate from 5% to 7.5%. As such, the 2020 Appropriation Bill is based on this new VAT rate. The additional revenues will be used to fund health, education and infrastructure programmes. As the States and Local Governments are allocated 85% of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well.

    28.         The VAT Act already exempts pharmaceuticals, educational items, and basic commodities, which exemptions we are expanding under the Finance Bill, 2019. Specifically, Section 46 of the Finance Bill, 2019 expands the exempt items to include the following:

    a.    Brown and white bread;

    b.    Cereals including maize, rice, wheat, millet, barley and sorghum;

    c.    Fish of all kinds;

    d.    Flour and starch meals;

    e.    Fruits, nuts, pulses and vegetables of various kinds;

    f.     Roots such as yam, cocoyam, sweet and Irish potatoes;

    g.    Meat and poultry products including eggs;

    h.   Milk;

    i.     Salt and herbs of various kinds; and

    j.     Natural water and table water.

    29.         Additionally, our proposals also raise the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on larger businesses thereby bringing relief for our Micro, Small and Medium-sized businesses.

    30.         It is absolutely essential to intensify our revenue generation efforts. That said, this Administration remains committed to ensuring that the inconvenience associated with any fiscal policy adjustments, is moderated, such that the poor and the vulnerable, who are most at risk, do not bear the brunt of these reforms.

     

    FEDERAL GOVERNMENT REVENUE ESTIMATES

    31.         The sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenue N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. This is 7 percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.

    32.         The increasing share of non-oil revenues underscores our confidence in our revenue diversification strategies, going forward. Furthermore, in our efforts to enhance transparency and accountability, we shall continue our strict implementation of Treasury Single Account (TSA) to capture the domiciliary accounts in our foreign missions and those linked to Government Owned Enterprises.

    PLANNED 2020 EXPENDITURE

    33.         An aggregate expenditure of N10.33 trillion is proposed for the Federal Government in 2020. The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers). Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion.

    STATUTORY TRANSFERS

    34.         The sum of N556.7 billion is provided for Statutory Transfers in the 2020 Budget and includes:

    a.    N125 billion for the National Assembly;

    b.    N110 billion for the Judiciary;

    c.    N37.83 billion for the North East Development Commission (NEDC);

    d.    N44.5 billion for the Basic Health Care Provision Fund (BHCPF);

    e.     N111.79 billion for the Universal Basic Education Commission (UBEC); and

    f.     N80.88 billion for the Niger Delta Development Commission (NDDC), which is now supervised by the Ministry of Niger Delta Affairs.

    35.         We have increased the budgetary allocation to the National Human Rights Commission from N1.5 billion to N2.5 billion. This 67 percent increase in funding is done to enable the Commission to perform its functions more effectively.

    RECURRENT EXPENDITURE

    36.         The non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs, an increase of N620.28 billion over 2019. This increase reflects the new minimum wage as well as our proposals to improve remuneration and welfare of our Police and Armed Forces. You will all agree that Good Governance, Inclusive Growth and Collective Prosperity can only be sustained in an environment of peace and security.

    37.         Our fiscal reforms shall introduce new performance management frameworks to regulate the cost to revenue ratios for Government Owned Enterprises, which shall come under significant scrutiny. We will reward exceptional revenue and cost management performance, while severe consequences will attend failures to achieve agreed revenue targets.

    38.         We shall also sustain our efforts in managing personnel costs. Accordingly, I have directed the stoppage of the salary of any Federal Government staff that is not captured on the Integrated Payroll and Personnel Information System (IPPIS) platform by the end of October 2019. All agencies must obtain the necessary approvals before embarking on any fresh recruitment and any contraventions of these directives shall attract severe sanctions.

    39.         Overhead costs are projected at N426.6 billion in 2020. Additional provisions were made only for the newly created Ministries. I am confident that the benefits of these new Ministries as it relates to efficient and effective service delivery to our citizens significantly outweighs their budgeted costs.

    40.         That said, the respective Heads of MDAs must ensure strict adherence to government regulations regarding expenditure control measures. The proliferation of Zonal, State and Liaison Offices by Federal Ministries, Departments and Agencies (‘MDAs’), with attendant avoidable increase in public expenditure, will no longer be tolerated.

    CAPITAL EXPENDITURE

    41.         As I mentioned earlier, investing in critical infrastructure is a key component of our fiscal strategy under the 2020 Budget Proposals. Accordingly, an aggregate sum of N2.46 trillion (inclusive of N318.06 billion in statutory transfers) is proposed for capital projects in 2020.

    42.         Although the 2020 capital budget is N721.33 billion (or 23 percent) lower than the 2019 budget provision of N3.18 trillion, it is still higher than the actual and projected capital expenditure outturns for both the 2018 and 2019 fiscal years, respectively. However, at 24 percent of aggregate projected expenditure, the 2020 provision falls significantly short of the 30 percent target in the Economic Recovery and Growth Plan (ERGP) 2017-2020.

    43.         The main emphasis will be the completion of as many ongoing projects as possible, rather than commencing new ones. MDAs have not been allowed to admit new projects into their capital budget for 2020, unless adequate provision has been made for the completion of ALL ongoing projects.

    44.         Accordingly, we have rolled over capital projects that are not likely to be fully funded by the end of 2019 into the 2020 Budget. We are aware that the National Assembly shares our view that these projects should be prioritised and given adequate funding in the 2020 Appropriation Act.

    45.         Therefore, I will once again commend the 9th National Assembly’s firm commitment to stop the unnecessary cycle of delayed annual budgets. I am confident that with our renewed partnership, the deliberations on the 2020 Budget shall be completed before the end of 2019 so that the Appropriation Act will come into effect by the 1st of January.

    Read Also: LIVE UPDATES: 2020 Budget Presentation

    46.         Some of the key capital spending allocations in the 2020 Budget include:

    a.    Works and Housing: N262 billion;

    b.    Power: N127 billion;

    c.    Transportation: N123 billion;

    d.    Universal Basic Education Commission: N112 billion;

    e.    Defence: N100 billion;

    f.     Zonal Intervention Projects: N100 billion;

    g.    Agriculture and Rural Development: N83 billion;

    h.   Water Resources: N82 billion;

    i.     Niger Delta Development Commission: N81 billion;

    j.     Education: N48 billion;

    k.    Health: N46 billion;

    l.     Industry, Trade and Investment: N40 billion;

    m.  North East Development Commission: N38 billion;

    n.   Interior: N35 billion;

    o.    Social Investment Programmes: N30 billion;

    p.    Federal Capital Territory: N28 billion; and

    q.    Niger Delta Affairs Ministry: N24 billion.

    47.         Although Government’s actual spending has reduced, our plans to leverage private sector funding through our tax credit schemes will ensure our capital programmes are sustained.

    48.         For example, we launched the Road Infrastructure Tax Credit Scheme, pursuant to which I have approved the construction and rehabilitation of 19 Nigerian roads and bridges of 794.4km across 11 States. Indeed, the Scheme has attracted private investment of over N205 billion and the first set of tax credits are being processed by the Federal Ministry of Finance, Budget and National Planning.

    49.         As I mentioned during my Independence Day Speech, under the Presidential Power Initiative, we will modernise the National Grid in 3 phases; starting from 5 Gigawatts to 7 Gigawatts, then to 11 Gigawatts by 2023, and finally 25 Gigawatts afterwards in collaboration with the German Government and Siemens.

    BUDGET DEFICIT

    50.         Budget deficit is projected to be N2.18 trillion in 2020. This includes drawdowns on project-tied loans and the related capital expenditure.

    51.         This represents 1.52 percent of estimated GDP, well below the 3 percent threshold set by the Fiscal Responsibility Act of 2007, and in line with the ERGP target of 1.96 percent.

    52.         The deficit will be financed by new foreign and domestic borrowings, Privatization Proceeds, signature bonuses and drawdowns on the loans secured for specific development projects.

    DEBT SERVICE

    53.         Nigeria remains committed to meeting its debt service obligations. Accordingly, we provided the sum of N2.45 trillion for debt service. Of this amount, 71 percent is to service domestic debt which accounts for about 68 percent of the total debt. The sum of N296 billion is provided for the Sinking Fund to retire maturing bonds issued to local contractors.

    54.         I am confident that our aggressive and re-energised revenue drive will maintain debt-revenue ratio at acceptable and manageable levels. We will also continue to be innovative in our borrowings by using instruments such as Sukuk, Green Bonds and Diaspora Bonds.

    SOCIAL INVESTMENT PROGRAMME

    55.         Our government remains committed to ensuring the equitable sharing of economic prosperity. Our focus on inclusive growth and shared prosperity underscores our keen interest in catering for the poor and most vulnerable. Accordingly, we are revamping and improving the implementation of the National Social Investment Programme through the newly created Ministry of Humanitarian Affairs, Disaster Management and Social Development.

    56.         The National Social Investment Programme is already creating jobs and economic opportunity for local farmers and cooks, providing funding to artisans, traders, youths, and supporting small businesses with business education and mentoring.

    57.         The provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2020 Budget. Furthermore, to fast track the rebuilding efforts in the North East region, a provision of N37.83 billion has been made for the North East Development Commission.

    OTHER STRATEGIC PRIORITIES IN 2020

    58.         The 2020 Budget is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion. We are optimistic of attaining higher and more inclusive GDP growth in order to achieve our objective of massive job creation and lifting many of our citizens out of poverty.

    59.         The efficiency of port operations will also be enhanced by implementing a single customs window, speeding up vessel and cargo handling and issuing more licenses to build modern terminals in existing ports, especially outside Lagos.

    60.         Furthermore, completing the reforms to the governance and fiscal terms of the Petroleum Industry will provide certainty and attract further investments into the sector. A consequence of this will be increase in jobs and in government’s take. I therefore seek your support in passing into law two Petroleum Industry Executive Bills I will be forwarding to you shortly.

    61.         In addition, we need to quickly review the fiscal terms for deep offshore oil fields to reflect the current realities and for more revenue to accrue to the government. The Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2018, was submitted to the 8th National Assembly in June 2018 but was unfortunately not passed into law.

    62.         I will be re-forwarding the Bill to this Assembly very shortly and therefore urge you to pass it. We estimate that this effort can generate at least 500 million US dollars additional revenue for the Federal Government in 2020, and over one billion dollars from 2021.

    63.         Whilst the Budget is our principal fiscal tool to achieve these socio-economic development targets, we remain committed to prudently planning for our future economic prosperity. In this regard, I have directed the reconstituted Ministry of Finance, Budget and National Planning to commence preparations towards the development of successor medium – and long-term economic development plans, particularly as the Nigeria Vision 20-2020 and the ERGP expire next year.

     

    CONCLUSION

    64.         Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the National Assembly, this speech would be incomplete without, once again, commending the patriotic resolve of the 9th National Assembly to collaborate with the Executive in the effort to deliver inclusive growth and enhance the welfare our people. I assure you of the strong commitment of the Executive to deepen the relationship with the National Assembly.

    65.         As you review the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), as well as the 2020 Budget estimates, we believe that the legislative process will be quick, so as to restore the country to the January-December financial year.

    66.         It is with great pleasure therefore, that I lay before this Distinguished Joint Session of the National Assembly, the 2020 Budget Proposals of the Federal Government of Nigeria.

    67.         I thank you most sincerely for your attention.

    68.         May God bless the Federal Republic of Nigeria.