The Nation Newspaper

Tag: 2013 budget

  • Oduah lists priorities of 2013 budget

    Minister of Aviation, Princess Stella Oduah, has said the ministry will next year focus on improving and consolidating on going efforts at infrastructure upgrade as well as the certification of airports in the country in accordance with the standards of international civil aviation organisation (ICAO).

    Oduah, who spoke during her presentation of the 2013 budget to the senate committee on aviation, said it is unacceptable that some airports in the country are certified.

    To achieve certification for the nation’s airports, the Minister said their effort at reconstruction and remodelling of the airports would be consolidated and improved upon in the 2013 fiscal year, especially with regard to the provision of safety critical infrastructure.

    Areas that would receive priority attention include Landing instruments, security and communication infrastructure, water hydrants, fire fighting vehicles, airfield lighting and interrupted, 24-hour electricity supply.

    Others include equipment for the control and prevention of bird strikes, conveyor belts, functional air-conditioning systems for the remodelled terminals, Avio bridges, sufficient apron buses to halt the risky practice whereby passengers walk through the tarmacs to board aircraft, Welfare buses for aviation workers to alleviate their hardship in terms of transportation to and from work, amongst others.

    She stated that the infrastructure upgrade is beside the construction of five new international airport terminals and several perishable and cargo terminals in the nation’s airport.

    “The aim of all these projects is to modernise our airports, gradually phase out all obsolete equipment and infrastructure and bring our airports to international standards and best practices. This is the only way we can get our airports to be certified”, Oduah declared.

    Also Chairman, Senate Committee on Aviation, Senator Hope Uzodinma, said it is “very sad that most of our airports are not certified in accordance with ICAO standards. We must, therefore, do everything possible to get them certified.”

    He said other areas which deserve serious attention; and upon which the government must find a way to fund in the 2013 budget is capacity building and training of professionals/experts by the Nigerian College of Aviation Technology (NCAT), airfield lighting as well the maintenance of the runways.

  • NNPC seeks $13.8b for 2013

    NNPC seeks $13.8b for 2013

    The Nigeria National Petroleum Corporation on Thursday asked the Senate to approve $13.8 billion for its expenditure in 2013.

    Group Executive Director of NNPC (Exploration and Production), Abiye Membere, spoke during the corporation’s budget defence before the Senate Committee on Petroleum (Upstream) in Abuja.

    The Group Managing Director of NNPC, Andrew Yakubu sat beside Membere during the budget defence.

    Attempts by Membere to give a breakdown of the budget was resisted by committee members, including Senators Heineken Lokpobiri and Hayatou Gwarzo, who insisted that he should first convert the amount in dollars to its naira equivalent.

    Chairman of the Committee, Senator Emmanuel Paulker intervened, saying the lawmakers were interested in what the Nigerian government has spent on the corporation.

    This, according to him, constitutes NNPC’s budget and that of the Joint Venture Contracts (JVC) and the Production Sharing Contracts (PSCs).

    “We want to know the totality of what you budgeted for 2012 and tell us how far you’ve gone. That would enable us know how far you’ve gone,” Paulker said.

    Membere said the NNPC got N1, 572 trillion as its budget for the 2012 fiscal year.

    He said the oil giant had initially requested for N1, 917,150 trillion which was turned down.

    Members said: “The 2012 budget request was $12.78billion and $10.48billion was approved for us. In terms of performance, as at September 2012, we have spent $6.386billion and that represents about 61 per cent.

    “It is broken down into different line items with respect to cash call, domestic gas, BRASS, LNG and different elements for which the budget was approved.”

     

  • 2013 budget: ‘$75 oil benchmark positive’

    2013 budget: ‘$75 oil benchmark positive’

    • Rep to Okonjo-Iweala: Abide by $80 benchmark or resign

    Africa Global Research Standard Chartered Bank has said the $75 oil benchmark on which the Federal Government hinged the 2013 budget, is adequate to protect Nigeria from being vulnerable if oil prices fall.

    It however said there are gaps in the daily oil output the Appropriation is premised, given the fact that investment in the sector is not even, or growing.

    The claim that Nigeria is producing at an all-time high of 2.53mn bpd does not inspire confidence, the bank, said.

    The desk made its verdict known in a confidential analysis made available to the government by Razia Khan, Regional Head of Research, Africa Global Research, Standard Chartered Bank, London,

    The observations of the desk have been made available to key government officials.

    A copy of the brief obtained yesterday, reads in part: “The adoption of a $75/bbl benchmark assumption is still relatively positive. Of greater concern is the suggestion that there might be an attempt by the House to raise this to $80/bbl.

    “In our view, given global risks, and Nigeria’s on-going fiscal and export dependency on a single commodity, the priority for Nigeria has got to be increasing its rate of saving.

    “Were oil prices to fall, Nigeria would currently be left very vulnerable, with no sound mechanism for being able to smooth spending, let alone provide a counter-cyclical boost to the economy,” she said, adding that the Sovereign Wealth Fund, while encouraging, is not yet sizeable enough to create a sound buffer against external shocks.

    “It cannot be assumed either that the debt markets currently comfortably open to Nigeria, would be unaffected by any fall in the oil price. There is therefore a need for much more fiscal conservatism, and the signals from the House are a considerable concern,” she stated.

    The brief also faulted the oil production figures put forward by the Federal Government in the face of dwindling investment in the sector.

    Meanwhile, the Minister of Finance, Ngozi Okonjo-Iweala has been advised to resign if she finds it impossible to comply with the provisions of the Appropriation Act, 2013 when passed into law.

    The arrow head of the House joint committee that examined the 2013-2915 Medium Term Expenditure Framework (MTEF) and Fiscal Startegy Paper (FSP), Dr. Abdulmumin Jubrin, said Okonjo-Iweala should resign if it would be impossible for her to relate with the $80 benchmark, given by the House of Representatives, stressing that the 2013 budget would be anchored on the $80 bench mark, as stated by the Speaker.

    “The Minister of Finance would have to resign her position If she can not comply with the provisions of the Appropriation Act because that would amount to breaking the law. By the time the budget is passed, it becomes law that everybody must comply with,” he stressed.

    “We are talking from the point of law because our position on the issue of benchmark would be backed by the law and if it would be unacceptable to her, it would be better she resigns rather than break the law,” he added.

  • Jonathan presents N4.9tr budget for 2013

    Jonathan presents N4.9tr budget for 2013

    President Goodluck Jonathan on Wednesday presented a budget of N4.9 trillion for the 2013 fiscal year, representing a five per cent increase to that of 2012 which was N4.7 trillion.

    Jonathan said the budget titled: “Budget of Fiscal Consolidation with Inclusive Growth’’, was premised on oil benchmark of 75 dollars per barrel in a volatile oil market.

    In the budget proposal, Works got N183.5 billion, Power N742.6 billion, Education N426.5 billion, Health N279.23 billion, Defence N340.91 billion, Police N319.65 billion, Agriculture and Rural Development N81.41 billion.

    He said the machinery and spare parts imported for local sugar manufacturing industries would attract zero per cent duty starting from January 2013.

    The president said that the import duty for rice would also be increased to encourage local production.

    “There will also be a five year tax holiday for sugar-cane and sugar value chain investors.

    “A 10 per cent import duty and 100 per cent levy will be applied for both polished and brown rice,’’ he said.

    On oil and gas, Jonathan said efforts were being made to restructure the sector for improved performance.

    “The oil and gas sub-sector requires a lot to sustain and ensure improvement.

    “We shall, therefore, complement available resources with the proposed infrastructure Euro bond of about one billion dollar in order to complete gas pipeline and other infrastructure investments,” the News Agency of Nigeria quoted the president as saying during the presentation.

    Jonathan said all commercial aircraft and spare part imported into Nigeria would attract zero per cent duty and zero per cent tax.

    According to him, this will applicably improve safety in our skies and ease maintenance.

    He said machinery and equipment imported for use in solid minerals would attract zero per cent import duty and zero per cent tax.

    On mass-transit, he noted that all components for buses of 40 -seater would attract zero per cent tax down from five per cent so as to encourage the production of mass-transit buses.

    “Government is desirous of encouraging green growth and in this regard, we will provide incentive for energy efficient vehicles in the 2014 fiscal year.’’

    The president said his government was working at empowering women through five pilot ministries, Agriculture, Health, Communication technology, Water Resources and Works.

    “The ministry of Agriculture will work with the Ministry of Information and Communication Technology to ensure that five million women farmers and agricultural entrepreneurs receive mobile phones to be able to access information on agriculture through an electronic wallet scheme.’’

    Jonathan also said N3 billion would be disbursed for routine immunisation.

    He said the number of women employed as contractors would be increased by giving them 35 per cent of FERMA rehabilitation works.

    According to him, the regime is disappointed with the performance of the nation’s athletes at the just concluded Olympics, but impressed with the performance of the Paralympians.

    “We will soon hold a retreat on sports and how to move it forward.’’

    He said that his administration had attracted N7. 8 billion investment commitment to the agriculture sector and that an extra 2.5 million jobs would be created in 2015.

    The president said government was working towards optimal implementation of the budget in order to save cost.

     

  • Jonathan to present 2013 budget Wednesday

    Jonathan to present 2013 budget Wednesday

    President Goodluck Jonathan will present the 2013 budget to a joint session of the National Assembly on Wednesday.

    The President in a letter addressed to Senate President, David Mark, on Tuesday in Abuja, which was read out to the senators, urged the NASS to allow him to present the budget by 10am.

    The letter reads in part; ‘’As a follow up to my letter of September 21, 2012, I write to crave your kind indulgence to grant me the slot of 10am on Wednesday, October 10, 2012.

    “This is to enable me formerly address a joint session of the National Assembly on the 2013 budget.’’

    Jonathan thanked the senators for their constant support and assured them of his highest esteem.

    The News Agency of Nigeria recalls that the president had earlier sought the approval of the NASS to present the budget on October 4, but the date was shifted due to requests by the lawmakers.

    The Senate Leader, Victor Ndoma-Egba, moved a motion, which was unanimously adopted, that the senators move to the House of Representatives Chamber on Wednesday to receive the document.

    The senators, however, resolved to hold plenary session by 9am on Wednesday to enable them quickly deliberate on some issues before the budget presentation.

     

  • 2013 budget will address water supply, says Fayemi

    Ekiti State Governor Kayode Fayemi yesterday said next year’s budget will address water problems in the state.

    He spoke during Town Hall meetings at Ekiti East, Ilejemeje, Moba and Gboyin local government areas.

    Fayemi said several millions of naira would be expended on Ero Dam, which serves about nine local governments.

    He said representatives of the state at the National Assembly have pooled resources together for the dam’s rehabilitation.

    The governor said the Ekiti Water Corporation would be re-organised, adding that five water treatment plants in Ido Ile, Okemesi, Ipole Iloro and others would be inaugurated this week.

    He said the Egbe and Itapaji dams would be repaired and pipes that got damaged during roads’ repair would be replaced.

    Fayemi said the government would dig solar-powered bore holes in some areas, pending the laying and replacement of ductile pipes.

    He said the contract for the building of a five-kilometre road in Ilejemeje local government was terminated because of the contractor’s poor performance.

    Fayemi said the contract has been re-awarded and the contractor would move to site early next month.

    The road is expected to be completed in December.

    Fayemi said his administration aims to build 80 kilometres of roads in councils annually.

     

  • 2013 Budget: Reps propose $82 per barrel benchmark

    2013 Budget: Reps propose $82 per barrel benchmark

    • Disagrees with Fed Govt over $45b debt, Nigeria to borrow $12b next year

    The House of Representatives has asked that the benchmark for the 2013 budget be increased from $75 to $82 per barrel.

    The joint House committee on Finance, Legislative Budget and Research, National Planning and Economic Development and Loans, Aids and Debt, in a report obtained by The Nation, yesterday, recommended that “the oil benchmark of $75/barrel should be increased to $82/barrel.”

    The Committee’s position followed a review carried out on the 2013-2015 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) of the Federal Government in accordance with the mandate the House.

    One of the reasons the House gave for rejecting the proposed date of October 4 for the presentation of the 2013 budget by President Goodluck Jonathan was that it was yet to study the MTEF and FSP submitted to the House by the Executive.

    According to the report, the increase in the benchmark, “will lead to an increase in oil and gas revenue from N7,250.516 billion to N7, 963.436. The $7 increase in the benchmark will increase federal government’s share of revenue from N3,561.02 billion to N4,137.31 billion.”

    The report further recommended that the revenue target of the Nigeria Customs Service should be increased from N914.366 billion to N1,018.310 trillion, while the target for Federal Inland Revenue Service (FIRS) and Federal Government Independent Revenue (FGNIR), could be retained as proposed in the document. This increase will make Total Non-Oil revenue to rise from N3,298.46 billion to N3,523.82 billion.

    “The deficit portion of the budget should be reduced from N1, 307.19 trillion to N791.26 billion. Internal borrowing should be reduced from N727.19 billion to N381.25 billion, representing 52 per cent decrease. This is to enhance domestic access to credit by the private sector,” the committee stated in the report.

    The joint committee also recommended that measures that will “guarantee the projected revenue increase be adopted.”

    Meanwhile, the House raised the alarm over the mounting debt stock of the country put at $45 billion as at the end of June, 2012.

    But the Director-General, Debt Management Office (DMO) Dr. Abraham Nwankwo told a joint committee on Finance, Legislative Budget and Research, National Planning and Economic Development and Loans, Aids and Debt, while meeting on the 2013-2015 Medium Term Expenditure Framework and Fiscal Strategy Paper yesterday that there was nothing to be afraid of as the debts were within sustainable limits.

    But the committee disagreed with Nwanko wondering why the country is accumulating such huge debts after it paid dearly to exit the debt burden from the Paris Club during the regime of President Olusegun Obasanjo.

    The Joint Committe also summoned the CBN Governor, Sanusi Lamido Sanusi to appear before it within 24 hours for it to conclude its deliberation on the MTEF and FSP.

    The CBN sent a Director and nine Assistant Directors to the meeting of the committee but the committee insisted it wanted the CBN Governor, Sanusi Lamido Sanusi to defend the MTEF before them in person.

    While presenting the debt profile of the country before the committee, the DMO boss revealed the current debt stock of the country stands at a little over $45billion.

    According to him, the external debt stands at $6billion while the internal debt is $39.456billion. The Federal Government has projected to borrow $25billion by 2015, he added.

    While explaining Nigeria’s overall debt profile and expected borrowing between 2013 and 2015 Nwankwo said for 2012, Nigeria external debt is projected at $9,021.53billion while $12,165.10billion is expected to be borrowed in 2013.

    He also stated that by 2014, the country would be borrowing $14,585billion externally while $16,765billion was projected for 2015.

  • 2013 Budget: Reps recommend $82 per barrel oil benchmark

    2013 Budget: Reps recommend $82 per barrel oil benchmark

    The House of Representatives has recommended that the oil benchmark for the 2013 budget be increased from $75 to $82 – a difference of $7 per barrel.

    The joint House committee on Finance, Legislative Budget and Research, National Planning and Economic Development and Loans, Aids and Debt in a report obtained by The Nation on Tuesday, recommended that “the oil benchmark of $75/barrel should be increased to $82/barrel.”

    The joint committee had carried out a review of the 2013-2015 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) of the Federal Government based on the mandate the House.

    One of the reasons the House gave for rejecting the proposed October 4 date for the presentation of the 2013 budget by President Goodluck Jonathan was that it was yet to study the MTEF and FSP submitted to the House by the Executive.

    According to the report, the increase in the benchmark “will lead to an increase in oil and Gas revenue from N7, 250.516 billion to N7, 963.436. The $7 increase in the benchmark will increase Federal Government share of revenue from N3, 561.02 billion to N4, 137.31 billion.”

    The report further recommends: “The revenue target of the Nigeria Customs Service should be increased from N914.366 billion to N1, 018.310 trillion, while the target for FIRS and Federal Government Independent Revenue (FGNIR) could be retained as proposed in the document.

    This increase will make Total Non-Oil revenue to rise from N3,298.46 billion to N3,523.82 billion.

    “The deficit portion of the budget should be reduced from N1, 307.19 trillion to N791.26 billion. Internal borrowing should be reduced from N727.19 billion to N381.25 billion, representing 52 per cent decrease. This is to enhance domestic access to credit by the private sector.

     

  • Jonathan to present 2013 budget in October

    Jonathan to present 2013 budget in October

    President Goodluck Jonathan is to present the 2013 budget before the joint session of the National Asembly on October 4.

    The intention of the President was made known to the lawmakers in a letter to the Speaker of the House of Representatives, Aminu Tambuwal.

    The Presidnt’s presentation is howevef coming against the backgroud of the lawmakers’ declaration to reject the proposal if the current 2012 budget was not fully implemented.

    It would be recalled that the House is also set to embark on a week physical inspection of infrastructure projects across the country, to ascertain the level of budget implementation by the Executive.

    Chairman, House Committee on Information and Public Affairs, Zakari Mohammed, said the on-going audit of government Ministries, Departments and Agencies (MDA), would form the basis for the acceptance of the 2013 budget presentation.

    Insisting that the resolution of the House on 100 per cent budget implementation remains sacrosanct, Mohammed, said: “Until we are through with all these, 2013 might not be a matter in focus, because we still have a lot of issues with the present budget.

  • 2013 budget must be precise, says Amaechi

    2013 budget must be precise, says Amaechi

    Rivers State Governor Rotimi Amaechi has said the state’s 2013 budget must be precise.

    Amaechi spoke in Port Harcourt during a three-day training for Ministries, Departments and Agencies (MDAs) on budget planning, implementation and monitoring organised by the Ministry of Budget and Economic Planning.

    He said the training would help the government assess the budgetary demands by MDAs in the implementation of government policies and programmes.

    Amaechi said: “The key to the 2013 budget is that it must be scientific to achieve government policies and programmes.

    “I will also demand a statistical breakdown of the budgetary demands by the MDAs to assess our spending.

    “The government will restructure the Civil Service and all Directors and Permanent Secretaries, who have served for eight years in either of the positions, would be retired and their pension paid to the Pension Board.

    “I am disappointed that there is low compliance with Information and Communications Technology (ICT) by civil servants. We will train civil servants who are deficient on ICT.”

    Amaechi said civil servants who are not ICT compliant and cannot draw up programmes relating to their ministry’s policies would not be promoted.

    He said the procurement of computers for MDAs would be included in the 2013 budget.

    Commissioner for Budget and Economic Planning Levi Gogo Charles described the workshop as “an avenue to understand the importance of budget preparation to achieving the government’s objectives”.