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Tag: 2015 Budget

  • 2015 budget focuses on diversification of economy -Okonjo-Iweala

    2015 budget focuses on diversification of economy -Okonjo-Iweala

    The Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, on Wednesday said the 2015 budget is structured for the diversification of the economy.

    Okonjo-Iweala spoke to reporters after laying the 2015 budget estimates before the Senate in Abuja.

    She said the budget seeks to protect average Nigerians.

    She said: “We have submitted the 2015 budget, the highlights are, the benchmark price for oil is $65 and production figure of 2.27m bpd.

    “We have estimated a Gross Domestic Product growth based on the circumstances of the country, which will be about 5.5 per cent.

    “This is down from the 6.35 per cent we had earlier from the National Bureau of Statistics, which is still one of the best growth rate in the World.

    “The budget seeks to protect the average Nigerian because the key is that it focuses on the diversification of the economy and it has been working because food prices have not risen in spite of the depreciation of the Naira.

    “If you check all around the markets, you will observe that the average Nigerian is still enjoying stable food prices.

    “In some places like Enugu, the prices of garri has even fallen. Inflation rate as estimated by the National Bureau of Statistics has fallen from 8.1 to 7.9 per cent.

    “This budget really focuses on moving us to diversify the economy and raise non oil revenue.

    “We have made up for the fall of $13 per barrel, from $17 to $65, by raising non oil revenue through various types of taxes and policies.

    “The surcharge on luxury goods is there, plus additional tax efforts to close leakages in revenue.”

    Senate President David Mark said the Senate would devote two plenary sessions to consider the budget before approval.

  • Okonjo-Iweala presents 2015 budget to NASS

    Okonjo-Iweala presents 2015 budget to NASS

    The Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Wednesday presented the 2015 budget estimates to the National Assembly.

    The document containing the budget estimates was presented to the two chambers of the National Assembly during separate sessions on Wednesday.

    Details later…

  • FG presents N4.357tr budget to Reps Wednesday

    FG presents N4.357tr budget to Reps Wednesday

    The Minister of Finance, Dr. Ngozi Okonjo-Iweala, will on Wednesday formally present the 2015 budget proposal before the House of Representatives on behalf of the Federal Government.

    Okonjo-Iweala, at a closed- door meeting held with the Speaker, Aminu Tambuwal and principal officers of the House, explained that there was need for the amendments of some parameters of the Medium Term Expenditure Framework in line with present realities.

    According to the MTEF obtained by The Nation, the 2015 average budget price was pegged at $65 per barrel against $77.50 per barrel in 2014.

    Oil production for 2015 was pegged at 2.278 million barrel per day against 2.388 barrel per day in 2014, while the exchange rate was pegged at N165 to a dollar against N160 to a dollar in 2014.

    The document further showed that the sum of N150 billion is for National Assembly, N73 billion will be for National Judicial Council (NJC) and N72.18 billion for Universal Basic Education (UBE).

    Also, N62 billion has been earmarked for Independent National Electoral Commission (INEC), N50.96 billion for transfer to NDDC, N2.50 billion for Public Complaint Commission, while N1.50 billion is for Human Rights Commission.

    For debt servicing, Federal Government proposed the sum of N894.61 billion for domestic debt, while N48.39 billion is for foreign debt. The sum of N91.03 billion was proposed for payment of subsidy on kerosene.

    The sum of N591.02 billion is expected from 13 percent derivation as Federal Government share of the oil revenue.

    For the recurrent expenditure (non-debt), Federal Government proposed N1.801 trillion for personnel costs, N216.56 billion for overheads, N228.81 billion for CRF pensions, while N376.05 billion is for other Service Wide Votes.

     

  • Reps row over 2015 budget presentation

    There were protests on Tuesday as the House of Representatives broke tradition for the second time running, to receive the 2015 budget from the Minister of Finance, Mrs. Ngozi Okonjo-Iweala, on Wednesday.

    This followed the adoption of a motion by the Deputy Leader of the House, Leo Ogor, that relevant rules be suspended to allow the minister present the budget on Wednesday.

    Last year, she laid the 2014 budget before the two chambers of the National Assembly instead of the President.

    She is set to do same on Wednesday.

    The decision of the House to receive the minister followed the receipt of the Revised Medium Term Expenditure Framework, the Universal Service Fund, as well as the reintroduction of 2015 budget from the President

    The leader of the Opposition, Femi Gbajabiamila, speaking under a point of Order said it was not dignifying for the parliament to receive the budget from the minister.

    He said it was understandable that the President was not in town last year for the presentation of budget, adding that it would be “bad precedence,” to allow Okonjo- Iweala do it a second time.”

    The lawmaker reiterated his last year’s warning that if the trend continues, the President may be tempted to send a Personal Assistant with the budget in the near future.

  • Fayose presents 2015 budget to seven PDP lawmakers

    Fayose presents 2015 budget to seven PDP lawmakers

    … APC kicks

    Ekiti State Governor, Ayo Fayose, on Monday presented the appropriation bill for the 2015 fiscal year to seven lawmakers of the Peoples Democratic Party (PDP) inside the hallowed chamber of the state’s House of Assembly.

    Fayose, who made the presentation to the PDP caucus led by factional Speaker Dele Olugbemi also declared that “nobody can remove Olugbemi from office.”
    The governor also vowed that any attempt to overrun the state will be resisted.

    The All Progressives Congress (APC) legislators were absent from the budget presentation ceremony which was witnessed by senior government officials and a handful of traditional rulers.

    All the legislators’ chairs were occupied as members of the public were allowed to sit in the hallowed chamber.

    There was massive security build-up around the Assembly complex with soldiers, riot policemen, operatives of the Department of State Services (DSS) and Nigerian Security and Civil Defence Corps (NSCDC) standing guard within the premises of the legislative chambers.

    Only the cameras of the Press Crew of the Governor’s Office and the Press Unit of the House of Assembly were allowed to cover the proceedings.

    Journalists from the electronic media were not allowed to record the proceedings with their cameras as they only interviewed the governor on the budget presentation when he was heading towards his car parked in front of the complex main door.

    The size of the budget presented by Fayose was N80.774 billion and it was tagged “Budget of Reality.”

    According to the budget estimate, N48.7 billion was earmarked for recurrent expenditure, while capital expenditure will gulp N31.9 billion

    Contrary to his earlier position that he would not borrow to run his administration, Fayose said would access N5 billion internal loans to meet up with some commitments.

    Fayose used the occasion to affirm his support for Olugbemi’s leadership” of the Assembly, maintaining that the “factional Speaker” would remain in office till June next year.

    His words: “You (Olugbemi) are the Speaker of this Assembly, I repeat, you are the Speaker of this Assembly and nobody can remove you from this position. I want to emphasize that this Speaker will remain there till June.

    “If they (APC lawmakers) like, they should be meeting and sitting in the Houses of Assembly in other states. Any attempt to overrun this state will be resisted by our people.”

  • Fashola presents 2015 budget to House

    Fashola presents 2015 budget to House

    Lagos State Governor, Mr. Babatunde Fashola (SAN), on Monday presented a budget proposal of N489.69 billion for the 2015 fiscal year to the Lagos State House of Assembly for approval.

    The budget which is the last to be presented by the governor is the same as that of 2014, which stood at N489.69 billion.

    The budget comprises capital expenditure of N249.232 billion (51 per cent of the total budget) and a recurrent expenditure of N239.948 billion (49 per cent).

    Fashola said the budget retains its zero deficit in order to ensure that the next government does not inherit a deficit.

    The capital to recurrent ratio of 51:49 for 2015 is the same as that of the 2014 budget.

    A breakdown of the budget showed that Economic Affairs has the highest allocation of N146.305 billion, followed by General Service (N107.69 billion), Housing and Community Amenities (N82.14 billion), Education (N49.033 billion), Health (N44.619 billion) and Environmental Protection (N34.953 billion).

    Others are – Public Safety and Order (N15.547 billion), Recreation, Culture and Religion (N3.118 billion), Social Protection (N1.589 billion), Planning Reserve (N2.26 billion) and Contingency (N2.448 billion).

    Fashola said,“ As you will observe, we have retained essentially the same budget size as 2014. This is for many reasons. One reason is that we have kept a zero deficit in order to ensure that the next government does not inherit a deficit. This will give them room to start off very quickly when their programmes begin to crystallize and they may need to raise funds in order to start off.

    “Another reason is that our budgets, like all good budgets are not only defined by plans and expectations, they make more sense if they are defined by resources. Our resources have been severely adversely affected by the management and lack of transparency of the Federal Government and her agencies of the nation’s oil proceeds.”

     

     

  • Jonathan cuts 2015 budget to N4.661tr

    Jonathan cuts 2015 budget to N4.661tr

    President Goodluck Jonathan on Wednesday cut the proposed 2015 budget of N4.817 trillion to N4.661trillion as a result of falling oil prices.

    The budget was reduced by about N63billion.

    The Federal Government also reviewed its proposed exchange rate upwards from N160 to N162 to $1.

    The proposed oil benchmark also dropped from $78 to $73 per barrel.

    The price of oil at the international market has since crashed from over $100 per barrel to less than $80 per barrel.

    The federal government’s position was contained in the revised Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) presented to the Senate on Wednesday by Jonathan.

    Jonathan’s letter entitled: “Submission of revised 2015-2017 Medium Term Expenditure Framework,” was read by the Senate President, David Mark, at plenary.

    The letter reads in part: “As you may recall, I had transmitted the 2015-2017 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the National Assembly for consideration and approval.

    “However, recent developments in the international oil market have necessitated that the MTEF be revised.

    “Consequently, following further consultations with key stakeholders, adjustments have been made to some of the key parameters as well as to some fiscal estimates in the MTEF.”

    Jonathan, however, expressed optimism that the MTEF/FSP would be expeditiously considered to bring the 2015 budget preparation to a quick close.

    Jonathan said: “I hereby forward copies of the reversed 2015-2017 MTEF to the National Assembly. I hope that it will receive your usual kind expeditious consideration in order to bring the 2015 FGN budget preparation process to a quick closure.”

    The government also projected N4.733.21 trillion and N4.930.29 trillion as expenditure for 2016 and 2017 respectively.

     

  • Dickson proposes N320.6bn 2015 budget

    Dickson proposes N320.6bn 2015 budget

    The Governor of Bayelsa State, Mr. Seriake Dickson, has presented a proposed 2015 budget of N320.6 billion to the state’s House of Assembly.

    Presenting the budget tagged: “Budget of Completion,” on Monday, Dickson said the estimate comprised N175.8 billion (54 per cent) recurrent expenditure and N144.9 billion (45.2 per cent) capital expenditure.

    He said the budget is expected to be financed from a revenue projection of N231.3 billion and capital receipts of N89.3 billion.

    Explaining the sectoral breakdown of the budget, Dickson said N65.9 billion was set aside for the Works and Infrastructure sub sector, while N21 billion was earmarked for Education.

    The governor assured that most of the ongoing projects in the health sector would be completed, especially the five new referral hospitals under construction.

    He said N7.1 billion was allocated to the health sub-sector to help in completing the Okilo memorial hospital and carry out rehabilitation work on over 30 health centres across the state

    On agriculture and natural resources, the governor proposed N4.2 billion.

    He also said the government would commence work on the new water reticulation network in the Yenagoa metropolis next year, which would be extended to the rural communities.

    He directed the state-owned electricity company and the Ministry of Power to liaise with the Port Harcourt Electricity Distribution Company (PEDC) to ensure improved power supply in the state.

    Dickson allocated the sum of N7.6 billion to the public utilities sub sector.

    He expressed government’s commitment to the completion of the two sports academies at Asoama in Kolokuma/Opokuma local government area and Angalabiri in Sagbama local government area.

    He, therefore, earmarked N4.2 billion to the sports sub sector.

     

  • 2015 budget: Govt may raise N2trn from domestic market

    2015 budget: Govt may raise N2trn from domestic market

    The Federal Government is to take N2 trillion domestic loans to stabilise the economy next year – no thanks to falling oil prices.

    The move is to bridge the wide gap that would be created by the huge deficit as a result of the fall in government’s projected revenue for 2015, The Nation learnt.

    This is against the background of the return of the 2015-2017 Medium Term Expenditure Framework (MTEF) and Strategic Paper Policy by the National Assembly to the Executive.

    Committee on Finance Chairman  Abdulmumini Jibrin said during an oversight visit to the National Sovereign Investment Authority (NSIA) that the National Assembly was returning the MTEF to the Executive for a review to reflect current realities.

    In the document, the Federal Government proposed a $78 per barrel benchmark oil price for 2015; $79 per barrel is for both 2016 and 2017. N7.286 trillion is projected from federally-collectible oil revenue up from N7.164 trillion for the outgoing year.

    Jibrin said: “Everything was good when crude was selling at $110, not now when it is free falling. We want to see how the situation can be mitigated.

    “Now, it means that the gap in the deficit will be wider. So, if you have sufficient savings, you don’t need to go back to domestic market when we keep complaining that government should exit. So, it means that now perhaps we have to go back to the domestic market.

    “Averagely, in the last three years, we’ve been taking N1 trillion; maybe this year we’ll be looking at N2 trillion or thereabout. So, the real sector will have the issue of interest rate that we’re talking about that would continue to skyrocket.

    “So, we have every reason now to look deeply towards savings and of course, we’ll continue to support the fund.”

    Managing Director of the NSIA, Mr. Uche Orji said the organisation began operations two years ago with $1 billion.

    NSIA investment portfolio, he said, consists of $200m in its Stabilisation Fund, representing 20 per cent of the total and that the Futures Generation Fund and the Nigeria Infrastructure Fund, received 40 per cent each.

    He said NSIA invested in six of the 18 areas it listed for investments. They are: power, gas processing, motorways, healthcare, agriculture and real estate.

    The House of Representatives has queried the implementation of the  2014 capital and recurrent expenditure by various Ministries, Departments and Agencies (MDAs).

     Deputy Chairman, House Committee on Finance, Abdulraham Terab, during an oversight function to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) yesterday said selective, inadequate and non-release of funds to MDAs were impediments to the growth of the economy.

     About N259.586b unremitted revenue was recovered by the Fiscal Responsibility Commission (FRC) from defaulting MDAs into the Consolidated Revenue Fund account, it was learnt.

    Terab said: “As always and usual, we are concerned with the lack of release. As you can see, this is one of the most important agencies.

    It depends on how they are able to conduct the exercise that will be able to know how much they are able to get and how much they are able to disburse.

     “For such a commission to be underfunded and starved with funds, at the end of the third quarter, they are done about 42 per cent of capital projects. It shows really that as a country, we have a lot to do.

    “So, the Committee is going to take it more seriously, we will pursue it. This year is a bit better, as compared to the last time we came. It was about 30 per cent but that improvement notwithstanding, we believe a lot needs to be done.”

    RMFAC Chairman Elias Mbam, noted that separation of the state and local government joint account would go a long way in improving governance at the grassroots.

    He said Local governments should be included in the monthly Federal Account Allocation Committee (FAAC).

  • Fashola presents 2015 budget Monday

    Fashola presents 2015 budget Monday

    Lagos State governor, Mr. Babatunde Raji Fashola, will on Monday present the state’s 2015 budget proposal to the House of Assembly.

    Majority Leader, Ajibayo Adeyeye, stated this at a plenary on Tuesday.

    The Nation gathered that Adeyeye made the disclosure following the receipt of the necessary communications from the Governor’s Office about the presentation.

    The presentation of next year’s budget proposal is some days behind that of 2014 which took place on November 3, 2013.