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Tag: budget

  • Fashola signs N11b reordering in 2014 budget

    Fashola signs N11b reordering in 2014 budget

    Lagos State Governor, Mr. Babatunde Fashola yesterday signed a bill to reorder the state’s Year 2014 budget.

    The reordering totaling N11.66b did not affect the initial size of the 2014 budget which still stands at N489billion.

    Signing the bill at the Conference Room, State House, Alausa, Fashola said the current health and security challenges as well as the reversal in school fees at the Lagos State University (LASU) necessitated the adjustment in the budget.

    According to the governor, the ordering was also necessitated to cater for “some hazard allowances and those types of things for people who do hazardous work and lately the unplanned but now compelling need to improve capacity to overcome the challenge of the imported Ebola Virus”.

    Explaining the effect of the reordering, Commissioner for Finance, Mr Ayo Gbeleyi said the difference was between the capital and recurrent expenditure, noting however that the change was not really significant.

    Gbeleyi said: “In this regard, we have a total of N11.66billion of our budget reordered. This is made up of N7.2billion reordered into recurrent expenditure and N4.46 billion into capital expenditure; so it’s just a slight reduction of one per cent in favour of recurrent expenditure.”

    Governor Fashola had two weeks ago, written to state House of Assembly to request for a re-ordering of the 2014 budget to address some exigent and pressing issues in the state.

    The budget re-ordering, according to the him, was necessary to meet demands for more public services, which are “sufficiently compelling and cannot wait until 2015”.

  • Ogun records 67 per cent half-year budget performance

    Ogun records 67 per cent half-year budget performance

    The Ogun State Government has recorded a 67.17 per cent half-year budget performance for 2014 as against 61.26 per cent recorded last year.

    Commissioner for Budget and Planning, Mrs. Oluwande Muoyo, disclosed this while briefing reporters.

    She attributed the improved performance to the concerted effort geared towards ensuring successful implementation of the allocations to every sector and the commitment of the Senator Ibikunle Amosun administration to transparency and accountability in the management of public resources.

    Muoyo, who noted that the performance has direct impact on the daily lives of the people, as evident in various developmental projects and improved security, appreciated the people for their continuous support to the administration.

    She assured that in a bid to strengthen the Internally Generated Revenue of the state which has hit N5 billion, the government would not overtax the people, as this could be counter-productive.

    She said it will strengthen its enforcement strategies and go after only legitimate taxes and levies.

    The commissioner reiterated government’s “readiness to complete all on-going projects and fulfill all its obligations to the people, not leaving out payment of salaries and pensions as when due, regular promotion of officers as well as training and retraining of the workforce.”

    “We appreciate the fact that the improved performance would not have been possible without the cooperation of the good people of the state who have continued to extend their goodwill to this administration and also support all its programmes aimed at rapid socio-economic development of the state. The government has therefore continued to strive hard to meet the expectation of the masses in terms of dividends of democracy,” she added.

  • Poor budget culture

    AT the graduation of King’s College, Lagos, penultimate week, the audience was shocked when the principal, Otunba Dele Olapeju said so far, the Federal Government had released only N3,950,993.00 (representing five per cent) of the N75,693,143 appropriated to the school for this year.

    He said the school has been able to meet some of its obligations through Internally-Generated Revenue (IGR) and support from the PTA, alumni and private endowments.  Were King’s College to be Loyola Jesuit, he said the N75 million would have represented only the fees of 75 pupils.  But at King’s College, the money is used to take care of a total of 3,058 pupils – their feeding, accommodation, instructional materials, maintenance, and other educational needs.

    Last year, the budget appropriated was N70,000,000; but the amount released was N28,888,773.  In 2012, N42.9 million was appropriated, N24.36 million was released.  In 2011, amount appropriated was N53.04 million, while N35.62 million was released; In 2010, N65.66 million was appropriated, but only N42.51 million was released.

    Mrs Abike Dabiri-Erewa, a lawmaker in the House of Representatives, who was guest speaker at the event, was surprised that the school was so poorly funded.  She said the money had been appropriated by the National Assembly and wondered why it had not been paid to the school.

    I wonder too.  The statistics provided by the principal showed a steady reduction in the percentage of the appropriated budget released since 2011.  How can such practice continue yearly?  What happens to the balance at the end of the budget year?

    But of greater concern should be how do the schools cope?  How can a school that is supposed to get N75 million for this year be forced to survive on N3.9 million up to the seventh month of the year?  The principal said they have been creative in making use of Internally-Generated Revenue (IGR).  But how far can their IGR go?  How much is it?  Is it enough to address the needs of 3,058 pupils?  Powering the generators alone runs into millions each month.  What about feeding, water supply, instructional materials and other costs?  How do they meet such needs?  If king’s college, one of most highly populated of the 104 unity schools does not get up to half of its budget yearly, what about the others?  What about the universities, polytechnic and colleges of education?

    Like Mrs Dabiri-Erewa rightly concluded that day, our government is toying dangerously with the future of the country by treating education with levity.  We know that there are so many loopholes through which funds meant for the general good find their way into private pockets.  But if we continue such practice, we only do so to our detriment.

    The new Education Minister, Mallam Ibrahim Shekarau, has his work cut out for him.  There are many areas of challenge.  We know it is one thing to have funds and another to use it judiciously.  However, releasing five per cent of the budget is very poor.  We should not expect any meaningful progress from such  promptly so our education sector can be managed effectively.

     

  • ‘Confab’s position on budget may lead to job loss’

    ‘Confab’s position on budget may lead to job loss’

    The recommendation of delegates at the on-going National Conference that the government should be shut in case of a delay in signing the budget by the President, may result in massive lay-off of workers, the Executive Director, African Heritage Institution (AfriHeritage), Dr. Ifediora Amobi,  has warned.

    He said a such shut is similar to a government strike, where provision of social services cease over a period of time, adding that the result is that payment of salaries will be  delayed, government programmes and projects will be disrupted (particularly in health, education and  power) with dire consequences for people who are dependent on these programmes. Also, financing gaps are created in critical sectors such as Small and Medium Scale Enterprises (SMEs), small scale farm projects, and others.

    The  economist lamented that it is wrong to make the average Nigerians pay for the inadequacies, and to a large extent, the incompetence of those in the legislative and executive arms of government who have refused to do their work efficiently.

    Amobi explained that the government shutdown is a situation created where the executive and the legislative arms of government cannot reach a compromise when it comes to signing the nation’s annual budget, thus creating a ‘funding gap’.

    “During the funding gap period, the government shuts down because there is no money to pay workers, to provide services, and so on,” he said.

    On the economic implications of the action, the AfriHeritage boss noted that the economic cost could be in billions of naira depending on the duration of the shutdown, reduction in the Gross  Domestic Product (GDP) by up to two per cent or more, job losses/layoffs as well as sharp cutbacks in hiring practices, lost man-days nationwide, with very high productivity losses, significant drop in consumer, business and investor confidence and negative image for Nigeria because it will affect visa issuing and passport services.

    He urged the delegates not to copy verbatim the situation in the United States (US) where it happened recently, saying the US constitution provides for an Anti-deficiency Act that requires the Federal Government to begin a shutdown of the affected activities if an interim or full-year appropriation is not enacted into law.

    “My recommendation is that we should not copy the US in toto as their practice also has profound economic consequences. “The 2013 shutdown cost the US government over $24 billion (averaging $160 million a day). With our present monitored system, Nigeria losses an average of $10.9 billion a year to oil theft.

    “Just imagine the grand loss during a shutdown period where the oil sector will no longer be monitored.

    “My overall position Is that the National Conference revisit their earlier rejected amendment to Section 59 (3) of the 1999 Constitution which stated that In the event that the budget is not approved by the 2nd of January, government should operate on the basis of 75 per cent of previous year’s budget as an interim measure to avoid a shut down,” he said.

    Delegates at the National Conference had agreed that to go forward, Appropriation Bills must be presented to the National Assembly on or before September 30 of every year, while the National Assembly must pass the bill within two months for Presidential Assent in December.

    The rationale is to stop any expenditure by the government in the event of a delay in the passage of the budget.

  • Senate passes N4.69tr 2014 budget

    Senate passes N4.69tr 2014 budget

    * Budget increased by N53billion

    The Senate Wednesday considered and passed a budget of N4,695,190,000,000.00 for the 2014 fiscal year.

    The amount represents an increase of N53billion of the N4,642,960,000,000.00 2014 budget estimates presented to the National Assembly by President Goodluck Jonathan through the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala on December 19, 2013.

    Of the amount, N408,687,801,891.00 was approved for statutory transfers against the N399,687,801,891.00 proposed by the executive.

    The sum of N712billion was approved for debt service as proposed.

    The Senate also approved the sum of N2,454,887,566,702.00 for recurrent non-debt expenditure while the sum of N1,119,614,631,407.00 was approved for capital expenditure for the 2014 fiscal year.

    The executive had proposed a recurrent expenditure of N2,430,665,361,597.00 and capital expenditure of N1,100,606,836,514.00.

    Major highlights of the approved budget are: Benchmark oil price – $77.5 per barrel; Crude oil production – 2.3883million barrels per day; Gross Domestic Product (GDP) growth rate – 6.75 per cent; Inflation rate – 9.5 per cent and Exchange Rate – N160.00 to $1.00.

    Others highlights are: Statutory Transfers – N408,687,801,891.00
    Debt Service       –     N712billion
    Recurrent Expenditure       –    N2,454,887,566,702.00
    Capital Expenditure         –    N1,119,614,631,407.00
    Aggregate Expenditure   –   N4,695,190,000,000.00
    SURE-P           –     N268,370billion

    The approved budget also contained the sum of N373.53billion for Education, N314.34billion for Defence/Ministry of Defence/Army/Air Force/Navy; N295.561billion for Police Formation and Commands; 214.946billion for Health, N145.021billion for Interior and N106,321billion for Works.

    It also  included  Presidential Amnesty Programme N63,281billion and  N7billion for the National Dialogue, among others.

    The report of the Joint Committee on Appropriation and Finance entitled: “A Bill for an Act to authorize the issue from the Consolidated Revenue Fund of the Federation, the total sum of N4,695,190,000,000 only, of which, N408,687,801,891 only is for statutory transfers, 712,000,000,000 only is for debt service and N2,454,887,566,702 only is for recurrent (non-debt) expenditure while the balance of N1,119,614,631,407  only, is for contribution to the development fund for capital expenditure for the year ending 31st December, 2014” was moved by Chairman, Senate Committee on Appropriation, Senator Ahmad Maccido (Sokoto North).

    The passage of the Bill followed a clause by clause consideration of its provisions by the Senate in the Committee of Supply.

    Maccido in his lead debate noted that the Appropriation Bill containing the estimates of revenue and expenditure of the Federation for the 2014 fiscal year was presented to the Senate by President Jonathan through the Minister of Finance and Coordinating Minister for the Economy, Dr. Okonjo-Iweala on  December 19, 2013.

    He stated that a Subsidy Reinvestment and Empowerment Programme (SURE-P) component of the budget to the tune of N268,370,000,000.00 for  2014 did not form part of the aggregate budget figure of N4,642,960,000,000.00 contained in the Bill, laid before the National Assembly.

    “This has however been captured in the final compilation of the Bill,” he said.

    In preparing the details of the 2014 Bill, according to Maccido, “the Committee adopted a benchmark price of $77.50 per barrel of crude oil.

    “The Committee also adopted the Executive proposal of crude oil production of 2.3883 million barrels per day (mbpd) and an exchange rate of N160 to US$1.

    The Appropriation Committee boss further observed that the 2014-2016 Medium Term Expenditure Framework and Fiscal Strategy Paper, upon which the 2014 budget was based, just like the previous editions, would require refinement and re­tooling  both in procedure and process.

    He added: “A major issue here is in the planning required and the engagement processes with all stakeholders which will have added effective value to the budget process, with obvious multiplier effect on the economy.

    “The drop in oil production volume as reflected in the budget estimates of the past two years remains a disturbing phenomenon. The obvious reason has been traced to the obstruction to oil production as a result of pipeline vandalism and crude oil theft.

    “The appalling state of budget implementation in the country is still a worrying recurring decimal for our economy.

    “Unspent funds that are rolled over into the economy only make a mockery of development which is a dire necessity across the nation. Government must be seen to be taking steps to improve on this.

    “The 2014 Budget, which is described as one of job creation and inclusive growth, deserves to urgently rise to the occasion to defend itself, in view of the yawning gap between employment created and the army of the unemployed.”

    He however recommended that the senate should consider and approve the Bill.

    There was a mild drama when Senator Ahmad Lawan (Yobe North) through a point of order observed that even though lawmakers complained about the N2billion intervention fund proposed for the Northeast states, the amount was passed as proposed.

    Senate President David Mark however replied that no changes could be made in the report before the Senate.

    Mark said that further representations would be made to the executive to remedy the situation.

    The Senate President also urged the executive to ensure that they adhere and strictly implement the budget as passed.

    He said: “I hope the Executive would work as hard as we have done and make sure they strictly implement the budget as passed.”

  • Budget 2014: The road to pension’s liberation

    Budget 2014: The road to pension’s liberation

    Revolutionary changes to the way savers can withdraw money from pensions, unveiled by George Osborne in the Budget last week, represent a remarkable victory for The Telegraph, which has repeatedly called for an end to years of rip-offs.

    From April next year the over-55s will be able to treat their pension funds like bank accounts, withdrawing as much as they require and using the cash for whatever purpose they deem fit.

    In a landmark reduction of the state’s involvement in British savers’ financial lives, the Chancellor said: “People who have worked hard and saved hard all their lives, and done the right thing, should be trusted with their own finances.

    “Pensioners will have complete freedom to draw down as much or as little of their pension pot as they want, any time they want. Let me be clear. No one will have to buy an annuity.”

    For the past nine months The Telegraph has worked tirelessly to expose how the broken pensions system has allowed the insurance industry to sell annuities to 400,000 people a year, locking them into a fixed annual payment for life.

    These products are a type of insurance, until now considered the “safest” route to a retirement income and appropriate for the majority of savers.

    However, last month the head of the insurers’ trade body, Otto Thoresen, finally indicated to reporters that too many people were sold annuities. The City regulator has concluded that hundreds of thousands of people are sold poor-value contracts each year.

    Our articles have led the agenda, warning readers of the dangers involved in purchasing an annuity, which is an irreversible transaction.

    Last October we disclosed how thousands of men were locked into artificially depressed rates in the final six months of 2012.

    We have implored readers to take matters into their own hands and approach their pension provider with extreme scepticism when they reach retirement. In November we called on Steve Webb, the pensions minister, to tackle excessive annuity charges.

    A report published that month in The Sunday Telegraph disclosed how insurers pocketed £63m a year by directing savers into pensions designed for “super-healthy” people who lived to an average age of 93. In the worst cases, savers were dying before their original capital was returned to them.

    We gave practical guidance on the alternative to annuities: keeping your pension invested and taking a gradual income through “drawdown”.

    However, our report in December exposed how insurers – which make hefty profits on annuity sales – were obstructing savers who wanted to use this option.

    Reporters from this newspaper have given presentations to members of the House of Lords and our reports have been used in Parliament to highlight the need for reform.

    Finally, our calls for action have been answered. As we explain on page 6, a raft of new measures is to be introduced next week to alleviate the burden on pensioners nearing or in retirement that have not yet purchased an annuity. Then, from April next year, the choice of whether to buy an annuity will rest entirely with customers.

    Simon Blowey of Brewin Dolphin, the wealth manager, said: “We now have pensions for grown ups; the nanny state has been withdrawn.”

    This is only the start of the pension’s revolution. The Telegraph will endeavour, over the coming weeks and months, to publish comprehensive guidance to help readers take advantage of the new rules.

  • Tornadoes FC budget N164m for 2014 season, abolish sign-on fees

    Tornadoes FC budget N164m for 2014 season, abolish sign-on fees

    Dattijo Aliyu, the Chairman, Management Committee, Niger Tornadoes Football Club of Minna, on Friday said N164 million has been set aside to fund the club’s campaign in the 2013/2014 season.

    Aliyu, who disclosed this in Minna while speaking with the club’s players and technical officials, charged them to ensure that they win the Nigeria National League (NNL) this season.

    “Our budget for this new season is N164 million, and we have also abolished sign-on fees in line with the directive of the league organisers’’, he said.

    The club chairman said N8 million would be released monthly by the state government to the management to cover players’ salaries, allowances and other cost of running the club.

    Aliyu said machinery had been put in place to ensure a sustainable release of funds to the club, assuring the players and officials of their adequate welfare. He said the highest paid player with the club receives N195,000, while the least paid gets N110,000 per month.

    ”The payment has been designed in a way to cover the loss of the sign-on fees and also take care of other allowances,” Aliyu said.

    The club chairman said the management was working to ensure prompt payment of salaries and allowances of new players, before settling the backlog of arrears emanating from the abolished sign-on fees.

    He urged the players and technical crew to win their matches, saying the club management would ensure they get their match bonuses immediately as a way of encouraging them.

    Aliyu also advised the players to respect the club officials and match officials, saying this will help to enable them win their matches.

    Also speaking, Godwin Uwua, the club’s Technical Adviser, said he and his technical crew colleagues would do everything possible to ensure victory in their upcoming matches. The News Agency of Nigeria (NAN) reports that Niger Tormadoes hosted Abuja-based Supreme Court FC in an NNL Group A week one match.

    ”By God’s grace, we will win our matches to make the government and people of Niger happy,” the Tornadoes FC Chairman said.

     

     

     

  • Lagos council to spend N2.3b on roads, others

    The Bariga Local Council Development Area (LCDA) in Lagos State plans to spend N2.3 billion in the year, its Chairman, Hon Omoyele Akeem Sulaimon, has said.

    Speaking at the weekend at the Council headquarters while presenting its 2014 budget tagged ”Budget of assurance” to legislators, he said the adminstration would consolidate on its past achievements.

    He said capital expenditure would take the largest part of the budget as about 37.75 per cent amounting to N892.776 million allocated to it.

    Works, housing and infrastructure got N644.646 million, education N132.481 million, health N54.059 million while agric, rural and social development is allocated N50.589 million, among others.

    The council allocated 14.36 per cent of the budget or N339.524 million to personnel emolument; 22.73 per cent or N537.629 million to teaching and non-teaching staff salaries while N595.184 million or 25.17 per cent of the budget is slated for overhead costs.

    He said the council would generate N66.369 million or 2.81 per cent of the budget internally and receive N1.109 billion or 46.89 per cent from the Federation Account.

    Oher sources are Value Added Tax (VAT) N1.140 billion or 48.21, per cent and grants from the State N49.480 million or 2.09 per cent.

    The chairman listed the over 20 roads that were either constructed or rehabilitated across the Council last year and promised that this year, at least 24 roads will be taken care of.

    On why he lays emphasis on roads and why roads in the LCDA gets bad very fast, he said the reason is because Bariga is situated under sea level. To overcome these challenges, he said the Council has employed the services of an expert for the Council and the result can be seen on the quality of roads built by its Works Department last year.

    On the crime and the worrisome security situation in the area, Hon Akeem assures that the Council administration is doing everything possible to ensure all law abiding citizens within the LCDA live securely.

    To ensure the Council realizes its set internally generated revenue target, he said the Council has documented all the streets and business within the locality. This he said has given them idea of how much they will generate from each street and everything is computerized. Any shortfall will be traced easily, he stated.

  • Will Lagos achieve its target of zero-deficit budget?

    Will Lagos achieve its target of zero-deficit budget?

    The Lagos State 2014 budget is expected to focus on infrastructure development, poverty alleviation and completion of ongoing projects. COLLINS NWEZE analyses key components of the budget and the economic implications.

    The Lagos State 2014 budget shows that total revenue will rise from N416.32 billion in 2013 to N466.50 billion, an increase of 12.05 per cent, according to the Commissioner for Economic Planning and Budget, Mr Ben Akabueze.

    At the budget’s analysis forum in Lagos, Akabueze said N139.3 billion would come from transfers from the Federal Government as revenue allocations. The recurrent expenditure will rise from N214.72 billion last year to N234.66 billion this year, representing 9.28 per cent increase.

    The N489.69 billion budget is 3.43 per cent lower than the N507.1 billion for last year.

    This year’s budget, he said, would record a zero per cent deficit, with recurrent expenditure standing at 48 per cent of the total budget, while capital expenditure accounts for 52 per cent.

    An analysis of the budget showed that Internally Generated Revenue (IGR) will constitute the bulk of the state’s income. The state will generate N327.20 billion from IGR, with N265.86 billion coming from the Lagos Internal Revenue Service (LIRS); other agencies will account for N37.67 billion.

    Akabueze said the government’s targets for this year are to complete two Independent Power Projects as alternative energy, rehabilitate and maintain existing street light infrastructure, develop enterprise zones in Ikorodu and Yaba, complete the expansion of Mile 12 to Ikorodu Road, among other projects.

    Akabueze said the budget would assist the state to fast-track infrastructural development. “As a state government, we have continued to emphasis that our limiting factor is revenue. The more money that a government has, the more it can deliver quality goods and services. “Unlike 2013, where we projected a deficit of N79.8 billion, for 2014, we are not projecting any deficit. Our total revenue will cover our total expenditure for this year.

    “That is in line with our strategy on fiscal deficit and debt sustainability. You will recall that towards the end of 2013, we had to accelerate our bond issuance programme. For 2014, we project no bond issuance,” Akabueze declared.

    On the planned implementation strategies for the 2014 budget, the Commissioner said the government would intensify its revenue generation drive, pointing out that it was aimed at further reducing the dependence of the state on federation account allocation.

    He said the government would also intensify the tracking of monthly revenue performance of ministries, departments and agencies (MDAs) by his ministry, adding that budget performance would also be monitored through rendering of monthly expenditure returns by MDAs.

    Some other strategies, according to the Commissioner, include deliberately keeping recurrent expenditure performance below revenue performance and adherence to Capital Expenditure Readiness (CER) checklist to ensure adequate project preparation and monthly and quarterly budget appraisal by the Planning Units of MDAs.

    He appealed to citizens to play their roles, including paying their taxes regularly, providing information to security agencies and patronage and protection of public facilities and infrastructure.

    Akabueze explained that the highest allocation went to the Economic Affairs sector in line with the policy thrust of the government on infrastructure. He also said social sectors, such as health, housing and education were also accorded priority.

    He listed deliverables under Economic Affairs to include accelerated food expansion programme such as rice production, development of coconut plantation, animal husbandry, expansion of agric YES project, massive production of asphalt and using same for road rehabilitation and expansion, improved water transportation, among others.

     

    Oil benchmark

    The annual budget of the state is generally followed with keen interest. Lagos State Governor, Mr. Babatunde Fashola (SAN), recently signed the 2014 budget of N489.69 billion, whose focus is aimed at ensuring the completion of ongoing projects, while consolidating on previous achievements.

    The budget was predicated on the assumption of an oil production of 2.38million barrels per day, an inflation rate of 7.9 per cent, exchange rate of N160/$1, oil price of $77.5bp and an efficient system of internally generated revenue collection.

    According to him, with the signing of the budget, “we are giving this budget the required push to ensure optimum implementation. This signing is a signal that we must get ready to commence full work.”

    The critical focus areas for the budget are power, agriculture, transportation, housing, security (law and order), education, health, environment, e-governance, rural development, water and skills acquisition/microfinance.

     

    Lagos debt profile

    The state’s Commissioner for Finance, Ayodeji Gbeleyi said the state’s total debt stock currently stands at N435 billion. He said a total of N275 billion of the debt, are in bonds, with N50 billion five-year bonds will be redeemed next month.

    Other bonds issued by the state include N57.5 billion seven-year bond issued in 2010 maturing in 2017; N80 billion seven-year bond maturing 2019 and N87.7 billion seven-year bond maturing in 2020.

    Gbeleyi said the full principal repayment for the N50 billion bonds will be provided by Sinking Fund currently managed by trustees. He said the state’s debt to Gross Domestic Product (GDP) ratio stands at 2.98 per cent, which is far less than 20 per cent benchmark for developing economies. He said the state’s debt remains sustainable and responsible, and is well rated by global rating agencies.

     

    Budget analysis

    The breakdown of the budget shows recurrent expenditure of N234.655 billion in the year, representing a 9.28 per cent increase over the N214.729 billion budgeted in 2013. Under the recurrent expenditure, a total of N87.921 billion was budgeted for personnel cost, as against N83.958 billion last year, while overhead cost in the 2014 budget stood at N146.744 billion, compared to N130.771 billion budgeted for last year.

    It also shows the state plans to generate total revenue of N466.506 billion this year, as against the N416.328 billion it budgeted in 2013. Out of this amount, the budget estimates shows that N327.206 billion would come as Internally Generated Revenue this year.

    In addition, N255.025 billion was budgeted for capital expenditure this year, representing a decrease from the N292.376 billion last year. The sectoral allocations also revealed that N101.834 billion was allocated to general public works; N18.027 billon for public order and safety; economic affairs was allocated N158.646 billion; and N39.534 billion went to environmental protection.

    Similarly, housing and communities amenities was allocated N50.463 billion; N37.813 billion for health; N3.482 billion for recreation, culture and religion; education got N74.424 billion while social protection was allocated N2.467 billion.

    Analysts said the government’s plan to deliver on key infrastructure projects and reduce poverty remains laudable adding that it is only when the budget targets are met that its impact would be felt by the population.

    However, the state government said it is committed to systematically deploying all the necessary resources that would ensure the effective and qualitative execution of different projects highlighted in this year’s budget.

     ‘Lagos is Nigeria’s economic livewire’

    Lagos State’s Gross Domestic Product (GDP) which stands at $32 billion is equal to Ghana’s after 2014 rebasing of Nigeria’s, Renaissance Capital (RenCap), an investment and research firm has said.

    In a report obtained by The Nation, the firm said Lagos constitutes the bulk of Nigeria’s $284 billion GDP, which is expected to be rebased by this year.

    Rebasing is the recalculation of the GDP to include growth in new sectors like telecoms and the Nollywood industries.

    It said Nigeria’s economy is clearly Lagos State, which it said produces 12 per cent of Nigeria’s GDP. “Post rebasing – which we now expect in early 2014 – we estimate a 40 per cent upward revision in the country’s national income. By our estimates, Lagos State economy will become Africa’s 13th biggest economy in 2014, at $45 billion – equivalent to that of Ghana,” RenCap said.

    It said focusing on the middle class, consumer companies are likely to find the greatest opportunities in states with the highest purchasing power, including Lagos and Abuja, as well as Oyo, Osun in the southwest (SW), Kaduna and Nasarawa (both adjoining FCT) and the Niger Delta states.

    It also sees opportunities for banks to expand services and employees into states that have a combination of high income and high population density, as this will provide the step required to open bank branches.

    Equally, states that fit this profile are Anambra, Imo and Abia in the southeast region; Akwa Ibom and Rivers in the Niger Delta region; and Osun in the Southwest.

    RenCap said consumers are more likely to buy branded goods in the FCT Abuja, Lagos, Delta and Rivers states. This, it inferred from these states’ relatively low food spend/total consumption expenditure, which implies relatively high discretionary income.

    It said these states may also drive air travel, and may prove to be higher value-added customers for telecoms companies.

    “We believe food retailers have expansion opportunities in states beyond the southern region that are characterised by relatively high food spend, such as Nasarawa, Niger and Kaduna. We also note that food spending is relatively high in states that are further afield, such as Borno, often with politically volatile capital cities, such as Maiduguri. We think food retailers can capitalise on such states by focusing on second- and third-tier cities – a strategy that has borne fruit at Nestlé Nigeria, through revenue growth,” it said.

    RenCap said the most educated workforce in coming years will also be apparent in the south and SW, where at least 60 per cent of children complete secondary school. “We think education levels in the south and SW is likely to spur even faster growth, as we have seen in emerging markets globally,” it said.

    It said Katsina and Kano, in the north, employ one-fifth of the country’s manufacturing workforce, largely in the textile industry, which is one of the country’s biggest non-agriculture employers. It expects the success of the electricity privatisation process to significantly reduce high operating costs.

    It said wholesale and retail trade is the biggest employer in the Southwest; however agriculture dominates employment in most of the country. We believe proximity to the country’s ports (Lagos Port Complex accounts for 47 per cent of country’s cargo traffic) largely explains trade’s dominance in the Southwest, and explains why it is also the fastest-growing sector, behind telecoms,” it said.

     

  • House shoots down debate on budget

    House shoots down debate on budget

    • Scales second reading in Senate

    THE House of Representatives has shotdown debate on the N4.64 trillion budget till next week, following arguments between members.

    The Chairman and deputies of three Committees of the House, Rules and Business, Justice and Judiciary, were yesterday mandated to look into the legality of the issues raised and report to the House within 24 hours.

    The Speaker of the House, Aminu Tambuwal stood down the consideration of the budget after tense debates from two opposing camps of the Peoples Democratic Party (PDP) and the All Progressives Congress (APC) members at plenary.

    But another disclosure from the Speaker that both the House and the Senate have agreed to postpone plenary till next week to allow APC members register, further dimed the chance of the budget being considered till next week.

    It would be the second time the debate on the N4.6 trillion budget is being put off. Last week, it was postponed to give way for the voting on the constitution amendment.

    Trouble started when Emmanuel Jimeh (APC, Benue) immediately raised a point of constitutional order after the 2014 Appropriation Bill was mentioned for second reading.

    Jimeh said the presentation of the 2014 budget was in breach of the Fiscal Responsibility Act, 2007.

    According to him, the budget was meant to have been accompanied with the details of the estimates of the Central Bank of Nigeria (CBN), Nigeria Ports Authority and the Nigerian National Petroleum Corporation (NNPC ) and other revenue generating corporations and agencies of the Federal Government.

    Section 21 of the the Fiscal Responsibility Act, 2007 lists the CBN, NNPC, Nigerian Ports Authority (NPA), Federal Inland Revenue Service ( FIRS), National Communication Commission (NCC), Federal Airport Authority of Nigeria (FAAN), National Agency for Food & Drug Administration & Control (NAFDAC), Nigerian Customs Service (NCS), Securities and Exchange Commission ( SEC) and Nigeria Deposit Insurance Corporation (NDIC) as part of corporations, agencies and government owned companies whose details must accompany the budget to the National Assembly.

    Others include the Bureau of Public Enterprises (BPE), Corporate Affairs Commission (CAC), Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA) and National Maritime Authority (now NIMASA), among others.

    Jimeh further said what Sub-section 3 of the FRA demands is that details of the budget of the listed corporations, agencies and companies accompany the budget to the National Assembly.

    “What I have and what other members are holding is a purported summary. The law requires that the estimates of these corporations and agencies be attached to the budget. The Minister has no right to give us her own summary. I want to ask what is the danger of not giving us the estimate?

    The lawmaker said if the National Assembly had put its foot down previously on the submission of the details, the incidence of the missing $10.8 billion from the coffers of the NNPC would not have occurred.

    He cited Section 11 (1,2,3) of the Act that stipulates that estimates must accompany the budget.

    “What accompanied the purported budget was a summary rather than the estimates. For instance. If the estimates of the NNPC has been submitted with the 2013 budget proposal, the House would have known where the missing $10billion is.

    “The House should not allow them reach the laws it passed and should not encourage the Executive to continue to engage in breaching the law.This particular budget has breached our law. This parliament must not encourage the President to continue to breach our law. We must not allow ourselves to do the wrong thing for the convenience of the moment. History will not judge the House well for sitting back when the law is breached.”

    But the Chairman of the House Committee in Appropriation, John Enoh ( PDP Cross Rivers) disagreed with the submission of Jimeh when Tambuwal called him to explain the issue.

    “I disagree that the estimates are in the breach.The struggle to get the Executive to comply has been long. Year in, year out, the National Assembly kept insisting. In the past two to three years, the Executive has been in full compliance.

    “The question is: are the estimates abridged or not? My colleague (Jimeh) says it is abridged, but he agrees that estimates accompanied them.

    “It becomes a different thing altogether what the National Assembly decides to do with the estimates. In the 2013 budget, it came the way the 2014 came. There is no time that in the course of passing the budget, that we said we can’t pass it because of the budgets of CBN, NPA, NNPC.”

    At this point members in support of Jimeh’s position shouted “No! No! No!”

    But Enoh ended his argument, saying that the budget of any country, particularly Nigeria, is the most important document before the parliament. “There is none that is as significant and as important as the budget,” he said.

    At this point, Tambuwal ruled, saying what Jimeh said is a valid. He said it was because of the sensitivity of the budget that he called Enoh to explain the issue.

    He appointed the Chairman of the House Committee on Rules and Business, Abert Sam-Tsokwa and his Deputy, Sunday Adepoju, the Chairman, Committee on Judiciary, Aminu Shehu Shagari and his deputy, Ken Chikere, and Chairman Committee on Justice, Ali Ahmed and his deputy, Emeka Nwaogbo to examine the issues and report to the House within 24 hours.

    Meanwhile, the budget has scaled second reading in the Senate.

    The Bill has generated a lot of controversy since the Senate started its debate on January 28.