The Nation Newspaper

Tag: Fed Govt

  • Fed Govt plans $1.1b Euro bond

    Fed Govt plans $1.1b Euro bond

    • Seeks Senate’s approval for $200m loan

    The Federal Government is set to issue $1billion Euro Bond as well as $100 million Diaspora Bond.

    The government is also seeking Senate’s approval to borrow additional $200 million to fund pipeline projects.

    These are contained in a letter President Goodluck Jonathan wrote to the Senate.

    The letter entitled: Amendment to the 2012-2014 Medium Term External Borrowing Plan, was dated November 7, 2012, and read on the floor by Senate President, David Mark, yesterday.

    The letter is coming few weeks after the Presidency sought the approval of the Upper House to borrow $7.9 billion for pipeline projects.

    President Jonathan said the $1billion Euro Bond is in “continuance of the programme initiated under the administration of President Umaru Musa Yar’Adua as well as a $100million Diaspora Bond.”

    He explained that $200 million out of the $500 million would be expended on provision of water supply, while $300 million would be swapped with the proposed guarantees for the power sector in the draft borrowing plan.

    The letter reads in part: “I wish to refer to my earlier letter in respect of the above subject and to inform you of two amendments to the 2012-2014 Medium Term External Borrowing Plan.

    “First, we would like to include a $200million water supply project being planned for Rivers State.

    “This project would be financed by the African Development Bank and shall provide potable water supply to residents of Rivers State.

    “Secondly, the Federal Government is currently developing a low-income housing finance facility to support the provision of affordable homes for Nigerians.

    “This scheme will be financed using a $300million credit facility from the World Bank. We would like to swap this new $300million facility with the proposed guarantees for the power sector in the draft borrowing plan, thereby ensuring that we do not increase the overall size of loans proposed in the external borrowing plan.

  • Fed Govt votes N500m for software development

    Fed Govt votes N500m for software development

    The Federal Government, yesterday said it had released N500 million as part of the $15million Technology Venture Capital Fund needed to grow the nation’s local software economy.

    It will be used in the development of software incubation programmes in the country.

    Addressing a forum on software incubation in Lagos, the Minister of Communications Technology, Mrs. Omobola Johnson, said the fund will be seeded through the Nigeria Information Technology Development Fund (NITDEF). She added that the government’s seed fund would attract the remaining $12 million from investors locally and internationally.

    The minister said as part of efforts to grow the software sub-sector of the ICT industry and make it contribute substantially to to the gross domestic product (GDP),  the government came up with the idea of setting up incubation centres with the pilot project located in Lagos and Calabar,  the Cross River State capital.

    Mrs. Johnson said the e-Learning Centre would host the software incubation centre in Lagos, while Tinapa Knowledge City would house the Cross River State’s innovation centre.

  • Fed Govt, states, others to develop industrial clusters

    The Federal Government is set to work with 36 states and other stakeholders to develop industrial clusters in the country, the Minister of Trade and Investment, Olusegun Aganga, has said.

    The minister spoke in Abuja when members of the steering committee on Pan African Competitiveness Forum (PACF) paid him a courtesy visit.

    Aganga said the clusters would be developed based on comparative and competitive advantage, and that their establishment would boost the economy through the creation of jobs and wealth.

    He said the government was also poised to revive the One Local Government, One Product scheme.

    Aganga expressed concern that funding had been a major challenge to the development of Small and Medium Scale Enterprisies (SMEs) in the country.

    He said government would endeavour to create the right environment for SMEs to thrive.

    The minister expressed the commitment of the government to work with the Forum to realise PACF’s objectives.

    The PACF Steering Committee was led on the visit by Prof. Peter Onwualu, Director-General, Raw Materials Research and Development Council (RMRDC).

    Onwualu explained that the development of modern clusters could lead to the creation of about 30 million jobs in the country.

    Onwualu, who chairs the committee, said its members visited the minister to brief him on the Fourth annual continental conference of PACF to be hosted by Nigeria.

    He said the conference would focus on the development of clusters with to create jobs and wealth among member states.

  • Fed Govt to get $77.73m loan from France

    Fed Govt to get $77.73m loan from France

    THE Federal Government is to receive a $77.73 million loan from the French Development Agency (AFD) to co-finance the second National Urban Water Sector Reform Project (NUWSRP2) in Cross River and Lagos states.

    According to a council memo, the Co-ordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, will present the matter for deliberation to the Federal Executive Council today.

    Also at the FEC’s meeting, the government is expected to award a N600 million contract for the purchase of Direct Data Capture Machine to boost the collection of Value Added Tax (VAT).

    The contract will first be revised at the meeting before the award is granted to the successful contractor that will supply the machines.

    According to the memo seen by The Nation, the first item on the day’s agenda is “the revision of the contract sum for the procurement of Direct Data Capture Machines to enable the payment of VAT amounting to $3,750,760 on the importation of the Direct Data Capture Machines.”

    Also, the Federal Government will increase the contract price of food stuff to be supplied to prisons across the country. A memo earlier circulated by the Minister of Interior on September 21, will urge members of the Federal Executive Council (FEC) to consider increasing the “contract prices for supply of food stuff and cooking gas for prisoners.”

    The Nation also gathered that contracts will be awarded for the rehabilitation of the ECOWAS secretariat in Abuja, going by another memo expected from the Minister of the Federal Capital Territory, as well as the “contract for the augmentation of per/post contract consultancy services for the improvement of power supply to the Murtala Muhammed International Airport, Lagos. The memo will be presented by the Minister of Aviation.

    Approval is also expected for the award of contract for the construction of the Sagbemi-Kirigbo-Gada-Igbekibo road in Ondo State, as well as the ratification of the President’s anticipatory approval for the ward of contract in respect of 28 infrastructure development projects for the Niger Delta Development Commission (NDDC).

    The last two items on the agenda for today’s FEC meeting are those presented by the Minister of Works for the augmentation of contract NO 1793 for the dualisation of the Ibadan-Ilorin road section 1 Ibadan-Oyo road in Oyo state and addendum No 2 for the extension of the service lanes from KM0+000 (River Niger Bridge Head, Onitsha) to KM1 +000 and rehabilitation of slip roads at Upper Iweka interchange in Onitsha Anambra state under contract number 6134.

  • Fed Govt to diversify from oil to non-oil export

    Fed Govt to diversify from oil to non-oil export

    IN its quest to grow additional streams of income for the country, the Federal Government has hinted of plans to diversify the economy towards non-oil exports.

    This, the government said, is to reduce Nigeria’s over dependence on oil for substantial percentages of the country’s Gross Domestic Product (GDP) and foreign exchange.

    The Director, Special Duties Olajide Mohammed, the Nigeria Export Promotion Council (NEPC), noted that product diversification is the key to Nigeria’s sustained economic development; hence the continued dependence on crude oil as Nigeria’s main foreign exchange earner must be discouraged given that it was an exhaustible commodity characterised by price fluctuation.

    He said, “This brings to fore Nigeria’s abounding potentials in human and natural resources including solid minerals, agricultural commodities and manufacturing were highlighted as veritable areas of investment, which would guarantee sustainable development, since they would provide wealth, create jobs and alleviate poverty.

    “Based on this an appeal is being made to the government to address the infrastructural deficiencies that challenged Nigeria’s growth in these areas. Continually negotiate bilateral, regional and multilateral agreement in relation to the country’s export trade, this is to intensify public private partnership and ensure the realisation of national economic and industrial growth.”

    Expatiating, he said: “There is also need to explore more creative ways of attracting funding to the non-oil sector develop and implement a new Nigeria non-oil export development strategy by ensuring consistency.”

  • Lagos urged to collaborate with Fed Govt, Ogun on mega city

    •Town planners seek relocation of Okobaba saw millers to Agbowa

    Town Planners in Lagos have called on the state government to reactivate and reexamine the immediate and long-term impact of the moribund Lagos City Development Authority.

    They urged the state on the need to collaborate with the Federal and Ogun State governments on physical developments to align with the planned mega city project.

    They stated this at their Annual General Meeting (AGM) in Ikeja.

    Chairman, Nigeria Institute of Town Planning (NITP) Lagos, Mr Makinde Ogunleye, frowned at a situation where the government and, sometimes, the commissioner are involved in the approval of certain level of planning documents.

    He called for the development and implementation of local plans by the local planning authority in line with the provisions of the existing laws and regulations.

    On the spate of illegal developments, Ogunleye said: “To arrest the spate of illegal development in the state, government should revert to the operation 30/30templates and allow the issuance of development permit by the state agency in charge of planning matters, the district and the local planning office.

    “The governor has no business in the development permit process except on special cases when such proposal was not contemplated in the prevailing approved physical development plan.”

    He stressed that if the advice is heeded, the existing bottleneck in the building plan approval process would be removed and means of doing business in the state enhanced.

    On excised villages, he called for stronger efforts towards the preparation and award of local plans, particularly layouts and development guide plans for the villages.

    The NITP boss stressed that except that is done, the government would be indirectly encouraging the growth of slums and blighted areas in the metropolis, saying the land owners need professional guide to keep the sanity of their communities and surrounding towns.

    Speaking on the long standing controversy on Okobaba saw millers and their relocation, he asked that they should be urgently relocated to Agbowa to aid them to thrive in a conducive environment.

    He made a case for a quick release of the state Geographic information System (GIS) to the public, noting that if this is not done as soon as possible, the GIS may be out of date for any meaningful reference and use by the people.

    In the same vein, he called for a drainage master plan for the state based on expected use, especially in these days of heavy rain.

  • Flood: Uduaghan seeks help from Fed Govt, others

    Flood: Uduaghan seeks help from Fed Govt, others

    Delta State Governor Emmanuel Uduaghan has urged the Federal Government, corporate organisations, the private sector and philanthropists to assist flood victims in the state.

    He said over 100 communities in 10 local government areas have been submerged.

    The local government areas include Patani, Isoko South, Isoko North, Ndokwa East, Bomadi, Burutu, Oshimili North, Oshimili South, Ughelli North and Ughelli South.

    Speaking in Asaba, the state capital, while reviewing the damage done by flooding, Uduaghan said the situation is beyond the state government’s control.

    He described the situation as “grave and grim”.

    Uduaghan said the River Niger has spread over its banks and its tide is increasing daily.

    He said: “Within three days, the number of communities affected increased astronomically. As I speak, there is the fear of total flooding of the affected communities.”

    Describing the situation as “devastating and a huge challenge”, the governor said most of the rehabilitation camps are already housing about 100,000 displaced persons each.

    He said mattresses, food and medical facilities were being arranged for the victims.

    Uduaghan urged the Federal Government, corporate bodies, Non-Government Organisations (NGOs) and individuals to partner his administration to bring succour to the victims.

    He said two deaths have been recorded.

    Uduaghan said the committee set up to tackle the challenges of flooding, headed by Deputy Governor Amos Utuama, was working round the clock to alleviate the victims’ suffering.

    He urged the committee to ensure that relief materials get to the victims.

    The governor urged the committee to set up sub-committees comprising residents of the affected communities, to distribute relief materials to victims at rehabilitation centres.

    He urged residents of flood-prone areas to relocate, adding that the government is ready to assist them.

    Uduaghan said: “The river is surging into the communities on a daily basis and increasing in tempo. Let everyone in flood-prone areas come out before it is too late. A stitch in time saves nine.”

    Utuama said it was becoming “increasingly difficult” to access some of the affected communities.

    He said the rehabilitation camps are secured and thanked NGOs, particularly the Red Cross Society, for their support.

    Utuama said the committee would work day and night to bring succour to the victims.

    Commissioner for Special Duties Tony Nwaka said individuals or organisations who wish to assist the victims can call the following numbers: Lagos: 08023270542, 07035010323, tinaonokpise@yahoo.com

    Abuja: 08034534318, 08086661344, restoreinitiative@yahoo.com

    Warri: 08124537414, patrickorigho@yahoo.com

    Asaba: 08037230004, 08034016121, tonynwaka@yahoo.com; julieyoung15@gmail.com

    Uduaghan: 07057007888, 08127770002, 08127770003.

  • Drop in oil revenue: Fed Govt, others to draw from solid minerals’ fund

    Drop in oil revenue: Fed Govt, others to draw from solid minerals’ fund

    The three tiers of government have agreed to source for more funds from proceeds of solid minerals – no thanks to a fall in revenue last month.

    The Chairman, Forum of Commissioners of the 36 states of the federation, Timothy Odaah, told journalists in Abuja that the drop in oil revenue witnessed during the last Federation Account Allocation Committee meeting, was a temporal phenomenon that would not have significant impact on the nation’s economy.

    He said: “You have heard contributions being made and what is on ground now is that solid minerals should also be included as the basis for derivation and the essence is to encourage states because almost every state in the nation has some solid minerals or oil buried in their land.

    “If that is done, it would be an incentive because we have seen dwindling economy all over the world.”

    He added that the clarion call is that every state must do a lot in order to beef up their internally generated revenue.

    Odaah said the development would improve at the next FAAC meeting, adding that there is much understanding because “we wouldn’t have agreed totally but the circumstances have made us to agree to the terms and by next FAAC, there would be much more improvement.”

    He also called on the states to diversify their revenue in order to boost developmental projects.

    The country suffered a huge decline of N260. 512 billion in gross revenue last month.

    The Accountant General of the Federation, Mr. Jonah Otunla had disclosed that the drop from N825.396 billion to N564.884 billion recorded in July was caused by security challenges experienced by the Nigerian National Petroleum Corporation (NNPC) in crude oil production.

    Otunla noted “the drop in oil production was due to a number of factors among which are the security challenges faced by the NNPC, force majure declared at Bonny Terminal and shutdown of Balema Gas Plant and Trans Niger pipeline as well as decreased in Production Sharing Contract and Modified Carry Arrangement.”

    The drop in oil revenue compelled FAAC to augment the allocation for the month of August by N143 billion.

  • Fed Govt rules out new capital projects in 2013 budget

    Fed Govt rules out new capital projects in 2013 budget

    The federal government may not embark on new capital projects next year, Information Minister Labaran Maku, has said.

    The minister who dropped the hint in Abuja during the inspection of government projects in the Federal Capital Territory (FCT) under the National Good Governance Tour said government has decided to concentrate on the completion of all critical and on-going projects in 2013.

    He said: “For 2013, hardly will any ministry initiate new projects. We want to complete existing and on-going projects.”

    “What we are doing is concentrating efforts on on-going projects. In the past, when new administrations came on board they would abandon on-going projects and start new ones.

    “But this administration is committed to continuity. We want to complete critical, abandoned and on-going projects.”

    “In less than half way of this tenure, we have started to see transformation projects in the country.”

    He cited the abandoned N18 billion Lower Usuma Dam project in the FCT which he said is now being revived by the administration.

    The FCT Minister, Senator Bala Mohammed, said the dam would pump 20 million cubic meters of water per hour to the city when the project is completed by December.

  • ‘Assembly resolution on N5000 note not binding on Fed Govt’

    ‘Assembly resolution on N5000 note not binding on Fed Govt’

    The government is not bound by Tuesday’s resolution of the Senate and the House of Representatives asking Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi not to print the proposed N5000 banknote. Minister of Information Labaran Maku has said.

    The Minister spoke on Tuesday night at the national secretariat of the Nigerian Union of Journalists (NUJ). He was a guest at a an interactive programme, the People’s Forum.

    Maku dismissed the debate and controversy over the proposed bank note as unnecessary, saying that the powers vested in the CBN by law on monetary policies remained sacrosanct.

    “I believe we should allow the CBN to take leadership initiative on this issue. This is not an opinion poll debate but a technical matter and the heated debate will not help in the management of our economy,” the minister maintained.

    He added that while the Federal Government had not foreclosed dialogue with the federal lawmakers on the policy, the erroneous impression should not be created that the resolution by the parliament is in any way binding on the Federal Government.

    He said: “The National Assembly has oversight functions and the Executive takes resolutions of the National Assembly seriously. But resolutions are not Acts of Parliament.

    “We can discuss, debate resolutions, take them seriously and factor them but they are not Acts of the National Assembly.”

    The minister also restated the position of the Federal Government on the issue of Bakassi Peninsula, which was ceded to Cameroun by the International Court of Justice (ICJ), saying that that the case is closed.

    According to him, the Federal Government does not have any fresh facts or a new position on the ICJ ruling on Bakassi and called on the public to be more diplomatic in making demands on the Bakassi. He urged agitators to be mindful of the need for good neighbourliness between Nigeria and Cameroun.

    “Nigeria does not have a new position. Nigeria’s position is in conformity with the judgment of the International Court of Justice,” Maku said.