The Nation Newspaper

Tag: Fed Govt

  • Fed Govt explains Paris Club refund

    Federal Ministry of Finance has made clarification on the Paris Club refund approved for the 36 states.

    The Director (Information), Mr. Hassan Dodo, said in a statement in Abuja yesterday: “It will be recalled that the issue of Paris Club loan over-deduction has been a long standing dispute between the Federal Government and the state governments, which dates back to 1995 to 2002. “In response to the dispute, President Muhammadu Buhari directed that the claims of over-deduction be formally and individually reconciled by the Debt Management Office (DMO). This reconciliation began in November 2016.

    “As an interim measure to alleviate the financial challenges of the states during the 2016 recession, the President approved that 50 per cent of the amount claimed by states be paid, to enable the states clear salary and pension arrears. This was released between December 1, 2016 and September 29, 2017. This refund was part of the government’s fiscal stimulus to ensure the financial health of sub-national governments.

    “The DMO led the reconciliation process under the supervision of the Federal Ministry of Finance. The final approval of US$2.689 billion is subject to the following conditions:

    Salary and workers related arrears must be paid as a priority. Commitment to the beginning of the repayment of Budget Support Loans granted in 2016, to be made by all states. Clearing of amounts due to the presidential fertiliser initiative. Commitment to clear matching grants from the Universal Basic Education Commission (UBEC) where some states have available funds, which could be used to improve primary education and learning outcomes. Payment of the approved amount is to be made in phased tranches to the states.”

  • Fed govt secures US$500million loan from China for modular refineries

    The federal government has secured a US$500m facility from the Export Import Bank of China (CEXIM) through the Bank of Industry (BOI). It is for the establishment of modular refineries and Flare Gas Recovery Programme in the country.

    The establishment of modular refineries is part of the federal government’s plan to end importation of petroleum products and to discourage illegal oil bunkering activities in the Niger Delta region.

    A total of 38 operating licenses have already been granted by the federal government to establish modular refineries in the Niger Delta.

    The BoI said yesterday that “as part of the MoU between BoI and CEXIM, the facility will be utilized to finance the purchase of equipment and machinery from China by investors and project owners of modular refineries in Nigeria.

    “The aim is to ensure availability of refined petroleum products within the country, monetise gas flare, reduce cost of products in the mid-term and provide employment for Nigerians.

    “To date, 10 modular refineries are at advanced stages of development in the Niger Delta; this facility will ensure that more modular refineries are constructed.”

    The facility could be accessed via letters of credit issued for the delivery of specified modular refineries and gas processing equipment to qualified Nigerian companies establishing petrochemical facilities under the Modular Refineries and Gas Flare Recovery Programme.

     

  • Fed Govt to boost food production

    Minister of Agriculture and Rural Development  Audu Ogbeh has said the government is taking steps to ensure food security for Nigerians.

    Speaking during the yearly lecture of the Catholic Brothers League in Lagos, Ogbeh explained that guaranteeing food security was a top priority issue for the government.

    He said the government was working to improve quality and competitiveness of the farm produce, and promoting value chain development.

    He said, however, the government had recorded great strides in boosting agricultural development in terms of production value and exports.

    Ogeh said plant varieties and cultivation techniques have been improved to enhance the quality of crops, while   productivity and quality of major products, including rice, have increased.

    Ogbeh lamented that Nigeria spent $6 million  daily on rice import.

    Following this, he said the Customs closed the land borders  to encourage Nigerians to eat local rice.

    The strategy, he observed, is yielding results.

    He said the Central Bank of Nigeria (CBN) has boosted rice production in Nigeria through its ’s Anchor Borrowers Programme (ABP), adding that the efforts made in local production of rice has saved the country about $800 million in foreign exchange.

     

     

  • Fed Govt, states advised on best practices on recruitment

    Both the Federal and state governments have been advised to observe professional personnel best practices when recruiting staff into the civil service.

    Permanent Secretary, Local Government Service Commission in Ekiti State, Babatunde Akilo, gave the advice at the monthly meeting of the state’s branch of the Chattered Institute of Personnel Management (CIPM) in Ado-Ekiti.

    Akilo spoke at a lecture titled, “The nexus between national development and personnel management.”

    According to him, most recruitments in some government establishments do not follow for best practices.

    Such recruitments, he said, had become a clog in the wheel of national development.

    The permanent secretary said competence and performance should be considered first before federal character to reflect the various geopolitical zones or states.

    Akilo called for a review of the Federal Character policy to make competence a yardstick in appointments.

  • Fed Govt launches ‘Tradermoni’ empowerment scheme

    Federal Government has launched TraderMoni, the collateral-free loan of N10,000 targeted at petty traders and artisans.

    The scheme, which held on Tuesday in Iwo, Osun State, is part of the National Social Investment Programme of the Federal Government.

    TraderMoni, in collaboration with Bank of Industry (BoI), is targeted at craftsmen, women and petty traders.

    The scheme reinforces the Federal Government’s commitment to bridge the credit gap and empower Nigerians at the grassroots.

    Till date, over five million people are benefiting daily from the programmes under GEEP.

    “The policy of the federal government is to support businesses, not just big business but particularly small, medium-sized businesses and micro businesses. We recognize the hard work of traders who wake up every day and toil, in the markets, in their trades with a dream to become financially independent and secure a future for themselves and their children,” said Vice President Yemi Osinbajo (SAN) at the launch.

    Osinbajo described the loan as progressive, adding that it will help traders expand their businesses

    “We will give them more as they begin to repay the N10,000. If they pay up, they will be given N15,000. And if that is repaid, they would be given N20,000. Then it goes up to N50, 000 and N100, 000,” he said.

    According to him, beneficiaries have six months to repay with flexible options of N85 daily or N430 weekly.

    Osinbajo noted that this is the first time the country has implemented such an economic-enhancement initiative, adding that this constitutes part of the administration’s welfare agenda.

    ”We want to empower the masses especially those who are not lazy; we have to empower them with loans to continue with their trades,” Osinbajo added.

    Without having to leave their ware, traders are enumerated at their place of business.

    Ater verification by BoI, they receive a cash notification or credit alert in their mobile wallet account.

    The cash can either be transferred to their account or cashed at any mobile money agent.

    Unlike traditional loans, no collateral or documentation are needed for TraderMoni.

    Osinbajo explained that the scheme would not only uplift Nigerians but also discourage corruption. “This programme is part of Social Empowerment Programme by President  (Muhammadu) Buhari to discourage corruption in this nation and serve as a means to help petty traders in the country. We want the wealth of this nation to be shared to every Nigerian. The wealth of this nation belongs to every citizen and not to some set of people; not politicians but the common people of the country who should feel the impact of the government.”

    He admonished the beneficiaries to pay back the loan so others could equally enjoy same facility.

    Executive Director of BoI Mrs. Toyin Adeniji also spoke of the scheme. She said:  ”The Federal Government is on target to empower two million petty traders between now and the end of the year. A minimum of 30,000 loans per state and the Federal Capital Territory will be disbursed.”

    She added that TraderMoni would unlock massive potentials in the informal economy and support the President Muhammadu Buhari-led administration’s agenda on poverty alleviation, job creation, financial inclusion and prosperity of all Nigerians irrespective of their educational qualifications or background.

    Others in attendance includes:  Osun State Governor Rauf Aregbesola, his deputy Mrs. Titilayo Laoye-Tomori; Mrs Toyin Adeniji; Oluwo of Iwo, Oba Abdul-Rasheed Adewale Akanbi; the All Progressives Congress (APC) gubernatorial candidate, Alhaji Gboyega Oyetolaand and his running mate, Benedict Olugboyega Alabi, among others.

    Adepoju Gbemisola, a food seller in Iwo, promiseds to use the money judiciously and repay the loan as advised. Another beneficiary Aremu Jamiu, a bricklayer in Iwo, expressed his surprise in the timely intervention of the government.

    “We thank the Federal Government for approving the loan even in these difficult times. We really want to appreciate them for their efforts. I pray that God will continue to help them,” he said.

     

     

  • Fed Govt to fix infrastructure deficit

    The Federal Government has reiterated its commitment towards providing critical infrastructure across the country, despite inadequate resources and low budgetary provision.

    The Minister of State for Power, Works and Housing II, Surveyor Suleiman Hassan Zarma, who spoke yesterday when he received a delegation and council members of Abubakar Tafawa Balewa University (ATBU), Bauchi, in his office in Abuja, said budget was usually inadequate in all Ministry, Department and Agency (MDAs). He noted that efforts were on by the President Muhammadu Buhari administration to fulfil promises on the deficit.

    The Vice Chancellor, Prof. Abdulrahman Ibrahim, hailed the ministry for its achievements in the housing, power and road sectors since the inception of the administration.

    Speaking on behalf of the delegate, Prof. Ibrahim praised the ministry for including ATBU among the nine pilot universities to benefit from the rural electrification project.

    He said the visit was to solicit support of the ministry towards providing road network projects in the main campus and upgrading its present 0.5 megawatt to 3.5 megawatt electricity, to enhance proper and effective utilisation.

    The vice chancellor lamented that the present budgetary provision of the university was inadequate for “these huge projects, hence we crave the support and intervention of the ministry towards the realisation of these projects.”

    Members of the delegation include Chancellor and Chairman of Council, Mrs. Nimota Akanbi, Prof. Ibrahim and other Council members.

    The minister promised to render support on the issues presented.

  • Fed Govt to demolish houses under power lines

    The Nigeria Electricity Management Service Agency (NEMSA) said yesterday that the Federal Government would demolish structures under power lines.

    This followed the government policy, which prohibits the building of houses under power lines.

    The Managing Director, Peter Ewesor, who addressed reporters after declaring open the induction and capacity building for 70 NEMSA engineers undergoing training at the National Power Training Institute of Nigeria (NAPTIN) in Abuja, said owing to the implementation of the policy, the 11 electricity distribution companies (DisCos) and Transmission Company of Nigeria (TCN) had begun the demolition of such structures across the country.

    He said state governments had inaugurated committees to remove the buildings.

    Ewesor, an engineer, who is also the Chief Electrical Inspector of the Federation,  said the exercise was to discourage people from living under power lines.

    He said: “Recently, the Federal Government made a policy of ensuring that all the infrastructure and structures built within the right of way are removed.

    “As a first step, it is to ensure that all the infrastructure within the right of way, either within or under the power transmission lines, are first and foremost disconnected. We have followed up with the DisCos and Transmission Company of Nigeria to ensure that as a first step, these premises are disconnected to deter people from staying under power lines.

    “State governments are setting up committees to ensure that even beyond the disconnection of the premises from the power supply system, they are going to be removed. These committees are already working. They will ensure that these structures are removed from under power lines.”

    On meter, Ewesor said the agency had three meter test stations in Kaduna, Oshodi and Port Harcourt that were being remodelled to catch up with modern technology.

    He said in order to cope with the influx of meters that would flood the industry as a result of the Meter Asset Provider regulation of the Federal Government, “we are creating a meter testing station in Enugu, which is going to be completed by the end of this year. We expect that in the first quarter of next year, it will begin operation. We are equally starting the one in Kano to ensure we capture the meters coming into the country.”

  • Fed Govt, Volkswagen sign MoU on automotive hub

    The Federal Government has signed a Memorandum of Understanding (MoU), with  Volkswagen Group  to develop a joint vision for an automotive hub in Nigeria, the Minister of Industry, Trade and Investment Okechukwu Enalema, has said.

    A statement by the Strategy and Communication Adviser in the ministry, Bisi Daniels, said Volkswagen has undertaken undertake to implement a phased approach in relation to the assembly of vehicles, from assembly kit with the long term view of establishing Nigeria as an automotive hub in the  West African Coast.

    “This will include establishing a training academy in conjunction with the German Government, which will train the initial employees. The academy will also provide broader technical training in automotive skills. It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country subject to commercial viability, the statement said.

    It added: “In turn the Nigerian Government undertakes to finalise the approval of the Nigerian Automotive Policy, currently under consideration, including the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.

    It said the government has committed to providing a conducive legislative environment that will encourage the manufacturing of motor vehicles in Nigeria.

    Enalemah said the MoU is a major step in our walk towards the development of a robust automotive industry to achieve its potential contribution to the continuous economic development of the country.

    He said: “We believe in the strategic and catalytic role of the automotive industry in the diversification of the Nigerian economy and we remain committed to encouraging and partnering with relevant stakeholders, especially investors and friends of Nigeria.

    “We will meet our commitments and look forward to welcoming other Original Equipment Manufacturers (OEMs) interested in working with us to increase local production, local procurement, and exports.”

    Also, the Director-General of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, said, as Africa’s largest economy and most populous country, Nigeria offers not only a significant domestic market, but also the opportunity of a gateway to the West African market. We are pleased by the progress we have made in our engagement with Volkswagen, and excited to be partnering with a strong stakeholder with a full understanding of the huge potential Nigeria represents.”

  • Fed Govt fast-tracking ERGP implementation

    Minister of Budget and National Planning, Udoma Udo Udoma, has reiterated the Federal Government’s commitment to the implementation of the various strategies set out in the Economic Recovery and Growth Plan (ERGP).

    This, he said, would help to address its five execution priorities of Macroeconomic Stabilization, Agriculture and Food Security, Transportation, Energy and Industrialisation.

    Udoma who was addressing the Joint Planning Board/National Council on Development Planning (JPB/NCDP) meetings in Abeokuta, Ogun State, said with the faithful implementation of the Plan government will be able to deliver a resilient and more prosperous economy where ‘we grow what we eat and consume what we make’.

    He noted that though the Plan was hailed within and outside the country as well designed to address the fundamental economic challenges of the country, there were some concerns expressed about implementation, given our past failures as a country to effectively implement previous plans. He assured that the Buhari Administration is determined to properly implement the Plan. Already Government is encouraged by the achievements recorded so far in the implementation of the ERGP.

    Explaining that the ERGP was conceived as a comprehensive medium term plan to address the fundamental problems of the country and place the economy on the path of diversified, sustainable and inclusive growth, he stated that many innovations are being introduced to achieve faster results.

    Pointing specifically to the success recorded through the ERGP Focus Labs, held early this year, in driving the objectives of the Plan in some key sectors of the economy, the Minister said more of such innovations will help to fast-track implementation of the Plan. He was hopeful that the JPB/NCDP meetings will generate new ideas that will help the Plan implementation.

    The annual JPB/NCDP meetings is a platform for State Commissioners, Permanent Secretaries, and other relevant stakeholders to discuss with each other about the Nigerian economy and keep abreast of developments by hearing from development experts on topical economic issues. The theme for this year’s meeting is “Accelerating implementation of the Economic Recovery and Growth Plan: the role of stakeholders.”

    He explained that the theme was chosen to focus attention on what can be done to accelerate the momentum of the current economic revival as there is a need to quicken the growth of the economy. He reminded the participants that the ERGP was a live and dynamic plan.

    He was therefore optimistic that contributions at this year’s meetings will be useful for the mid-term review of the ERGP which the Ministry is currently undertaking.

    The minister said that he found it encouraging that the implementation of the ERGP was already yielding positive results. “Not only is Nigeria out of recession, the country is beginning to grow again particularly in the non-oil sector. The latest NBS numbers revealed that the Non-Oil sector grew by 2.05 per cent in second quarter of 2018. Other economic indices are also improving. Inflation rate has shown consistent decline since December 2016, declining from 18.55 per cent at that time to 11.14 per cent in July 2018.”

    He also pointed to the fact that the external reserves have nearly doubled since September 2016, from $23.81 billion to $46.37 billion by mid-August, 2018; Exchange rate gap has narrowed and confidence in the economy is returning; Capital inflows have risen from $710 million in the first quarter of 2016 to $5.5 billion by the second quarter of this year and Nigeria’s stock market ended 2017 as one of the best performing in the world.

    While also mentioning that between 2016 and 2017, our exports have grown by 59.5 per cent, from N8, 527 billion in 2016 to N13, 598 billion in 2017, he added that trade balance has grown from a deficit of N290.1 billion in 2016 to peak at a surplus of N4, 035.5 billion in 2017.

    These, he said, are as a result of what government has been doing in the past three years, which among others included ensuring alignment between the Medium Term Fiscal Frameworks (MTFF), the annual budgets and the ERGP; and the adoption of the Zero-based budgeting system which has helped in scrutinising public expenditure estimates at the micro levels to ensure effective deployment of our limited resources to areas and sectors with the greatest development impact.

    Others include substantial investments in power and transport infrastructure, capital provisions in agriculture, introduction of the Social Intervention Programme (SIP), measures to improve health and educational infrastructure, introduction of measures to increase revenues as well as commitment to improve the business environment which resulted in an improved ranking in the World Bank ease of doing business index, from 169 in 2016 to 145 in 2017.

    Acknowledging however that there is still more work to be done, the Minister told representatives of State Governments and other development partners at the gathering that there is an urgent need to intensify work on the implementation of the Plan to achieve the Nigeria of our dream.

    The Minister noted that since the adoption of the ERGP, the JPB/NCDP has been utilised to examine ways of facilitating the delivery of its objectives and urged further commitment from all stakeholders so that we can work together to ensure that the Plan achieves its set goals and targets.

     

  • Fed Govt, states debts hit $22b

    •DMO lists who owes what

    The Debt Management Office (DMO), yesterday put Nigeria’s external debt stock at $22billion. Out of the amount, the Federal Government’s quotient is $17.8 billion, while the combined debt portfolio by the states and the Federal Capital Territory (FCT) stands at $4.28 billion.

    Of the combined states’ figure, Lagos State, the commercial nerve-centre of Nigeria, has the highest foreign portfolio of $1.45 billion, or 33.88 per cent of the states’ debts.

    The debt status from the DMO, the News Agency of Nigeria said, were as a June 30, 2018. Going by the data, the Federal Government accounts for 81 per cent of the country’s external debt, while the states and the FCT account for 19 per cent.

    Following Lagos in that sequence is Edo State which stands at a distant second with external debt of $279 million.

    Others are Kaduna, $232.9 million; Cross River, $193.7 million; Bauchi, $134.9 million and Enugu, $127.9 million.

    The DMO listed other debtor states as Anambra which is owing $107.4 million; Oyo, $106.34 million; Ogun, $105.3 million; Osun, $101.5 million and Abia, $100.2 million.

    Others are Ekiti with a debt overhang of $97.9 million; Ondo $81.4 million; Rivers, $79.5 million; Ebonyi, $67.9 million; Kano, $65 million; Katsina, $64.7 million and Delta, $63.8 million.

    The DMO said Imo incurred a debt of $61.2 million; Nassarawa, $61.4 million; Adamawa, $57.8 million; Niger, $55.7 million; and Bayelsa $57.2 million. Also in the foreign debt conundrum are Akwa Ibom with $48.3 million; Kebbi, $46.7 million; Kwara, $49.8 million and Sokoto $40.2 million.

    At the tail end of the debt profile are Taraba, with $22.1 million; Borno, $22.2 million; Yobe, with $28.4 million and Plateau with $29.6 million.

    Others are Kogi, with 32.37 million dollars; Jigawa, 32.80 million dollars; FCT, 32.83 million dollars; Zamfara, 34.2 million dollars; Benue, 34.7 million dollars and Gombe, 38.5 million dollars.

    The Director-General of DMO, Ms. Patience Oniha,  said as at June 30, the nation’s public debt stock increased marginally by 3.01 per cent from that of December, 2017.

    “One of the beneficial outcomes is the rebalancing of the debt stock, the ratio of domestic debt to external debt inching towards the target of 60:40 and the target of 75:25 between long term domestic debt and short term domestic debt.

    According to the figures for June 30 released by the DMO, the ratio between domestic and external debt stood at 70 to 30 compared to 73 to 27 in December, 2017.

    Ms.Oniha said the ratio of 60 to 40 was important to ensure that the nation was not 100 per cent indebted externally, and that it was also easier to raise money domestically.

    She said the Federal Government has been borrowing from the external debt market to refinance maturing local debts because of the lower interest rates obtainable from foreign sources