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Tag: Fed Govt

  • Fed Govt submits revised MTEF to Senate

    Fed Govt submits revised MTEF to Senate

    The Federal Government yesterday submitted a revised version of the 2018 to 2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the Senate for consideration and approval.

    One of the major revisions was the adjustment of the Gross Domestic Product (GDP) growth rate from 4.5per cent to 3.5per cent.

    Minister of State for Budget and National Planning, Zainab Ahmed at an interactive session with the Senate Joint Committee on Finance, Appropriations and National Planning explained that other key parameters and assumptions like oil benchmark, daily oil production estimates and exchange rate were retained in the revised version.

    Ahmed allayed the fears that the adjustments would affect the N8.612 trillion 2018 budget proposal.

    She noted that the adjustments had already been reflected in the 2018 budget estimates submitted by President Muhammadu Buhari to a joint session of the National Assembly on November 7, 2017

    The minister listed some of the adjustments made to the 2018 to 2020 MTEF submitted by the Executive to the National Assembly in October to include: N710 billion to be generated from the restructuring of government’s equity in all the Joint Venture oil assets; N320 billion additional revenues from revision of terms to improve government take in the Production Sharing Contracts; additional N60 billion from Excise Duties on cigarettes and alcohol; N305 billion additional Company Income Taxes from the Voluntary Assets and Income Declaration Scheme (VAlDS); N100 billion from improvements by Federal Inland Revenue Service (FIRS) in the collection of Value Added Tax (VAT); N2.5 billion from special taxes on insurance of luxury cars, as well as surcharge on luxury goods and N250 billion provision as unspent balance carried forward from 2017.

    Ahmed said: “The key assumptions on the macro framework as defined in our MTEF and the only difference in the key assumptions is that we have adjusted the GDP growth from 4.5 per cent. And this is as a result of a meeting we had with you while discussing the last MTEF down to 3.5 per cent. But all the other assumptions at 2.3million barrels per day, oil price of $45 per barrel, exchange rate of N305/$1 are the same.

    “The fiscal deficit is now N2.05 trillion, down by over N940billion, also pushing the debt/GDP ratio downwards from 2.61 per cent to 1.77 per cent.”

    According to Ahmed, the adjustments were the fallout of the recommendations of a committee chaired by Finance Minister Kemi Adeosun, which identified additional revenue sources of about N1trillion to cut the 2018 budget deficit.

    She said: “When the FEC approved the MTEF/FSP, it constituted a Committee, chaired by the Minister of Finance, which was tasked with identifying additional sources of about N1 trillion revenues to cut the 2018 budget deficit and new borrowings. The outcome of the work of the Committee necessitated a revision of the MTFF, which also formed the basis of the 2018 budget proposal.

    “This briefing note and accompanying submissions relate to the revised MTEF/FSP and MTFF which are in alignment with the 2018 Executive Budget proposal, and were part of the documents that accompanied the 2018 Budget laid before NASS.”

    Some lawmakers who spoke at the session, insisted that the non-oil revenue were unrealistic.

    Specifically, they cited the Federal Government Independent Revenue projection of N807billion for 2017, where only N155.14billion (representing 74 per cent failure) was achieved as of September this year.

    Chairman, Senate Committee on Finance, John Enoh and a member of the joint committee, Abdullahi Danbaba Ibrahim wondered why the same projection was used in 2018.

    Enoh said: “Why don’t we have anything on interest rate as part of the MTEF document? That will be the best way to talk about aligning the monetary and the fiscal. Why are we putting more than N800 billion as independent revenue when the president admitted in his address to the National Assembly that it had suffered about 74 per cent variance. And yet in 2018, we are still putting more than N800 billion for independent revenue. Are we just balancing the figures? How do you expect to get the revenue if from the beginning even what you are projecting you know that you can’t make it?”

    A member of the committee, Adamu Aliero ( Kebbi central ) said: “I find it difficult to understand why the budget for 2017 should be truncated by 31st December when less than 20 per cent of the capital budget has been released. By withholding capital releases, you are more or less contracting the economy.”

    Senate President, Abubakar Bukola Saraki said the 2018 to 2020 MTEF and Fiscal Strategy Paper (FSP) will be approved this week.

    The debate on general principles of the N8.612 trillion 2018 Appropriation Bill, scheduled for today and Thursday this week, was shifted to Tuesday and Wednesday next week.

    MTEF/FSP provides the parameters upon which the budget is prepared.

    The Fiscal Responsibility Act, stated that the MTEF and FSP must be approved before the budget is considered.

    Saraki explained that the postponement of the budget debate is to enable the Senate to approve the MTEF/FSP before commencement of debate on the 2018 budget estimates.

  • Reps advise Fed Govt to stop further sale of PHCN assets

    Reps advise Fed Govt to stop further sale of PHCN assets

    THE House of Representatives has advised the Federal Government to stop further sale of some assets belonging to the Power Holding Company of Nigeria (PHCN).

    The lawmakers said the sale of PHCN’s overtime cargoes was fraudulent with opportunities denied qualified bidders that have no personal relationships with those in charge of the exercise.

    Consequently, Committees on Power and Public Procurement have been mandated to investigate the alleged fraudulent sale of the assets.

    The decision of the House followed the adoption of a motion of urgent national importance by Rita Oji (PDP, Lagos), who recalled that auctioning of PHCN overtime cargoes, scraps and obsolete items by the Nigeria Electricity Liability Management Company (NELMCO) worth over N20 billion was carried out and over N1.5 billion was claimed to have been realised from the sale.

    According to her, there were widespread claims of irregularities and improper advertisement on national dailies, including the Traders Journal.

    The motion was unanimously adopted after it was put to a voice vote by the presiding officer, Deputy Speaker Yussuff Lasun.

    The joint committee was given a month to carry out its workman’s report back for further legislative action and to monitor further sales of remaining overtime cargoes.

     

  • Fed Govt hails global backing for anti-graft fight

    The Federal Government has hailed the global endorsement of its fight against terrorism, as contained in the 2017 Global Terrorism Index of the Institute for Economics and Peace (IEP).

    In a statement issued in Abuja yesterday, the Minister of Information and Culture, Alhaji Lai Mohammed, expressed delight at the report, which showed that the largest decrease in terrorism deaths globally occurred in Nigeria.

    The statement signed by the minister’s Special Adviser (Media), Mr. Segun Adeyemi, said the report specifically showed that terrorism deaths attributed to Boko Haram fell by 80 per cent in 2016.

    The minister said it was also encouraging that for the second consecutive year, the total number of deaths was down with a 13 per cent Year-On-Year reduction.

    He said compared to 2015, with countries most affected by terrorism like Syria, Pakistan and Afghanistan, Nigeria recorded 33 per cent fewer deaths.

    Mohammed said the progress made by Nigeria in the fight against terrorism since President Muhammadu Buhari assumed office in 2015, was duly acknowledged by the Executive Chairman of IEP, Steve Killelea.

    He said Killelea was quoted by the report as saying: “The decline of Boko Haram in Nigeria is having a positive ripple effect, with Cameroon, Chad and Niger collectively recording 75 per cent fewer deaths.”

    Mohammed said Nigeria’s success in the fight against terrorism was a direct result of Buhari’s leadership.

    He said the President did not just provide the enabling environment for the Nigerian military to regain its lost glory in the fight against terrorism, but also rallied Nigeria’s neighbours to forge a wide and sub-regional front against Boko Haram.

    “It is fitting, therefore, that the 2017 Global Terrorism Index acknowledges the success recorded by the Multinational Joint Task Force that has be

    en exerting pressure on Boko Haram,” he said.

    The minister noted that the President, in his inaugural speech on May 29. 2015, directed the relocation of the command centre of the fight against Boko Haram to Maiduguri.

    He said the President followed up the directive with a shuttle diplomacy that took him to Cameroon, Chad and Niger, and resulted in the rejuvenation of the Multinational Joint Task Force.

    Mohammed congratulated the Nigerian military for its patriotism and sacrifice that had once again made the country a proud member of the comity of nations.

    He said the 2017 Global Terrorism Index would provide a fresh shot in the arm for the administration to continue its efforts to wipe out the vestige of Boko Haram and to tackle all other forms of insecurity facing the nation.

  • Fed Govt: we’ll sustain momentum of economic recovery

    The Federal Government has said it will not rest on its oars but sustain and maintained momentum of the various initiatives put in place for economic recovery.

    Senior Special Assistant on Media and Publicity, Office of the Vice President Mr. Laolu Akande stated this yesterday while addressing the Fourth Economic Communication Workshop for selected journalists at the Treasures Hotels and Suites, Abuja.

    The theme of the workshop was: “Budget, Presidential Executive Orders and Industrial Competitiveness as enablers of economic growth”.

    Although the country is not yet where government wants it to be, Akande said President Muhammadu Buhari and Vice President Yemi Osinbajo are determined to ensure full economic growth for the country.

    “A lot more is going to happen and the momentum is gathering for economic reforms. This leadership is committed to change and reform. We hope to wrap up and make impact on the people economically,” he stressed.

    He said there will be more diversification towards the non-oil sector of the economy next year and that government expects more revenue from this sector than from the oil sector.

    Akande noted that it was in recognition of what the government achieved through its various reforms that made the World Bank to rank Nigeria among the 10 most reforming countries of the world.

    Asked why government was requesting loans in spite of huge funds recovered from looters of the nation’s treasury, Akande said not much has been recovered to stop government from taking these concessionary loans that are meant for infrastructural growth.

    He, however, explained that there is a line in the yearly budget, like in 2017 and 2018 where government stated how much it is expecting to get from the recovered loot but that it is put back in the budget as income.

    He gave assurance that the whistleblower in respect of the Osborne, Ikoyi funds will be paid before the end of next week, notwithstanding it will be the largest pay-out to be made by the Federal Government.

    The vice president’s spokesman said government is going to improve on the ease of doing business in the country.

    He said this explains why Vice Osinbajo has been going round the country so that government agencies can see themselves as facilitators so that small-scale industries can do well in business.

    The Senior Special Adviser to the Vice President said the Home Grown Feeding Scheme of the government is now operating in 19 states and involving about four million school children, adding that the target is to attain five million school children by the end of the year.

    He said to date, no fewer than 267,000 small-scale enterprises (SMES) have been engaged while another 98,000 have been formalised by government.

    He said the uncertainties in the economy led to the collapse of the capital market in the past.

    “But the situation today is that Nigeria has become investors’ destination as efforts by government continue to attract investors. We would see inflow into capital market and this will increase employment,” he said.

    The Technical Adviser to the Vice President on Economic Matters, Mr. Fola Adejuwon, who remarked that inflation has been trending down within the last nine months, gave assurance that Nigerians would see the best side of the economy by January.

    Adejuwon, who admitted that it has been difficult for enterprises to flourish under the present interest rate regime, disclosed that all efforts are now geared towards reversing the trend, adding that the MPR, which is now 14 per cent, will be further reduced next year.

    He said the Federal government is also making efforts to reduce the risk of lending and defaults so that banks will be in position to reduce interest rates on loans.

    Adejuwon disclosed that Development Bank of Nigeria is coming upstream while Bank of Industries (BOI), Bank of Agriculture and others will be recapitalised in next fiscal year to enable them lend at single digit interest rate.

    Special Assistant on Micro, Small and Medium Scale Enterprises to the Vice President Mr. Tola Adekunle-Johnson said issue of the small scale industries are very close to the heart of Prof. Osinbajo.

    According to Adekunle-Johnson, the Vice President has taken their problems upon himself and has been going round the states and in partnership with state governments, finding solutions to them through SMEs clinics made up of agencies that have to do with giving approvals to SMEs.

    At such clinics, he said small scale entrepreneurs in just one day can approach any of these agencies and get solutions to problems which hitherto take months to resolve .

    He said efforts are also ongoing to enable SMEs secure loans at single digit interest rates from banks like BOI once they are able to provide guarantors.

  • Niger, Benin pay Fed Govt N19 billion for electricity

    Niger, Benin pay Fed Govt N19 billion for electricity

    The  Federal Government has received $64.63 million, about  (N19.7 billion) from Niger and Benin Republics as payment for electricity supplied to them, the Minister of Power Works and Housing, Raji Babatunde Fashola, said yesterday.

    He said, the Nigeria Electricity Bulk Trading Company (NBET) is expected to work out the modalities before onward distribution of the fund to the Electricity Distribution Companies (DisCos).

    He spoke at the 21st Monthly Power Sector Ministerial /Stakeholders meeting in Asaba, Delta State. It was hosted by Benin Electricity Distribution Company (BEDC).

    The minister had earlier commissioned the 215MVA Asaba sub-station transformer, which, he said, will reduce the incidence of load shedding in the area.

    But speaking in the meeting, Fashola said: “I have some good news for you as well. Some money has come in form the power we sell to Benin Republic and Niger Republic; people wonder why this is so. They are a product of treaties and agreements.

    “They also help our own economy.  So we have a total of $64,630,055 that has been recovered. So, NBET will work out the modality for distribution. And hopefully by next month, you too, should be able to report that you have received an alert.”

    The minister also announced that the Federal Executive Council had approved to resolve a meter contract dispute that it entered with a contractor since 2003, but the government’s approval last Thursday resulted in a court settle which implies that the contractor can now have N37billion plus the interest that accrued over the time for provision of meters to the DisCos.

    Fashola  urged interested DisCos to liaise with the ministry and contractor for supply of meters to their customers, adding that the deal is strictly between the contractor and the power firm while the ministry is only to make the facilitation with the meter supplier.

    He however urged the parties to note that the agreements will reach on meter supply will be subject to the regulation that the Nigerian Electricity Regulatory Commission (NERC) is about to present.

    He said: “But on a progressive note, I am also happy to report that the approval by the Federal Executive Council to resolve a meter contract dispute entered into since 2003, has now culminated in a court settlement that was concluded November 9.

  • APGA urges Fed Govt, others to follow due process

    APGA urges Fed Govt, others to follow due process

    The All Progressives Grand Alliance (APGA) yesterday advised the Independent National Electoral Commission (INEC), security agencies and other Federal Government establishments, whose officials and workers will participate in next Saturday’s governorship election in Anambra State, to be above board.

    The party urged them not to be partisan but ensure that the electoral guidelines, rules and regulations are adhered to.

    It advised the government and its agencies to provide a level-playing field for the 37 political parties participating in the November 18 election.

    APGA also urged them to ensure a credible poll in which every vote counts and for the electorate to be the deciders of who wins the election.

    A statement in Abuja by APGA’s National Director of Publicity, Ifeanacho Oguejiofor, said: “More so, APGA implores them not to give in to anti-democratic agents and negative reactionary forces moving about with their filthy lucre, seeking the connivance of willing hands to conspire against our fledging democratic ethos, produce fake electoral materials, engender seemingly crisis to compromise the voting process, manipulate the collation of results, undermine the emergency of the popular choice of the Anambra eople and invalidate the genuine outcome of the Election.

  • Fed Govt, Chinese firms sign $5.8b Mambilla 3050mw contract

    The Federal Government and three Chinese firms have signed the contract for the 3,050 megawatts (mw) Mambilla hydropower project valued at $5.792 billion (about N2.096 trillion) in Mambilla, Sarduana Local Government Area of Taraba State.

    Speaking at the signing in Abuja, Power, Works & Housing Minister Babatunde Raji Fashola said the “Federal Executive Council ( FEC) on August 30, 2017, approved the award of the turnkey EPC contract of the project to Messrs CGGC- SINOHYDRO-CGOC joint venture in the sum of $5.792,497,062.00”.

    “The draft contract agreement was later cleared for signing by the Attorney-General of the Federation and Minister of Justice.”

    The minister said at a bilateral parley between President Muhammadu Buhari and People’s Republic of China on government to government cooperation to execute the project got a clear reaffirmation of Chinese financing using Chinese contractors.

    Fashola noted that following a series of negotiation, the joint venture revised its offer three times before final offer price of $5,792,497,062.00 exclusive of taxes and duties with completion period of 72 months.

    According to him, the Bureau of Public Procurement (BPP) has reviewed the ministry’s request and granted a Due Process of No Objection in the sum of $5,792,497,062.00 in favour of JV that includes compensation, land acquisition and resettlement.

    Fashola said that the Federal Government will provide 85 per cent ($4,923,622,502.70) out of the contract price of $868,874,556.30 as counterpart fund.

    He said the scope of the works include: four large dams (Nya Sumsum, Nghu and Api Weir), two underground power house of 12 units of 250mw each, two numbers of 330KV of 700km transmission lines to Makurdi and Jalingo, 120 kilometres access roads connecting the project site and nearby communities and resettlement of 100,000 impacted persons.

    The minister noted that the preliminary feasibility study was carried out by Moto Columbus in 1972.

    He added that between 1981 and 1985, Diyam Consultants with Binnie and partners carried out another preliminary study, where recommendation of 3960MW capacity was recommended.

    Fashola said in April 2005, Messrs Lahmeyer International of Germany carried out detailed bankable feasibility study and the report of 2006 recommended rate peak capacity of 2,600MW with an estimate generation of 4,600GWh per annum after review of the previous studies.

    According to him, in April 2007, following selective tender, FEC awarded the Engineering, Procurement and Construction of the civil works/hydraulics component of the project to Messrs CGGC/CGC.

    But, the minister noted that a dispute prevented the execution of CGGC/CGC contract.

    Thereafter, in December 2011, FEC awarded the consultancy services to Messrs Coyne et Bellier Decrwon/WADSCO JV consultants to further review the two previous studies based on new hydrology, geology investigation and recommended 3,050MW, which consists of four dams namely: Nya Sumsum, Nghu and Api Weir with annual generation of 5,391GWh to be implemented for six years plus defective lability period.

    Fashola signed the contracts agreement on behalf of the Federal Government. The representatives of the Chinese firms, who signed for their organisations include: Yong Jun for China Gezhouba Corporation, Gan Yongskiv for Sinohydro Corporation Ltd and Ye Shijing for CGOC Group Ltd.

  • 2018 budget: NACCIMA advises Fed Govt on industrial devt

    2018 budget: NACCIMA advises Fed Govt on industrial devt

    For Nigeria to witness the desired economic turnaround next year, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has called for aggregate industrial development while implementing the 2018 budget.

    The association noted that with aggregate industrial development, the Federal Government will no longer give undue attention to the oil and gas industry at the expense of other key sectors like agro-allied industry.

    NACCIMA Director General Mr. Emmanuel Cobham said Nigeria should fast-track economic diversification by looking towards other key sectors like agriculture.

    Hear him: “We are where we are today in our Gross Domestic Product (GDP) level because we run almost a mono economy by being too much dependent on oil.

    “When you aggregate contributions from other sectors, you will discover that things will soon change fo the better.”

    Cobham spoke in Lagos, during the week at the graduation ceremony for third batch of Nigerian youths trained in Industrial Electronics at the on-going German Dual Vocational Training Partnership with Nigeria (G-DVTPW-N).

    He scored the Federal Government high in its effort to ensure early submission, passage and implementation of the 2018 budget.

    Cobham, however, called on all tiers of government and Nigerians to stand up against corruption and contribute their quota in moving the country’s economy forward in the coming year.

    The five-year-old German vocational traineeship has trained scores of Nigerian youths in Office Administration, Technical Facility Management, Industrial Electronics and Industrial Mechanics.

    Cobham described vocational training and skills acquisition as the best thing that could happen to any nation, adding that technical education is the bedrock of Nigeria’s future.

    In her welcome address, NACCIMA President, Chief Mrs. Alaba Lawson, said through the German DVT programmes, more youths have been equipped with theoretical and practical technical knowledge, including the required hands-on experience to be gainfully employed or start their own businesses.

  • Fed. Govt kicks as Moody’s lowers Nigeria’s sovereign rating

    Moody’s Investors Service, an international rating agency, yesterday downgraded Nigeria’s long-term issuer and senior unsecured debt rating to B2 from B1.

    It also lowered the senior unsecured MTN program rating and the provisional senior unsecured debt rating to (P)B2 from (P)B1. The rating outlook remains stable.

    In a report, Vice President – Senior Analyst, Moody’s Investors Service, Lucie Villa, said Nigerian authorities’ efforts to address the key structural weakness exposed by the oil price shock, by broadening the non-oil revenue base have so far proven largely unsuccessful.

    However, in a swift reaction, the Federal Ministry of Finance, Central Bank of Nigeria (CBN) and the Debt Management Office (DMO), said the challenges that were highlighted in the Moody’s rating are clear, and are being addressed by the government, with the environment having improved significantly since the last period of assessment.

    “While we respect the right of Moody’s to make this decision, we strongly disagree with the premise and must address some of the conclusions upon which the decision rests. Since Nigeria was last rated by Moody’s (as B1 stable) in December 2016, Nigeria has successfully emerged from a protracted recession and recorded important improvements across a broad range of indices”.

    The stable outlook reflects Moody’s view that the risk of a shock occurring that would further impair Nigeria’s economic and fiscal strength remains low, in part because of the recent improvement in the growth outlook and the measures taken to address foreign exchange shortages.

    According to the report, while debt levels remain contained and notwithstanding recent cyclical improvements, the government’s balance sheet remains structurally exposed to further economic or financial shocks, with interest payments very high relative to revenues and deficits elevated despite cuts in capital spending.

    It said the stable outlook reflects the fact that the likelihood of a shock occurring that would further impair Nigeria’s economic and fiscal strength remains low, with external vulnerabilities having receded supported by the rebound in oil production, the current account projected to remain in surplus, and reserves boosted through external borrowings and increased foreign capital inflows. Medium-term growth prospects are also credit supportive.

    Concurrently, Moody’s has lowered the long-term foreign-currency bond ceiling to B1 from Ba3 and the long-term foreign currency deposit ceiling to B3 from B2. The long-term local-currency bond and deposit ceilings remain unchanged at Ba1.

    The Federal government also listed a return to economic growth of 0.55 per cent in second quarter 2017, and returning business confidence, as evidenced by a Purchasing Managers’ Index index of 55.

    The government also cited a stable foreign exchange window for importers and exporters, with improving liquidity and convergence of the parallel and official rates and significantly improved foreign exchange reserves, now totaling $34 billion for disagreeing with Moody’s.

    “Increased oil production, combined with stable and now improving oil prices. A slowly improving revenue profile, with non-oil revenue (principally taxes) up 10 per cent. Month on month improvements in inflation levels since January 2017, with inflation continuing to trend downwards. Strong year on year improvement on the World Bank Ease of Doing Business Rankings from 169th to 145th place, a 24 place move in one year. In 2016, the highest capital expenditure deployment since 2013, making investments in critical infrastructure to support further growth,” the government said.

    Continuing, it said that at the heart of Moody’s rationale is the need for Nigeria to improve non-oil revenue aggressively. “This is absolutely and directly aligned to the government’s priorities. This is critical to our economic development and is the basis for the establishment of a stable and inclusive economy, which can withstand global shocks and has the resources to increase investments in our infrastructure. We have put in place a number of measures to improve our collection and FIRS has made good progress in increasing revenues, particularly when considering that the economy is still recovering from the oil price shock”.

  • Fed Govt, others share N9.9b solid minerals revenue

    Fed Govt, others share N9.9b solid minerals revenue

    Minister for Mines and Steel Development and Chairman, National Stakeholders’ Working Group (NSWG) of the Nigeria Extractive Industries Transparency Initiatives (NEITI), Kayode Fayemi, has said the N9.9billion revenue generated directly from solid minerals was shared among the three tiers of government in July, 2017.

    He said NEITI’s intervention through recommendations in solid minerals audit report, led to the sharing of monies from the sector by the three tiers of government and other beneficiaries in line with section 162 of the 1999 constitution on derivation.

    He stated this during the NEITI South West Zonal Outreach and Stakeholders’ engagement meeting in Abeokuta, Ogun State. The minster who was represented by a member of the NSWG of NEITI, LawanLantewa, also revealed the ministry had received the sum of N30billion from the Natural Resources Development Fund for exploration, research, geosciences data generation and improved mines field security.