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Tag: Finance Minister

  • We are not buying petrol for just Nigeria – Finance Minister

    We are not buying petrol for just Nigeria – Finance Minister

    Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that Nigeria does not import fuel for itself alone.

    According to him, the country spends $600 million monthly on fuel imports.

    He said this during an interview on AIT’s ‘Moneyline with Nancy’, which was shared on the station’s YouTube channel on Wednesday, Edun clarified that the absence of accurate statistics on the nation’s domestic fuel use was the reason President Bola Tinubu decided to end the fuel subsidy.

    He said: “The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 percent was only getting four percent of the value, and basically, they were not benefitting at all. So it was going to be just a few.

    “Another important point is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600m to import fuel every month but the issue here is that all the neighbouring countries are benefitting.

    Read Also: Finance minister indicates interest in reviewing sugary drinks policy

    “So we are buying not for just for Nigeria, we are buying for countries to the east, almost as far as Central Africa. We are buying for countries to the North and we are buying for countries to the West. And so we have to ask ourselves as Nigerians, how long do we want to do that for and that is the key issue regarding the issue of petroleum pricing.”

    The finance minister went on to say that the N570 billion funds distribution to state governments took effect in December 2023.

    “This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol but the point is that the states have received more money. They have received more money. Mr President has charged to ensure food production in the states,” he said.

  • FG ends borrowing – Finance Minister

    FG ends borrowing – Finance Minister

    The Federal Government (FG) says it has no intention to borrow from any local or foreign organisation with its removal of subsidy on petrol and exchange rate harmonisation.

    The Minister of Finance and Coordinating Minister for the Economy, Chief Wale Edun, revealed this at the end of the inaugural Federal Executive Council meeting on Monday in Abuja.

    He said that the benefit of the subsidy removal would be ploughed back into various sectors aimed at boosting government revenue and improving business environment for local and foreign investment.

    Edun said that with the increased revenue from subsidy removal, various palliatives have been made available to cushion its effect on a short, medium and long term basis.

    He reiterated the President Bola Tinubu-led administration’s desire to bring back the economy from the wood it has found itself over time.

    Similarly, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, said investment offers were already coming up in different sectors of the economy, including oil and gas, health, solid minerals and agriculture.

    She said that her ministry would collaborate with relevant Ministries, Departments and Agencies of government to achieve the president’s commitment to creation of jobs for the teeming youthful population of Nigeria.

    On his part, the Minister of Health, Dr Ali Pate, said that critical sections of the health value chain would be exploited to improve the economy and create jobs for Nigerians.

    Read Also: FG grants ex-EFCC boss Bawa access to lawyers, family members

    He said that the president had directed them to be courageous and innovative in taking decisions that would benefit the country, adding that the president has already taken such moves.

    Pate said that the president was responsive to the need to set the economy on the path of progress with his move to remove subsidy on petrol from the first day on his inauguration.

    The Minister of Information and National Orientation, Alhaji Mohammed Idris, said that the president charged the cabinet members to be transparent in their dealings, especially in disseminating necessary information.

    He urged the media to avail themselves of the opportunity of verifying and fact checking their stories in order not to misinform the public.

    (NAN)

  • Why Govt can’t remove fuel subsidy now, by Finance minister

    The Federal Government has explained why it is not considering subsidy removal. It has not found the right formula to cushion its effect, Finance Minister Mrs. Zainab Ahmed said yesterday.

    According to her, the government would have to find a workable formula before ending subsidy payment.

    “But for now”, Ahmed said, “the government is yet to find the right formula which would provide succour to the people when subsidy is removed. Hence, there is no intention to remove fuel subsidy at this time.”

    The minister, who spoke yesterday at the end of the weekly Federal Executive Council (FEC) meeting, that the Executive and the National Assembly would have to work together on the issue.

    She also noted that the current subsidy regime, which is under the monopoly of Nigeria National Petroleum Corporation (NNPC), is cheaper  compared to the previous regime.

    Mrs. Ahmed said: “In some countries, they provide buses to transport people, in some countries they provide subsidies for people that are directly requiring the subsidies.

    Read also: NUPENG, PENGASSAN to FG: shun counsel on removal of fuel subsidy

    “We have not found a way to do it. What we are doing now, the subsidy, it is everybody that is benefiting, whereas it should be the people that are really vulnerable that need.

    “So, in the Executive with the support of the legislature, we have to find a formula that will work for Nigeria. And until we do that, we should not be contemplating removing the subsidy because, indeed when we do, there will be people that will suffer. So, we are not yet there.

    “We discussed this periodically under the Economic Management Team. But we still haven’t found a formula that works for Nigeria. And you know that Nigeria is unique. What works for Ghana might not work here.

    “So, it’s still work in progress and there is no intention to remove fuel subsidy at this time.”

  • Finance Minister okays IMF advice on subsidy removal

    Finance Minister, Mrs. Zainab Ahmed, on Thursday, described the International Monetary Fund’s (IMF’s) advice to the Federal Government on the need to remove fuel subsidy as a good advice.

    Speaking at the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington D.C, she said: ” The advice from the IMF on fuel subsidy removal was good one but also we have to implement it in a manner that is both successful and sustainable.

    “We are not in a situation to wake up one day and just remove subsidy. We have to educate the people, we have to show Nigerians what the replacement for those subsidies will be. So,  we have a lot of work to do. We also need to understand that you don’t remove large amounts of subsidy in one go, it has to be graduated and the public has to be well-informed on what you are trying to do”.

    The minister said the minister met with the IMF and have reviewed the IMF Article IV Consultation with Nigeria report, which was positive. “The review was a positive one and had good advice from the IMF to Nigeria and they have indicated that they are available to provide technical support to improve our liquidity management, our debt management and other fiscal measures,” she said.

    Data from the Debt Management Office (DMO) showed that Nigeria’s total public debt rose to N24.39 trillion or $79.44 billion as at December 31, 2018 representing a year-on-year growth of 12.25 per cent. The 2018 debt stock is higher than that of 2017 by N2.662 billion.

    Mrs. Ahmed said President Muhammadu Buhari has directed that the minister looks at every area that requires reforms.

    Read also: IMF advises Nigeria to remove fuel subsidies

    Speaking on the Sovereign Wealth Fund (SWF) operations, she said:  “I would say that the Sovereign Wealth Authority has been doing well if you look at where we are starting from, we have achieved quite a lot of progress by building more of the fund from where we met it and by utilising the savings at the Sovereign Wealth Authority for projects that are physically visible. We still have some movements to go but the movement is a positive one”.

    The minister said the Federal government has asked the World Bank to review some of the initiatives that it has put in place, including those that involve them looking at implementation systems on areas they are providing funding for infrastructure.

    “What we found in Nigeria is that the Environmental and Social Standards (ESS) put in place by the World Bank is causing significant delays in the rollout of infrastructure. We understand that it is well intended but we have informed them that they need to review how they implement it so that we are not overtly slowed down because of the new proceedings,” she said.

  • No cause for alarm over FG’s borrowing plan, says Finance Minister

    Finance Minister  Zainab Shamsuna Ahmed  has assured Nigerians that there is no cause for alarm over the Federal Government’s borrowing, saying it still remains within the fiscal limits.

    Mrs. Ahmed, in a paper, ‘Revenue Growth and Economic Development: Expectations for 2019,’ delivered at the Deloitte Economic Outlook conference in Lagos on Thursday said government was already prioritizing revenue generation to sustain the growth trajectory. “The problem we have is that of revenue. By prioritizing revenue generation, the Federal Government intends to continue significant investments in human capital and critical infrastructure to sustain the growth trajectory,” she said.

    Continuing,the minister said: “Historical performance analysis shows that we are succeeding in growing our revenue. We have chosen to be strategic in our response and we recently launched the Strategic Revenue Growth Initiatives to achieve sustainability in revenue generation.

    “Our targeted revenue to GDP ratio is 15 per cent as set out in the Economic Recovery Growth Plan.

    Read also: Hong Kong customs seize record haul of contraband from Nigeria

    “We will continue investing in the ERGP implementation by leveraging finance for critical infrastructure and our social investment programmes. These investments, we believe, will guarantee a sustainable future.

    “In 2019 and in line with the Economic Recovery and Growth Plan (ERGP) 2017 – 2020, we will continue to invest resources in achieving our fiscal priorities which are: enhancing revenue generation, collection and monitoring;  fiscal consolidation by optimising priority capital and recurrent expenditure; optimising management of both domestic and global fiscal risks; and increased coordination of fiscal, macroeconomic, monetary and trade policies”, she said.

  • ERGP has improved economy, says Finance Minister

    •Reserve now $41.85b, inflation drops to 11.3%

    The Finance Minister, Hajia Zainab Shamsuna Ahmed, has described as heart lifting the positive outcome of some of the measures being adopted by the nation’s economic managers under the President Muhammadu Buhari’s administration to retool the economy.

    Specifically, she cited the Economic and Growth Recovery Plan (ERGP) as one of the measures being used to revamp the economy and which has achieved some modest successes thus far.

    The Minister gave this hint at Chatham House in the United Kingdom, where she delivered a keynote address on ‘Reforming and Recovering Nigeria’s Economy from Debt to Development.’

    The Minister who led other government functionaries to the forum which ended over the weekend while giving an update on the state of the economy on her official twitter handle, @Zshamsuna  said, “Today, the Economic Recovery and Growth Plan (ERGP) is yielding results.  Our reserves have grown from $28.3billion in May 2015 to $41.85billion in November 2018.”

    While reiterating that the ERGP reforms would be achieved through setting priorities in one of five areas including: macroeconomic stability vis-a-vis economic diversity as well as enhancing Nigeria’s competitiveness through investing in infrastructure ultimately to improve business environment and promotion of digital led growth including social inclusion and job creation with focus on governance, security and adherence to the rule of law, the minister said the country has fared better under the President Buhari-led government on these scores.

    Expatiating, she said, “Our GDP is now back on the growth path. From -1.6% in 2016, our economy grew by 1.7% in the first half of 2018. Inflation has dropped from 18.7% in January 2017 to 11.3% in September 2018.

    “These and many other key economic indicators show that Nigeria is truly moving in the right direction. A clear indication that the ERGP is working,” she stressed.

     

  • Finance Minister Adeosun resigns

    The Minister of Finance, Mrs. Kemi Adeosun yesterday resigned her appointment over allegation of forged NYSC exemption certificate.

    An investigation panel set up by President Muhammadu Buhari found the certificate which the minister submitted for screening to be fake.

    Adeosun submitted her resignation letter yesterday evening and it was accepted by the President who also wished her well.

    In a statement signed by the Special Adviser to the President on Media, Femi Adesina, the President thanked the Minister for her services to the nation and wished her well in her future pursuits.

    He also approved that the Minister of State Budget and National Planning, Mrs Zainab Ahmed, should oversee the Ministry of Finance with effect from yesterday.

    In her letter, Adeosun, who explained the circumstances that led to her resignation, wrote: Dear Excellency, let me commence by thanking you profusely for the honour and privilege of serving under your inspirational leadership. It has been a truly rewarding experience to learn from you and to observe at close quarters your integrity and sense of duty.

    “I have, today, become privy to the findings of the investigation into the allegation made in an online medium that the Certificate of Exemption from National Youth Service Corps (NYSC) that I had presented was not genuine. This has come as a shock to me and I believe that in line with this administration’s focus on integrity, I must do the honourable thing and resign.

    “Your Excellency, kindly permit me to outline some of the background to this matter.

    “I was born and raised in the United Kingdom. Indeed, my parental family home remains in London. My visits to Nigeria up until the age of thirty-four (34) were holidays, with visas obtained in my UK passport.

    “I obtained my first Nigerian passport at the age of thirty-four (34) and when I relocated, there was debate as to whether NYSC Law applied to me.

    “Upon enquiry as to my status relating to NYSC, I was informed that due to my residency history and having exceeded the age of thirty (30), I was exempted from the requirement to serve. Until recent events, that remained my understanding.

    “On the basis of that advice and with the guidance and assistance of those I thought were trusted associates, NYSC were approached for documentary proof of status. I then received the certificate in question.

    “Having never worked in NYSC, visited the premises, being privy to nor familiar with their operations, I had no reason to suspect that the certificate was anything but genuine.

    “Indeed, I presented that certificate at the 2011 Ogun State House of Assembly and in 2015 for Directorate of State Services (DSS) Clearance as well as to the National Assembly for screening.

    “Be that as it may, as someone totally committed to a culture of probity and accountability, I have decided to resign with effect from Friday, 14th September, 2018.

    “Your Excellency, It has been an exceptional privilege to have served our nation under your leadership and to have played a role in steering our economy at a very challenging time.

    “I am proud that Nigeria has brought discipline into its finances, has identified and is pursuing a path to long term sustainable growth that will unlock the potential in this great economy.

    “Under your leadership, Nigeria was able to exit recession and has now started to lay the foundation for lasting growth and wealth creation.

    “Repositioning this huge economy is not a short term task and there are no short cuts. Indeed, there are tough decisions still to be made, but I have no doubt that your focus on infrastructural investment, revenue mobilisation and value for money in public expenditure will deliver growth, wealth and opportunity for all Nigerians. “I thank His Excellency, the Vice President and my  colleagues in the Federal Executive Council for the huge pleasure and honour of working with them.

    “I also thank, most specially, the team in the ‘Finance Family’ of advisers and heads of agencies under the Ministry of Finance.

    “Your Excellency, this group of committed Nigerians represent a range of backgrounds, ethnicities and ages. They have worked well above and beyond the call of duty to support me in the tasks assigned.

    “The diversity in my team and their ability to work cohesively to deliver reforms convinces me that Nigeria has the human capital required to succeed.

    “Your Excellency, let me conclude by commending your patience and support during the long search for the truth in this matter.

    “I thank you again for giving me the honour of serving under your leadership. It is a rare privilege which I do not take for granted.

    “As a Nigerian and committed progressive,  I appreciate you for your dogged commitment to improving this nation.

    “Please be assured, as always, of my highest regards and best wishes.”

  • Finance minister stops NHIS from investing N25b

    Finance Minister Kemi Adeosun has stopped the National Health Insurance Scheme (NHIS) from investing about N25billion.

    Based on what he inherited from his predecessor, Acting Executive Secretary Attahiru Ibrahim, the  Executive Secretary/ Chief Executive Officer of the NHIS Prof. Usman Yusuf, has proposed an investment of N25billion to N30billion from the scheme’s funds.

    Yusuf presented the investment plan to the NHIS Governing Council, which is yet to be convinced.

    But with over N138billion NHIS cash trapped in 17 banks and financial companies as well as in individuals’ pockets from January 2011 to date, the Federal Government is not disposed to such an investment.

    The minister also said investing the cash will amount to a violation of the Treasury Single Account (TSA) policy.

    There have been issues between the Governing Council and the NHIS boss on the planned investments.

    The NHIS boss presented an approval given to his predecessor to invest the cash but the boss was in possession of a follow-up memo from the minister stopping the investment.

    A source said: “Both the Governing Council and the NHIS Executive Secretary are yet to agree on the investment of the funds.

    “The Council is insisting on compliance with the directives of the ministers of Finance and Health.

    “Our activities are almost being grounded. There is urgent need for intervention by the Federal Government to resolve the challenge at hand.

    “We also have about N138billion invested funds trapped. The crisis of confidence between the council and the NHIS must be urgently addressed. We got to this sorry state because the Minister of Health has been ignored by the NHIS management.”

    Although the investment was initially approved for the former Acting Executive Secretary, Attahiru Ibrahim, by the Minister of Health, Prof. Isaac Adewole, in line with Part IV, Section 11.4 of the National Health Insurance Act, it was reversed.

    Following advice from the Minister of Finance, the decision to stop the investment was communicated to the NHIS by the Minister of Health.

    In a memo, the Minister of Finance said the Central Bank of Nigeria (CBN) had been advised to pay Treasury Bill rates on any residual funds in the TSA with the apex bank.

    The letter drew the NHIS’s chief’s attention to the Health Minister’s correspondence dated 18th August 2017 in which you gave approval to invest in Federal Government Securities (copy attached)”

    “This approval is in direct violation of the Government’s Treasury Single Account (TSA) policy and therefore should not be implemented.

    “The Central Bank Nigeria (CBN) has been advised to pay Treasury Bill rates on any residual balance held in TSA with CBN for Investment Trusts.”

    In a follow-up letter to NHIS, the Minister of Health said: “This is to inform you that the Honorable Minster of Finance has advised against the proposal to invest NHIS residual funds in securities. The approval of such investment, she stated, will be an indirect violation of the Government’s Treasury Single Accounts (TSA) policy.

    “ In view of the above, the Central Bank of Nigeria (CBN) has been advised to pay Treasury Bill rates on any residual balance held in the TSA with CBN for Investment Trusts.

    “You are therefore directed to stop all actions and processes on the investment of NHlS residual funds in securities with immediate effect and approach CBN to facilitate the payment of interest on residual funds.”

    The NHIS Executive Secretary (ES) is banking on the initial approval given to the former Acting ES, Attahiru Ibrahim, by the Minister of Health.

    He is also relying on Section 11(3) of the NHIS Act to push for the investment of the funds.

    The initial approval  reads in part: “I refer you to the National Health Insurance Act (Part IV, Section 11.4 attached) reproduced below:

    “The Scheme shall invest any money not immediately required by it in Federal Government securities or in such other securities as the Council may, with the approval of the Minister, from time to time, determine.”

    It has come to my notice that the NHIS kept residual balance not immediately required for day-to-day operations idle in Treasury Single Account with the CBN. The sum has accumulated over the years and has become somewhat sterilised as you continue to hold it in cash thereby leading to erosion in value due to inflationary trends which currently stands at 16.1%.

    “Following from above and in order to arrest this value erosion of the NHIS funds, l hereby approve as follows:

    • Commence effective immediately; starting with the sum of N10 billion naira up to the tune of N50 billion naira investments in Federal Government Securities at prevailing market determined yields.
    • Engage the services of any of the regulatory bodies certified investment counter parties; Cowry Asset Management Limited, Finmal Securities Limited or Elixir Investment Partners Limited to advise on the investment options and seamlessly execute same.
    • The investment actions and the expected returns should be captured in your 2017 budget estimates

    “lt is my expectation that the returns on these investments will be used to fund part or all of the proposed interventions in the tertiary health institutions without depleting NHIS actual funds balance. I have taken the liberty to notify the Honourable Minister of Finance, Chairman Senate Committee on Health and Chairman House Committee on Health Services.

    Section 11(3) of the NHIS Act says: “The Scheme shall from time to time, apply the funds at its disposal

    (a) to the cost of the administration of the scheme;

    (1)) to the payment fees, allowances and benefits of members of the Council;

    (c) to the payment of salaries, allowances and benefits of officers and employees of the Scheme;

    (d) for the maintenance of any property vested in the Scheme or under its administration; and

    (e) for and in connection with the objectives of the Scheme under this Act

    “The Scheme shall invest any money not immediately required by it in Federal Government securities or in such other securities as the Council may, with the approval of the Minister from time to time, determine.”

  • Abacha loot: Foundation sends FoI request to Finance minister

    Cable Newspaper Journalism Foundation (CNJF), a not-for-profit media organisation, has sent a Freedom of Information (FoI) request to Finance Minister Kemi Adeosun on the payment to lawyers in the recovery of $321 million Abacha loot from Luxembourg.

    Attorney-General of the Federation and Minister of Justice Abubakar Malami had engaged two Nigerian lawyers, Oladipo Okpeseyi and Temitope Isaac Adebayo, for the recovery after the money was returned to Nigeria with $1.5 million interest by the Swiss government.

    However, TheCable online newspaper, a partner organisation to Cable Foundation, reported that Enrico Monfrini, a Swiss lawyer, had done the legal work and completed recoveries for which he was paid in full by the Goodluck Jonathan administration in 2014.

    Monfrini denied allegations that he was asking for extra payment to complete the job, maintaining that the recovery had been finalised and all that was left was for Malami to write a letter to the Swiss government. However, Malami still engaged the services of two lawyers for a fee of $16.9 million (about N7 billion).

    CNJF had sent a FoI to Malami to make available copies of the agreements signed with Monfrini, but the attorney-general did not respond to the request. Cable Foundation’s lawyers, Kusamotu & Kusamotu, are now in court seeking an order of mandamus to compel the AGF to make the documents available in line with public interest.

    In the FoI request to Adeosun, the Cable Foundation is seeking a breakdown of the amount approved and released for the Nigerian lawyers between the time they were appointed and today as well as records showing payment timeline for the services of the Swiss lawyer.

    This request is in line with sections 2(3) & (4) of the Freedom of Information Act, 2011, which require all “information relating to the receipt or expenditure of public or other funds of the institution” to be “widely disseminated and more readily available.”

    “We are trying to help President Muhammadu Buhari in his war against corruption,” Mrs. Abiose Adelaja Adams, the programme officer of CNJF, said in a statement yesterday.

    The House of Representatives has set up an ad-hoc committee to probe the payments to lawyers.

    TheCable also reported earlier in the year that the American government has told Buhari it would not entertain the involvement of private lawyers in the return of another $500 million Abacha loot, which was domiciled with the US Department of Justice in 2014 after the recoveries by the Jonathan administration.

    The US government would only deal with Nigeria on a government-to-government basis, TheCable reported.

     

     

     

     

  • Buhari orders probe of death of NYSC member

    …Condoles families of dead NYSC members

    President Muhammadu Buhari on Wednesday ordered independent investigation of the death of National Youth Service Corps (NYSC) member, Miss Ifedolapo Oladepo in Kano State.

    According to a statement by the Special Adviser on Media and Publicity, Femi Adesina, the President’s fresh probe is to unravel the true circumstances surrounding her death.

    The President also commiserated with the families of three NYSC members who lost their lives recently during the 2016 Batch ‘B’ Orientation Programme in three States of the Federation, including Ifedolapo.

    He described the demise of the young Nigerians as “shocking, sad and unfortunate,” noting that they died in the course of answering the national call to serve.

    He urged the families, friends and associates of the deceased to be consoled by the knowledge that their loved ones paid the supreme price while on national service and not for ignoble reasons.

    President Buhari also extended condolences to the Director-General and Management of the NYSC over the transition of the youth corps members, Chinyerum Nwenenda Elechi, Ifedolapo Oladepo and Monday Asuquo Ukeme, in Bayelsa, Kano and Zamfara States respectively.

    While enjoining the Management to do all within its powers to protect the lives of those under its charge, the President called on parents and guardians of current and potential NYSC participants not to panic over the recent tragic deaths.

    He prayed that God will grant the souls of the depa