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Tag: Medium Term Expenditure Framework (MTEF)

  • UNICEF expands social policy scope in Nigeria

    The United Nations Children Fund ( UNICEF ) says it is expanding its social policy scope in Nigeria to include public finance for better result.

    Mr Hamidou Poufon, the UNICEF Chief Social Policy Officer in Nigeria, disclosed this while speaking at a Workshop on Public Finance for Children in Abuja on Wednesday.

    The News Agency of Nigeria reports that the workshop is organized for staff of UNICEF Regional offices in Ghana, Liberia, Sierra Leone and Nigeria among others.

    Poufon said the organization was also decentralizing its operations for effective performance.

    “In the past four years, UNICEF Nigeria Social Policy work has largely focused on bringing Federal and State government attention to the growing momentum on social protection.

    “This is in line with globally recognized strategy for poverty reduction, equality and social inclusion.

    “This occurs alongside similar efforts to bridge the evidence and knowledge gaps on child poverty and disparities.

    “With considerable advancement in the area of social protection, Nigeria Country Office is expanding its social policy scope to sufficiently include public finance and decentralization/local governance.

    “This is coinciding with the launch of a new country programmed for 2018 -2022.

    “Over the past decade, a government investment in child-related social sector in Nigeria has stagnated,’’ he said.

    Poufon said Nigeria’s annual spending in social sector had witnessed rapid decline in recent times.

    “Total spending on education revolves around 5 per cent of national budget spending, against an international commitment of 20 per cent of national budget.

    Read Also: UNICEF holds education conference for north leaders

    “Health spending decreased tendentiously from x toy per cent around 10 per cent in the region, against an African commitment (Abuja agreement) of at least, 15 per cent of the national budget.’’

    Poufon, however, said Nigeria ought to have utilized its huge oil income on enhancing the living condition of the people, especially children.

    “Nigeria, oil producing country and a middle-income economy with a strategic position as a regional powerhouse in the West Africa region, is ideally meant to use results based budgeting.

    “It is also to use a Medium-Term Expenditure Framework (MTEF) to achieve equity and better results for its population, especially children.

    “However, Public Finance in the context of UNICEF interventions in Nigeria has remained in an embryonic stage and there is a strong need for it to be strengthened to enhance comprehensive programme delivery.

    “Furthermore, the effects of climate change on a mostly agrarian population, the on-going insurgency and volatility of security due to ethnic clashes have contributed to migration and the growing number of internally displaced persons.

    “This necessitates that a strategic response to humanitarian situations, including the preparation and implementation of a contingency plan mainstreamed in state development plans with adequate public budgeting, is adequately established.

    He said the workshop was aimed at exposing UNICEF staffers to rudiment of public finance management, to enable them makes relevant budget analysis and management.

    “It is against this background that UNICEF is holding a training workshop on public finance.

    The aim, he added was to enable those concerned to have a critical mass of UNICEF staff who could engage in political dialogue for better public spending in child sensitive social sector.

    This Poufon said would be through the design and implementation of activities ensuring consistency between sectoral strategies and budget allocations and spending.

  • 2018 budget: Senators warn over Nigeria’s rising debt profile

    2018 budget: Senators warn over Nigeria’s rising debt profile

    Senators Thursday expressed concern over what they described as the ever increasing debt profile of the country.

    While Senator Solomon Adeola (Lagos West) asked the Senate committee on Local and Foreign Debts to look critically to determine the actual country’s debt profile, Senator Rabiu Kwankawso (Kano Central) said that the country must be careful not to fall into unnecessary debt trap again.

    Senator Sunny Ogbuoji (Ebonyi South) said that the debt profile of the country had been steadily on the rise.

    This is coming as the Senate Thursday put on hold consideration of the report of Joint Committee on Finance, Appropriation and National Planning and Economic Affairs on the 2018- 2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

    Senate Leader, Senator Ahmed Lawan (Yobe North) informed that the decision of the Organisation of Petroleum Exporting Countries (OPEC) on production quota yesterday (Thursday) would guide the Senate to take informed position on some parameters of the MTEF.

    Deputy Senate President, Ike Ekweremadu who briefly presided before Senate President Abubakar Bukola Saraki took over agreed and thanked Lawan for the information.

    The Senate resolved that the MTEF would be considered and passed on Tuesday, December 5, 2017.

    The lawmakers who raised issues with the country’s rising debt portfolio spoke when the upper chamber resumed consideration of the general principles of the 2018 budget.

    Adeola said, “I call on the committee on Local and Foreign Debts to critically look at the countries debt profile. The committee should determine and tell Nigerians the true profile of the country’s debts. How much of the debt service are we actually fulfilling. It is important that we know to guide us in our actions.”

    The Lagos West senator noted that it would have been better if the National Assembly was furnished with the budget performance of 2017 to enable members to make meaningful comparism.

    He also said that it is belief that the issue of virement for 2017 had died a natural death and would not come up again in view of the presentation of the 2018 budget.

    Adeola prayed the country to reconsider the number of agencies and do away with those that were adding no value to the country.

    On his own, Kwankwaso said that the Executive arm of government should be supported to maintain the prevailing stability in the Niger Delta region to ensure that the oil production quota is met.

    The Kano Central lawmaker said that he not in support of borrowing locally or from the international market except if it is absolutely necessary.

    His fear, however is that if care is not taken, the country may fall back into the debt trap especially if borrowed funds are mismanaged.

    Ogbuoji wondered why the 2018 budget was christened “a budget of consolidation.”

    He asked, “I don’t know what we are consolidating. Is it the 2017 budget that is barely implemented that we are consolidating. Are we consolidating incomplete payment of salary or salary that is not paid at all”

    The Ebonyi south lawmaker said that if 60% capital budget is rolled over to 2018 as being suggested, the budget would be further over bloated making it difficult for the country to find money to fund the budget.

    He said that it is worrisome that local debt profile is increasing rapidly.

    Ogbuoji said, “Consideration of the budget is beyond party lines. Anybody who thinks he is defending this budget is anti-Nigeria.”

    Saraki however explained that the budget was rightly christened budget of consolidation because the country has just recovered from recession “now is the time to build the economy.”

    Saraki said that question that would enable the Senate refer the budget to the committee on Appropriation would be put on Tuesday when the decision on MTEF would have been taken.

  • Senate accuses CBN, NNPC, others of frustrating passage of 2018 budget

    Senate accuses CBN, NNPC, others of frustrating passage of 2018 budget

    The Senate Wednesday said that the refusal of key government officials to honour its invitation for the consideration of templates contained in the 2018 budget is hampering its plan to pass the budget before the end of December 2017.

    The upper chamber specifically named the Governor of Central Bank of Nigeria (CBN) Mr. Godwin Emefiele, Nigeria National Petroleum Corporation Group Managing Director, Dr. Maikanti Baru and Controller General, Nigeria Customs Service, Hameed Ali as some of those who failed to honour its invitation.

    The Director, Department of Petroleum Resources (DPR) and the Director, National Bureau of Statistics, were also listed to have refused to appear before its committee to provide information that would aid the Senate to pass the budget on time.

    Chairman, Senate Committee on Media and Public Affairs, Senator Aliyu Sabi Abdullahi raised the alarm at a news briefing yesterday in Abuja.

    Abdullahi said that the Senate is disturbed by a situation where heads of ministries, departments and agencies are invited by the Senate in relation to the 2018 budget without the government official honouring the invitation.

    He noted that the joint Senate committee on Appropriation, Finance and National Planning held a crucial meeting on Tuesday to consider the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) where some heads of key MDAs were invited to throw light on the MTEF.

    He said that CBN governor, NNPC GMD, Customs Controller General, Director DPR and Director, National Bureau for Statistics who were duly invited failed to honour the invitation.

    The Senate’s spoke person said that the zeal of the upper chamber to pass the budget before the end of the year was being constrained by the action of the key agency officials.

    He said that some agency heads decided to send lowly placed officers who cannot be held responsible for any resolution.

    Insisting that it is important that the government top officials honour their invitation, Abdullahi said that dispatching lowly placed officers to stand in for them does not help matter.

    He said that nothing could be more important than the annual budget of a country “but these people decided to stay away.

    Asked whether the development would affect passage of the 2018 budget before the end of the year, Abdullahi said: “We are reporting back to the people of Nigeria the hurdle we are facing in the process of trying to meet the target. For me, I cannot give you any concrete commitment. What we are doing is to report back to the people.”

    Abdullahi said: “We want to report that the Senate is disturbed by a new trend where heads or chief executives of critical institutions who should play a critical role in this budget process but who choose to ignore the invitation by the Senate to appear before it for deliberation.

    “Specifically yesterday when we had a deliberation, the Minister of State for Budget and National Planning was around. But based on the discussion we were supposed to have, to look at the revenue projections which are the basis for the MTEF, I want to report here that the GMD of NNPC refused to show up. Governor of the Central Bank of Nigeria refused to show up. The Comptroller General of Customs refused to show up. The Director General of the National Bureau of Statistics refused to show up. And the Director of DPR refused to show up.

    “The question to ask here is this: if the national budget is very important and all of us depend on the resources of the country to run our businesses, what other business could be more important than looking at this very critical assignment for this country.

    “When you decide to send a representative that is powerless; that cannot answer critical questions; that cannot provide critical insight, it is as good as not showing up. And some of them never even sent anybody to represent them.

    “It is important that we report this because, overall, the media will still come back to us asking what progress are we making and why are we slow in taking decisions. I must make this very clear. We are trying our best and we want to see what progress we can make but we are constrained by some of these types of decisions or actions by some chief executives from the Executive side. Let it also be said that some people are not giving maximum cooperation to the National Assembly for us to do our job.

    “For example, on the issue revenue projections, where there are shortages, we will look at the performance in 2017 to see what informed the projection for 2018. But where these people are not there, how do you get answers to the things that agitate your mind? We are worried about this development and we want to urge all those who are responsible for some of these critical assignments must begin to realise that when the National Assembly is calling them, it is a national duty; it is a constitutional duty and they must take it seriously.

    “It is in anticipation of these kinds of questions that we are reporting back to you. The hurdles we are meeting in the process; when the National Assembly seeks for answers from the Executive, I think we should get those answers. That way, the process will not be impeded. I cannot make any concrete commitment because as much as we have our own internal conditions that are within our control, we also have external variables that seem to be beyond our control. One of such external variables is what I am reporting to you today.

    “It is not pleasant that when we commit to do our job, somebody is summoned and there is no response or send someone who is as good as not coming. If we ask an officer (certain questions) and they tell us they have to go back to confirm (the facts), then you have not sent an officer. If you send an officer who has full authority, when we ask then to explain issues, they can; if we ask them to make commitments, they can make it.

    “For the budget, what we are trying to say is that it is serious enough for all of these chief executives to honour the National Assembly by their presence so that we can look at these issues critically. In doing so, they will be honouring the request by their principal and our overall President and Commander-in-Chief, President Muhammadu Buhari.

    Meanwhile Joint Committee on Finance, Appropriation and National Planning and Economic Affairs laid the report of 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper for consideration and adoption.”

    The MTEF and FSP are the plant upon which the budget estimates are built.

    Its adoption will pave the way for the consideration of the 2018 budget.

  • 2018 budget: Reps bicker; conclude debate on MTEF/FSP

    2018 budget: Reps bicker; conclude debate on MTEF/FSP

    The House of Representatives Wednesday passed the 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) through second reading after a contentious debate.

    The document was referred to the Committees on Finance, Appropriation, National Planning and Economic Development, Legislative Budget and Research and Aids, Loans and Debt Management to scrutinize and make recommendations to the House.

    The passage of the document paved the way to begin consideration of the 2018 budget on Tuesday, Wednesday and Thursday next week.

    Recall that President Muhamadu Buhari on Tuesday, 17th October, 2017 had forwarded a request to the Green Chamber for the approval of the 2018-2020 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).

    Some of the key assumptions in the document is the production of crude oil at 2.3million barrels per day, oil price benchmark at $45 per barrel, while exchange rate is pegged at N305/$1 and GDP growth rate at 3.5 percent (revised)

    However the debate experienced hiccups as members of the People’s Democratic Party, PDP in the House insisted that it is procedurally wrong to debate the MTEF against the backdrop of the provisions of the Fiscal Responsibility Act (FRA).

    Members like Betty Apiafi (PDP Rivers) Nnena Elendu- Ukeje ( PDP Abia), Daniel Renejue ( PDP Delta),  Yakubu  Barde ( PDP Kaduna) , Dan Asuquo ( PDP Cross River) were of the opinion that a bad precedence would be set if the House goes ahead to debate the MTEF/ FSP as it did not come three months before the budget as required by the Fiscal Responsibility Act.

    Hardly had the House Leader, Femi Gbajabiamila commenced the presentation of his argument on the document than Hon. Betty Apiafi ( PDP Rivers) took the floor through a point of order.

    According to her, it was essential to do the right thing lest Nigerians misconstrue the motives of the legislature. She said the MTEF should precede the consideration of the budget and is supposed to be accompanied with macro- economic framework for the next three years.

    She wondered how the House would make necessary adjustments since that have allowed the executive to err procedurally.

    The other PDP members backed Apiafi’s position and held their ground until the House Leader made an appeal to them to allow the passage.

    Deputy Speaker Yussuff Lasun also made several interventions by appealing to members to allow the document pass. According to him, the House still has the power to change the assumptions to reflect the realities of the time and the wishes of the people.

    He said: “The MTEF is a paper that contains key assumptions open to debate, including benchmark, deficit, revenue projections…it is not cast in stone. Wether it is four months or now, no process has been circumvented.”

    Gbajabiamila while moving for the consideration of the document said:” Section 11(2) of the Fiscal Responsibility Act, 2007 provides that the Medium Term Expenditure Expenditure Framework ( MTEF) shall be considered for approval with such modifications, if any, as the National Assembly finds appropriate by a resolution  of each House of the National Assembly.”

    He said Section 11(3) of the same Act, “provides that the MTEF shall contain, among other things, a macro- economic framework setting out the macro-economic projections for the next three financial years, the underlying assumptions for these projections and an evaluation and analysis of the macro- economic projections for the preceding three financial years.”

    Lasun however said the leadership of the National Assembly has been in a series of meetings with the Executive in a bid to ensure the expeditious passage of the .2018 budget.

    He revealed that the two arms of government had met on Monday, Tuesday and would possibly meet today Wednesday  to smoothen grounds for a seamless passage of the appropriation bill.

     

     

  • 2018 budget ready for submission to NASS – Minister

    2018 budget ready for submission to NASS – Minister

    The Executive has concluded plans to submit the 2018 budget to the National Assembly before the end of this month.

    This disclosure was made by the minister of state for Budget and National Planning Hajia Zainab Mohammed at a press briefing to mark the end of the 23rd Nigerian Economic Summit in Abuja Thursday.

    Hajia Zainab Mohammed said the prepared 2018 budget will be presented to President Muhammadu Buhari shortly for the Federal Executive Council (FEC) approval before the budget is finally transmitted to the National Assembly.

    “We are working closely with the legislature. We want to ensure the budget is passed in December so that it start to work from January 2018” she said.

    Zainab Mohammed who was silent on when the Medium Term Expenditure Framework (MTEF) will be presented to the National Assembly said she was optimistic that the 2018 budget will passed in time to meet the January commencement of the fiscal year as planned.

    The MTEF is supposed to be submitted to the legislature months before the budget but with the minister’s revelation that the budget will be submitted this month, it is unclear if the budgeting process will not be thrown into another controversy.

    The MTEF is supposed to guide the legislators in passing the main budget and pointing them in the general direction of government’s fiscal activities for the coming three years.

    Speaking on the power sector tariff crisis, Zainab Mohammed stated that “it is clear no new investor will come without tidying the issue tariff adjustment. They insist the current tariff is not sustainable but the new tariff will be a joint agreement with all stakeholders.”

    The Federal Government she said “will carry out another privatisation exercise for the power sector because what we sought to achieve by the previous privatisation has not been achieved. It has not worked well.”

    According to her, “government is still a shareholder in the current arrangement and so we want to call all existing stakeholders to the table and agree on way forward. We will agree on the level of shareholding and other issues so that this power issue can be addressed once and for all.”
    Power she said “is key to economic development and it is something the government is determined to ensure it works.”

    On private sector players’ worry that government heavy local borrowing has crippled banks’ ability to lend to them, the Minister said “the government will reduce local borrowing for private sector to get adequate credit to operate.”

    Regarding recommendations aggregated for the successful execution of the government’s Economic Recovery and Growth Plan (ERGP), she said: “We will review them and we have said the functional economic laboratories will be set up across the country in two weeks from now. We are not waiting for months. It is part of the recommendations.”

    An issue that generated a lot talk at the summit was the multitude of bills pending before the National Assembly which if passed will accelerate economic growth. Zainab Mohammed on her part said “there are pending bills and we always try to carry out economic impact on them. For instance, the Competition Bill has the capacity to create 381,000 jobs annually, generate revenue of N148.3 billion yearly. It will also lead to a 10 per cent reduction in price of goods.”

    “For the National Transportation Commission Bill, it will also boost job creation and government revenue”.

    Despite these positive outlook, the bills have been pending in both chambers of the National Assembly for years.

  • 2017 Budget will be passed in good time – Saraki

    2017 Budget will be passed in good time – Saraki

    The Senate President, Bukola Saraki on Thursday promised that the 2017 Budget will be passed in good time, unlike the experiences with past budgets.

    President Mohammadu Buhari is expected to lay the proposal before the joint session of the Senate and the House of Representatives for consideration.

    Speaking with State House correspondents after meeting with President Buhari at the Presidential Villa, Saraki said that much consultations have been carried out on the soon to be presented 2017 Budget proposals.

    According to him, the National Assembly is ready to receive the President as soon as communication is received from the Executive.

    He also said that the issues concerning the Medium Term Expenditure Framework (MTEF) will soon be resolved.

    He said: “We are ready. Once the document comes to us, we are ready. I think this time around, a lot of work has taken place behind the scene, there is a lot of more collaboration and you will see the result of that in the time frame it will take after the president will have presented it.

    “I came for consultation with the President on a number of national issues. We are all getting towards the end of the year, getting the budget. Just regular consultation,” he stated.

    On MTEF, he said: “That is still a work in progress. I am sure that very soon, that matter will be concluded. But I am very optimistic that this year’s budget will be passed much more sooner than what we saw in the past.”

    Asked if he can give details about the budget, he said: “Well, I haven’t seen the details until the president lays it. I am sure within the next ten days, it will be presented

    He maintained that the decamping of a lawmaker on the floor of the Senate was democracy at work.

    “It is democracy at work. The opposition party has its views about the defection of a senator to the APC. Normalcy has been restored to the house and we are one family again,” he said.

  • FEC approves 2017 Budget proposal

    FEC approves 2017 Budget proposal

    Approval of the 2017 budget proposal and its onward submission to the National Assembly was given by the Federal Executive Council (FEC) on Wednesday

    The Minister of Budget and National Planning, Mr Udoma Udo Udoma, made this known when he briefed State House correspondents on the outcome of the FEC meeting.

    The meeting was presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

    He stated that the approved document would soon be presented to the National Assembly by President Buhari after consultations with the leadership of the Assembly.

    “The budget has been approved by the Federal Executive Council, the details off course, will be revealed when the President presents the budget to the National Assembly.

    “With regard to the date, the President will be communicating with the National Assembly and off course, it will be at the National Assembly’s discretion ultimately.

    “So, the president will write to them and it is after they confirm, then the president can come to address them,’’ he said.

    On the Medium Term Expenditure Framework (MTEF), the minister stated that the document was prepared after extensive consultation with stakeholders.

    He stated that his ministry would continue to ensure regular briefing on the state of the 2016 budget implementation, saying that 80 per cent of the capital allocation of the budget had been released.

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, who also addressed correspondents, disclosed that the council had approved the construction of Federal Secretariat Complex in Ekiti State.

    According to him, the council has also approved the furnishing of the Federal Secretariat in Gombe State.

    He said the Council also approved the Business case for the concession of some Small Hydro dams to achieve Incremental Power supply across the country, adding that the small hydro dams would be adequately utilized.

    “The other matter we considered, off course, was in furtherance of our Incremental Power Initiative and our Rural Electrification Initiative and this was in respect to small hydro dams.

    “This can help us get more energy, especially to rural areas to support farming; to support irrigation; to support water supply and off course rural electrification.

    “So, Council approved the Business Case for concessioning and development of Ikere Goji dam (Oyo) for 6 megawatts of electricity, Bakolori dam (Zamfara) for 3.2megawatts of electricity; and Jibiya dam (Katsina State) for 4megawatt.

    “Zobe dam 0.2 megawatts and Kpape Omi in Kogi dam for 2 megawatts of electricity and Doma dam (Nasarawa) for 1 megawatt of hydroelectricity,’’ he said.

    Fashole said that the small hydro dams would be utilised to further the nation’s quest for incremental energy in the area of renewable energy as “hydroelectricity is also clean energy’’.

  • Buhari may present 2017 budget December 1

    Buhari may present 2017 budget December 1

    …MTEF unrealistic, Senators insist

     

    President Muhammadu Buhari may present the 2017 Appropriation Bill to the joint session of the National Assembly on December 1, 2016.

    Senate Minority Leader, Senator Godswill Akpabio, gave the hint Wednesday while contributing to the debate on the 2017 to 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

    Akpabio said that the Senate President, Abubakar Bukola Saraki on Tuesday made reference to the fact that the President Buhari may be coming to the National Assembly to submit and read the 2017 budget on 1st of December 2016.

    The information came as the Senators overwhelmingly described the MTEF and FSP as largely unrealistic.

    The lawmakers took turns to tear the MTEF and FSP to shred rooting for the fiscal document to be returned back to the Presidency.

    Saraki saved the day by appealing to his colleagues that though the assumptions and estimates in the MTEF were largely incorrect they remained assumptions and estimate.

    The Senate President noted that it was the responsibility of the Senate to work on the document and use its capacity to produce a realistic document.

    Akpabio said, “We can see that we don’t have a perfect document in our hands but of course we are looking at assumptions and assumptions may not necessarily be correct. I want to suggest that we send it to the committee. Of course, the committee will invite the relevant agencies and ministries of government.

    “They will come up with a more realistic MTEF/FSP because I believe also that looking at the date that this was submitted to the Senate, (4th of October) and we are debating it today on the 23nd of November. So, a lot of indices must have changed. Wednesday, you made reference to the fact that the President may be coming to the chambers to submit and read the 2017 budget on 1st of December.

    “If that is the case and we send this (MTEF) back and wait for it to come and debate it, it means that we will not be able to meet that deadline. But if we send it to the committee level, they may come up with something within the next three days that will be much realistic.”

    So, my appeal will be that the committee members should take into cognisance all the submissions and observations made today; so that we can come up with a more realistic MTEF and FSP.
    The Medium Term Expenditure Framework and the Fiscal Strategy Paper is proposing a budget that will be predicated on an oil revenue benchmark of $42.5 per barrel for the period 2017 -2019.

    The non-oil revenue for 2017 -2019 is guided by the improved efficiency of collection and expected growth in non-oil GDP, and accordingly customs collection, Companies Income Tax, Value Added Tax and FGN Independent Revenue are non-oil sectors the government is expecting revenue from in 2017.

    The proposal also shows that the government is projecting a 3.02% GDP growth in 2017, while inflation is expected to moderate at 12 ‚92%.

    The GDP growth would be driven by strong performance in agriculture, wholesale and retail, construction and real estate sectors ‘ among others.

    Similarly, the GDP growth for the medium term is based on the assumptions of average oil production of 2.2mbpd‚2.3 mbpd and 2.4mbpd for 2017,2018 and 2019 respectively with average benchmark oil price of USD42.5pb,USD45pb‚ and USD50pb for 2017,2018 and 2019 respectively as well as an average exchange rate of N290 per dollar. It is also based on an average growth rate of 9.69% during the period.

    Deputy Senate Leader, Bala Ibn Na’Allah who presented the MTEF noted that the document is designed to reposition the Nigerian economy from the shores of recession to a sustainable inclusive growth path.

    “The fiscal strategy for the 2017 -2019 MTEF / FSP therefore is framed to fundamentally restructure the economy for enhanced productivity, efficiency and accountability in the management of national resources with the intent of unlocking the real sector and private sector potentials for bolstering growth.

    “The focus of the 2017-2019 MTEF and FSP is the utilization of targeted spending in critical sectors that will translate into quick transformative capabilities and strong linkages with medium term development plans to achieve a more developed infrastructure base to stimulate real sector productivity, job creation and increased private sector investment.

    “The 2017 budget will be guided by six principles namely realism, credibility, allocative strategic, prioritization, transparency and accountability and social safety nets

    “The policy outline in the Medium Term Expenditure Framework and the Fiscal Strategy Paper are in line with the Change Agenda of this Administration,” Na’Allah said.

    The consideration of the fiscal document followed a closed session of the upper chamber during which senators were said to have attempted to persuade themselves not to throw out the document.

    It was learnt that the Presidency refused to rework the MTEF and FSP the Senate rejected on November 3rd, 2016.

    A reliable source said that “the same MTEF we rejected and returned to the Executive was sent back to us to consider. Nothing was changed, nothing was reworked, it was the same it was submitted in October.”

    Almost all the senators who contributed to the debate agreed that the projections in the MTEF/FSP were unrealistic.

    Chairman, Senate Committee on Finance, Senator John Enoh (Akwa Ibom Central) said the first thing to consider is the broad, the basic assumptions that are contained in the document including the assumptions of the daily oil production of 2.2 which has not changed from where it was in 2016.

    Enoh said, “I think with the backdrop of a lot that is happening in terms of oil production the government especially the executive arm has to put in place a proper engagements strategy in the Niger Delta if it hopes to achieve this because as I speak am sure we are losing on a daily basis more than 600,000 or 800,000 barrels a day.

    “If that is what we are doing and then we are predicating daily production in 2017 at 2.2 then the government needs to do quite a lot in terms of the oil price benchmark of $42.5.

    “Talking about the exchange rate of N290 when in spite of the exchange rate we have figures that rotates the upper limits into as much as N350 not minding what is happening in the parallel market

    “In looking at the 2017 projections, the one that is most startling in terms of the projections that has increased is bad. VAT in 2016 was about 1.2, 1.4 but in 2017 it was projected about 2 trillion and I think that there is no real basis if for example as at September VAT indicated just about 55 percent then why are you now increasing it by more than 1trillion.”

    Senator Solomon Adeola (Lagos West) in his contribution noted that by passing the MTEF, the Senate was giving the leeway to the President to present the 2017 budget.

    The lawmaker said that the first thing the Senate should have done was to consider and analyze the performance of the 2016 budget.

    Senator Adeola added, “Going through the document before us, I want to say that the Economic Team of the government is in disarray. The document before us is not realistic. We should return it for the Economic Team to rework.”

    For Senator Suleiman Adokwe, (Nasarawa South) the problem is the bureaucracy, who have a template they recycle every year.

    Adokwe lamented that it appears there is no economic blue print to get the country out of recession.

    Senator Mohammed Hassan (Yobe North) agreed the most of the assumptions in the document were unrealistic.

    Sentor Usman Bayero Nafada warned that if the MTEF was not well done, the 2017 budget would fail.

    He wondered why the Central Bank of Nigeria Governor, Godwin Emefiele would inform Nigerians that the exchange rate stood at N305 to one dollar while the government would sent a document containing N290 to one dollar.

    Senator Jibrin Barau (Kano North) said that Senate has the constitutional power to adjust the document as it deemed correct.

    Barau also said the assumptions were wrong.

    On his own Senator Dino Melaye (Kogi West) said “Mr. President, if we speak the truth, we would die, if we lie, we would die. So I have chosen to speak the truth and die.

    “I want to say this document that I have before me, this MTEF proposal and projections of the 2017 to 2019 is a lie. This document is not truthful, it is not honest, it is not transparent and it is not factual.

    “We want to know the level of compliance of the MTEF we passed last year and it is for three years, 2016-2018. What are the new amendments, Is this MTEF predicated on the loan that the executive is requesting to take. We want to know and that is not stipulated in this MTEF. We also want to know the whether the rate of N290 exchange rate per dollar is it realistic? Is this the truth. Governance is about the truth, it is about honesty, it is about transparency, it is about opening yourself to the people.

    “The GDP is going down and this MTEF document is telling me that it is going up. So, how do you corroborate this fraud. We should not be talking about deficit to GDP in realistic term we should be talking about deficit to revenue. How much of our revenue is being used in servicing our debts.

    “You need to tell us, we need to know that what percentage of our revenue you are allocating to servicing debts but that question is very, very painful to me because recently in international forum the minister of budget and planning blatantly displaying ignorance of not knowing even what the debt profile of the government is.”

    After the debate and appeal by the Senate President, the lawmakers agreed to refer the document to the joint committee on Appropriation, Finance and Budget and National Planning for further legislative action.

     

     

  • Buhari, Saraki meet over $29.9 billion loan in Aso Rock

    Buhari, Saraki meet over $29.9 billion loan in Aso Rock

    President Muhammadu Buhari on Wednesday met for the second time within one week with the Senate President, Bukola Saraki, at the Presidential Villa, Abuja.

    They met first last Friday after the Senate on Tuesday rejected Buhari’s approval request for $29.9 billion loan.

    The Senate, the following Thursday also rejected Buhari’s request for approval for the 2017 to 2019 Medium Term Expenditure Framework (MTEF).

    It described the MTEF as “empty.”

    Saraki arrived Aso Rock Villa for the meeting on Wednesday few minutes past 3pm when the President was meeting with members of the South East Caucus in the Senate led by the Deputy Senate President, Ike Ekweremadu, and Eyinnaya Abaribe.

    Saraki, unlike Friday, was accompanied by the Senior Special Assistant to the President on National Assembly Matters (Senate), Ita Enang.

    After Ekweremadu and his delegation left, Saraki joined Buhari to pray in the Villa mosque before returning together to the office for their meeting, just like it happened last Friday.

    The meeting was termed private as State House correspondents were not allowed to cover the meeting on Wednesday.

    The Senate President, at the end of Friday meeting, had told State House correspondents that the issue of the $29.9 billion loan was work in progress.

    Bukola during the encounter also warned Nigerians not to politicise the issue of the loan request.

  • 2017 budget: FG orders MDAs to submit budget through web portal 

    2017 budget: FG orders MDAs to submit budget through web portal 

    As the 2017 budget preparations kicks off, all Ministries, Department and Agencies (MDAs) of government have been directed to submit their budgets to a designated web portal domiciled in Budget Office.

    This is a departure from the old practice of MDAs submitting their annual budgets through flash drive to the Budget office. This new development is to avoid hitches of 2016 budget creeping in to next year’s budget while the budget office will review it on line and send it back on line after corrections have been effected.

    This disclosure was made by the Minister of state in the Budget Ministry, Mrs. Zainab Ahmed Thursday in Abuja. The new process of submitting budget by MDAs, the minister added, was designed to limit human interface and ensure better quality 2017 budget.

    She also disclosed that the federal government has achieved 41.25% in 2016 budget implementation as of October 2016 with a total disbursement of N2.5 trillion.

    Speaking in an interview with financial journalists in Abuja at the 2nd presidential economic communications workshop, the Minister also confirmed that the 2017 budget is ready but the executive is waiting for the approval of Medium Term Expenditure Framework (MTEF) currently in the custody of the National Assembly for approval.

    According to her, “we planned 2017 budget very carefully by putting in place an IT system that minimizes human interface in the budget process to make 2017 Budget a very high quality budget. We now have a web portal where by ministries prepares their  budget and submits on line and the budget office reviews it on line and send back via  online where corrections would be made. This will reduce significantly the human interface to ensure we have a high quality budget.”

    She said the executive arm was ready with 2017 budget, but   waiting for the National Assembly’s approval of MTEF before   its submission   to the National Assembly.

    With regards to the current budget, the minister said the 2016 has been very challenging to the federal government in terms of revenue receipt and budget implementation.

    According to her, “it’s been very challenging for us. Apart from the fact that we are in recession, we have some of our people facing humanitarian crisis in the North East.  The Niger Delta crisis has pruned down revenue from oil and gas. We have a lot of projects that we planned to do but the revenue yield is not as we projected in the budget and this is largely due to vandalism of major oil infrastructures in  Niger Delta region.  We have minimal revenue but we have a lot of plans to share and allocate resources”, said Mrs. Ahmed.

    On what has been disbursed from the 2016 budget, she said the, federal government has released about N2.5 trillion of N6.06 trillion 2016 budget. Of the releases, she said N753 billion is for capital projects, a significant portion of which was devoted to infrastructure and related projects. N108 billion for overheads, N117 billion as statutory transfers, N142 billion for Consolidated pension, N1.2 trillion for personnel and N135 billion for service wide.

    The minister also revealed that, the government is currently developing a National Economic Recovery plan covering 2017- 2020.  The plan, she said would guide preparation of annual budgets and guide the Economic Management Team and budgeting process over short term to medium term.