The Nation Newspaper

Tag: Minister of Finance

  • We’ll invest N1.3tr annually on infrastructure  – FG

    We’ll invest N1.3tr annually on infrastructure  – FG

    In order to attract investors to the country, the federal government has said that it will continue to invest about N1.3trillion annually on capital projects to bridge the infrastructure gap.

    Minister of Finance, Kemi Adeosun, who disclosed this in Abuja when  a consortium of 20 international investors led by a former Minister of Finance, Shamsudeen Usman, visited her.

    According to her, “government invested about N1.3 trillion on capital projects last year (2016) to develop roads, rail, power, housing and all the infrastructure government thinks would be needed to unlock this huge economy,” the Minister said. “Hopefully, the figure would be around the same for 2017 and 2018.”

    She said government’s commitment to solving the infrastructure challenges in the country was firm giving that one of the cardinal focus of the administration of President Muhammadu Buhari is to address the infrastructure deficit in the country through targeted spendings at projects that would unlock the economic potential of the country.

    The visiting consortium was made up of representatives of investment, capital and equities firms from London, New York, Miami, Johannesburg and others some of which buy Nigerian bonds and equities as well as those providing advisory services to clients on the foreign direct investments (FDIs).

    Adeosun described the level of interest from foreign investors in the Nigerian economy as huge, adding that very soon, these interests would translate into massive investments that would create jobs and reduce the level poverty in the country.

    She said a lot of the projects currently being handled by government were abandoned for over 10 years, pointing out that Nigerians were beginning to feel the impact of government efforts in terms of infrastructural development.

    She noted that this is “a great time for investors to be in Nigeria. For us these are better times now than last year because finally we think that we are beginning to address through deliberate policies some of the most stubborn problems that have held back Nigeria’s growth.

    Apart from undertaking difficult adjustments in fiscal policies, she said the Finance Ministry was focusing on revenue, particularly how to move the country’s tax to GDP ratio from six percent to an initial target of 10 per cent and in the medium to long term to about 15 to 20 per cent.

    With the seriousness demonstrated by government to develop infrastructure in order to unlock the potentials of the economy, the finance minister said several companies have been coming to inquire about the prospects of opening factories and land for agriculture.

    Although she did not give specific details, the Minister said the visitors included major cassava processing firms from Brazil and Thailand who have asked for between 10, 000 and, 20,000 hectares of land for cultivation and processing of cassava.

    The leader of the delegation and Managing Director, Global Chief Economist, Renaissance Capital, Charles Robertson, told the Finance Minister that the collective worth of investments by the various firms in the consortium was about $1billion.

    Robertson said the objective of their visit was to have first-hand interaction with policy makers regarding their “positive sentiments about the country’s economy and what the outlook and investment climate is going forward.”

    He said there is a lot of optimism in the global market about Nigeria and investors have for long been waiting for positive changes in the country’s economy, it appears that the right moment has come, with investment flows rising and reserves looking up.

     

  • Bill & Melinda Gates foundation to help Nigeria repay $76m polio facility

    Bill & Melinda Gates foundation to help Nigeria repay $76m polio facility

    Nigeria has authorised Bill and Melinda Gates Foundation to start the repayment of 76 million dollars polio eradication facility to Japan.

    The Minister of Finance, Mrs Kemi Adeosun, made this known in Abuja on Tuesday when she received a delegation of Japanese House of Councillors Parliamentarians.

    She said that the delegates were in Nigeria to assess the level of usage of Overseas Development Assistance (ODAs) extended to Nigeria since 2014.

    She added that the authority to trigger repayment was given to Bill and Melinda Gates Foundation following the eradication of polio in the country.

    She noted that the eradication of polio was made possible as a result of the ODA facility provided by the Japanese Government valued at 76 million dollars in 2014.

    She recalled that the ODA was structured for repayment after four years and that by this development, Bill and Melinda Gates Foundation would start repaying the facility to Japan this year.

    Adeosun while marketing Nigeria to the Japanese delegation noted that Nigeria was fast growing and evolving from negative areas to positive areas through its determined fight against corruption.

    She added that “because Nigeria is a middle-income country, we will require the expertise of Japanese companies for infrastructure development.

    “Nigeria is a good place to invest because it is a rising investment destination.

    “I promise that the government will make life easy for Japanese investors wishing to do business in Nigeria.”

    In his address, the leader of the delegation, Mr Kiyoshi Ejima, described Nigeria as a powerhouse with rich natural resources with which Japan tried to strengthen the relationship with.

    Nigeria, he said, had set the target of becoming one of the top 20 economies by the year 2020 and he assured that “Japan will support Nigeria toward realising its 2020 target.”

  • Crisis: Senate threatens to dump 2018 budget

    Crisis: Senate threatens to dump 2018 budget

    Nigerians may not have heard the last about the passage of the 2018 budget presented to a joint session of the National Assembly by President Muhammadu Buhari on November 7.

    Senators in plenary Tuesday threatened to dump the fiscal estimate over alleged inconsistencies and abysmal performance of the 2017 budget.

    The lawmakers took turns to criticize the performance of the 2017 budget, taking cognizance of what they called extremely low releases by the Ministry of Finance to fund projected capital projects.

    They insisted that the promised passaged of the 2018 budget before the end of the year was no longer feasible.

    The senators said that the promise by President Buhari that 40 per cent of the 2017 budget would be achieved before the end of the year while remaining the balance of 60 per cent would be rolled over to 2018, has not be adhered to.

    The lawmakers were particularly irked by the observation that Ministries, Departments and Agencies (MDAs), only attained 15-20 per cent 2017 budget performance.

    This, they said, was despite repeated assurances by the executive arm that improvement in releases of funds will be made.

    Most MDAs, they said, were yet to receive funds to pay salaries and as well as fund other recurrent components of the 2017 budget.

    For them, the declaration by the Minister of Finance, Mrs Kemi Adeosun, that N750 billion had been released, remained questionable.

    Senate President, Abubakar Bukola Saraki’s intervention saved the day as no resolution was taken at the end lengthy debate on the performance of the 2017 budget.

    Many of those who contributed to the debate wanted the lifespan of the 2017 budget to be extended to  31st of March, 2018.

    It was the opinion of the speakers that until the 2017 budget attained a high level of performance, the implementation of the budget should not be truncated by the passage of the 2018 budget.

    The debate of the performance of the 2017 budget followed a closed door session where the lawmakers were also said to have bared their minds.

    Although Saraki broached the issue of what really transpired at the closed session, Deputy Senate Leader, Bala Ibn Na’Allah raised a point of order.

    Na’Allah cited Order 42 and 45 of the Senate Standing Rules to buttress his point.

    The Kebbi South lawmaker told his colleagues that the plan to pass the 2018 budget before the end of 2017 was no longer feasible due to prevailing circumstances.

    He warned that the prevailing template of the budget will continue to pose serious challenges to the Federal Government in the implementation of the budget.

    Na’Allah noted that the template was developed and adopted during the Military era specifically when Kalu Idika Kalu was Finance minister.

    He said that issue should be extensively discussed in order to proffer solutions.

    Na’Allah said: “I feel that there are certain aspects that the Senate has so many things to discuss. When we suspended the plenary for two weeks, the intention was to enable committees work. They are supposed to report progress in order to enable the Senate pass the budget before the end of the year or early next year.

    “When we suspended plenary, it was with the idea that the committees will swing into action so we can have a tentative date to pass the budget. From what I have seen, we might run into troubled waters. If we have not appreciated what the problems are, it is important for Nigerians to come here and understand what the problem is.

    “The template we are using will continue to create problems for us. It was created during the Military era. The template cannot work in our country today. From reports we have had, it is obvious that we have problems. We need to know what the problems are. If we have a 2017 budget that has not been executed today and we are considering the 2018 budget, it means there is a problem.

    “The President told us that the 2017 budget was going to achieve at least 60 per cent performance. Today, that has not happened. We need to lay this issue and discuss it. Let us put the facts before the Executive and show Nigerians the difficulties we are facing.”

    Senator Barnabas Gemade, in his contribution suggested that the consideration of the 2018 budget be suspended.

    He also suggested that the lifespan of the 2017 budget be extended to end of March of 2018.

    Gemade said, “This point of order raised is important because of what the public is waiting for. Our two weeks committee work should have led us to where we will lay the report and pass the budget. As was indicted, we need to appreciate the efforts of the executive who is trying to return the budget year from January to December.

    “What we have seen is far from the 40 per cent capital project implementation we were told. In many MDAs, budget performance is hovering between 12 to 15 per cent. In early November, the borrowing plans were brought and we approved it. They said they were going to release more funds. As of now, we cannot say if that is true.

    “In defending the budget, MDAs are supposed to bring their 2017 budget performance to committees. When you look at the budget proposals brought here, many things captured in the 2017 budget were not rolled over. Committees and MDAs need to do some work.

    “We have to set a date for the implementation of the 2017 budget based on the borrowing plans we approved. I therefore propose that we set March 31st for the 2017 budget to be implemented before we can start working on the 2018 budget. We need to guide against abandonment of ongoing projects.”

    Senator Solomon Adeola wondered why the Senate should consider and approve the 2018 budget, when the performance of the 2017 budget is unknown.

    The Lagos West senator prayed the Senate to invite the Minister of Finance, Mrs Adeosun to brief the chamber on the troubling low performance of the budget and why her Ministry is not releasing funds.

    Adeola said, “How can we approve the 2018 budget without knowing the performance of 2017 budget? This is abnormal. From the recent budget defences, it is obvious that MDAs are not ready. Year in, year out, the budget performance is low. Last week, a Minister was asked to excuse lawmakers because he did come prepared. He did not come with the necessary documents to defend the budget of his Ministry.

    “We need to show to Nigerians that the National Assembly is ready to approve the budget. Remember that the President during the presentation of the 2018 budget, said the performance of the 2017 budget will attain at least 40 per cent. But that has not been done. I am suggesting that we invite the Minister of Finance to brief us on the performance of the 2017 budget. We need to be told.

    “Remember how the Executive submitted the MTEF and withdrew it again. It submitted it and withdrew it again. It shows the lack of seriousness on the part of economic managers of the country.”

    Chairman, Senate Committee on Public Account, Senator Matthew Urhoghide, noted that the consideration of the 2018 budget be suspended, pending when the 2017 budget will attain appreciable level of performance.

    He said, “I want to say that the budget of 2018 is already bedeviled. For us to be able to determine the 2018, we need to see the performance of 2017. Many MDAs are complaining that what they are getting for recurrent expenditure is not even for them. More worrisome is the capital expenditure.

    “Last week, the Minister of Finance announced that N750 billion had been released. If this money has been released, MDAs are yet to get this money. With the envelope budgeting they are doing, we do not know what has been given to MDAs.

    “I want to say that every consideration about the 2018 budget should be put at bay. This executive is not serious. Let them tell us what they have done with the 2017 budget. The budget presentation is an annual ritual that is not benefiting anybody,” he said.

    Senator Mohammed Hassan, (Yobe South) proposed the setting up of a technical committee to come up with a standard format on how to handle the 2018 budget.

    He specifically listed the inclusion of N8.5 billion in the budget of Ministry of Power for counterpart funding of the Mambila Power projected when the National Assembly had already approved a loan of $5.5 billion for the presidency.

    He noted that the Senate was told that part of the $5.5 billion loan would be used for the counterpart funding of the Mambila power project.

    Hassan said: “Many of us have been made to do the work of the executive. We need to set up a small technical committee to come up with a standard format on how to handle the 2018 budget. It is very important to do that.”

    Senator Dino Melaye, on his part, described the 2018 budget as a ‘boju boju’ document.

    The Kogi West lawmaker said that it was obvious that the 2018 budget proposal was “garnished with deception.”

    He stated: “The President of the Federal Republic of Nigeria, Muhammadu Buhari, said during the budget presentation that the 2017 budget will be rolled over. I took the 2017 budget and went through it page by page. There is no relationship between the two documents. The budget we received was a ‘boju boju’ budget. Why do we package a 2018 budget that was garnished with deception”

    “There is about N850 trillion with the CBN. There is an outstanding of N1.5 trillion from collection of stamp duties with the CBN. This money has not been remitted. Yet we took over N2 trillion loan. We need to strengthen the office of the Accountant-General of the Federation.

    “The NNPC was supposed to remit hundreds of billions of naira last year. They did not do that. Yet, we say we are fighting corruption. We cannot continue in sin and ask grace to abound. The issue of discussing the 2018 budget should not even arise.

    “Enough is enough. We must ensure that the 2017 budget is properly implemented. We must ensure that the budget is an elitist. What they have brought to us is a just a proposal. We need to give Nigerians a budget that will benefit Nigerians.”

    Saraki who did not subject the points and proposal made to vote noted that if the executive refused to act, by rolling over the 2017 budget as promised, it will be a disaster.

    Saraki added that lawmakers are not magicians.

    He said, “Truly, it is very disheartening and disappointing because we know how much we have put into the budget process. How can anybody who is responsible travel at this period when the budget defence is ongoing?

    “The budget has not been implemented. We cannot be magicians. We just have to work and give a good budget to Nigerians. The executive really needs to sit up. If they have refused to roll over the 2017 projects into 2018, it is a disaster. We have to work with what we have.”

  • Finance Minister: only 40 million Nigerians pay tax

    Finance Minister: only 40 million Nigerians pay tax

    Out of 70 million taxable adults in Nigeria, only 40 million of them pay taxes, the Minister of Finance, Mrs. Kemi Adeosun has said.

    She spoke at the first annual lecture of the Lagos State Professorial Chair of Tax and Fiscal Matters held at the Ade-Ajayi Auditorium of the University of Lagos.

    Mrs Adeosun who chaired the lecture, said about 13 per cent of the active tax payers have their taxes deducted at source under the Pay as You Earn (PAYE) category.

    She said tax policies cannot be rigid and needed regular reviews so that many more of the 30 million defaulters pay their taxes.

    She said: “I have kept asking why the 30 million people have refused to pay taxes. Another major challenge is the fact that many Nigerians have other sources of income, yet they are only taxed only through the PAYE. Yet, they earn so much from part-time jobs, and extra businesses.”

    According to the minister, new tax policies in the country must capture online businesses, entrepreneurship and others such as the film industry, otherwise regarded as nollywood.

    Mrs. Adeosun, who reiterated the importance of taxation to national development, noted that every developed country has a well developed tax policy and that Nigeria cannot be an exception.

    In his lecture titled: “Policy, Legal and Administrative Imperatives in the Quest for Eradicating Multiplicity of Taxes (MOT) in Lagos State” Prof Abiola Sanni of the UNILAG Law Faculty, lamented the intractable nature of “the phenomenon called multiplicity of taxes in Nigeria despite the effort aimed at addressing it and need to consider fresh interventions from the dimension of tax policy.”

    Sanni  said Lagos State had nine tax laws from which the government gets income but a review revealed that only three of them – hotel occupancy and restaurant law, land fees  and land use charge, and wharf landing fees law are currently been administered in the state.

    He further said the Federal Government should admit that an important aspect of Value Added Tax (VAT) on intra-state supply of goods and services was within the taxing powers of states and should be allowed to use it.

  • Reps to Adeosun: Maintain status quo on SEC

    Reps to Adeosun: Maintain status quo on SEC

    The House of Representatives has asked the Minister of Finance, Kemi Adeosun to reinstate the suspended Director General ( DG ) of the Securities and Exchange Commission ( SEC ), Munir Gwarzo.

    The House directed that status quo be maintained until the outcome of its investigation to be carried out by its Committee on Capital Market & Institutions within two weeks.

    The decision of the House followed the adoption of a motion of urgent national importance by Diri Duoye (PDP, Bayelsa), who noted that the conflict between Minister of Finance, Kemi Adeosun and the suspended DG, Munir Gwarzo over Oando Forensic Audit and corruption allegation were major factors in the events that led to the suspension.

    He said: “The conflict has led to the suspension of the DG, SEC alongside Head Legal Department and Head Media on the 29th November, 2017. It has also led to the setup of an Administrative Panel of Inquiry and appointment of Ag DG by the Minister of Finance.

    “It worthy of note that the conflict has been allegedly lingered for several months between Ministry of Finance and Securities and Exchange Commission but the matter of disagreement brought it into the public domain.

    “It is however observed that there are allegations of interference by the Ministry of Finance in the discharge of responsibility by SEC particularly, the Oando Forensic Audit matter, which was largely responsible for the DG’s suspension

    “In addition to that, the intervention by the House will put the matter into proper perspective and amicable resolution of the conflict in order to protect the image of the Securities and Exchanges Commission in the interest of both local and foreign investors”.

    In his contribution, Toby Okechukwu (PDP, Enugu) said whatever us happening now was reminiscent of what happened before the collapse the sector in the past.

    “What is happening in SEC is symptomatic of the collapse of capital market. I wouldn’t know why infractions should be swept under the carpet.

    “The Nigerian people should be told why the infractions of Oando will be swept under the carpet. Nigerians should know why the minister cannot be investigated.

    “Nigerians should know why the DG was sacked. A total panel of inquery is needed in SEC”, he said

    Sani Kaita (APC, Katsina) said: “SEC is very sensitive and very important to Nigeria and international community. Should we allow the investigation to go on without knowing what happened?”

    The motion was unanimously adopted after it was put to a voice vote by the Speaker, Yakubu Dogara.

    However, in a statement by SEC’s Head of Corporate Communications, Bagudu Waziri, an audit forensic exercise into the activities of Oando Plc would be conducted.

    Waziri made this known in a letter dated December 5, addressed to Oando Plc, stating that, “The Commission wishes to assure the general public of its zero tolerance to infractions in the Nigerian Capital Market”.

  • FG approves Road Trust Fund

    FG approves Road Trust Fund

    The Federal Executive Council (FEC) on Thursday approved the Road Trust Fund (RTF) towards facilitating and incentivising private sector involvement in the provision of Nigeria’s Federal road infrastructure.
    The Minister of Finance, Kemi Adeosun, disclosed this to State House correspondences at the end of FEC meeting.
    According to her, it is a form of Public Private Partnership (PPP) that will accelerate the provision of Federal Roads by allowing private sector operators to collectively fund road provision in exchange for tax credits.
    “This will complement Federal Government’s budgetary allocation to roads.” she said
  • Buhari for ECOWAS Task Force meeting on common currency ‎in Niamey

    Buhari for ECOWAS Task Force meeting on common currency ‎in Niamey

     

    President Muhammadu Buhari will Tuesday depart for Niamey, Republic of Niger, to participate in a meeting on common currency for the West African sub-region.

    Member countries of the ECOWAS Task Force on Common Currency are ‎Nigeria, Cote d’Ivoire, Ghana and Niger.

    A statement by the Special Adviser on Media and publicity, Femi Adesina, said that the President will be accompanied by the Minister of Finance, Mrs Kemi Adeosun and the Central Bank of Nigeria governor, Mr Godwin Emefiele.

    President Buhari will return to Abuja same day after the meeting.

  • Sukuk Bond: 10 contractors get N100b for 25 road projects

    Sukuk Bond: 10 contractors get N100b for 25 road projects

    The Federal Government on Thursday presented a cheque of N100 billion to 10 contractors awarded the job to construct and rehabilitate 25 road projects across the country.

    Cost of the road projects funded through the Sukuk bond was shared equally at N16.67 billion among the six geopolitical zones to ensure an equal spread of the project.

    Addressing journalists at the cheque presentation in Abuja, the Minister of Power, Works and Housing, Babatunde Fashola, said the gesture was a fulfilment of his promise to the contractors during the September meeting, to address the funding challenge.

    He described the finance as a sign of hope towards the nation’s economic development.

    The contractors are CGC Nigeria Limited, Arab Contractor Nigeria Limited, CCECC Nigeria Limited, Salini Nigeria Limited, Reynolds Construction Company Nigeria Limited and Setraco Nigeria Limited. Others are Dantata & Sawoe Construction Company Nigeria Limited, Eksiogullari Nigeria Limited, Mothercat Limited and Gitto Constrizion Generali limited.

    Some of the projects included: rehabilitation and reconstruction of Enugu-Port Harcourt dual carriage Section II by Arab contractors at N3,750,000,000; dualisation of Lokoja-Benin road by CGC at N2,500,000,000; dualisation of Kano-Katsina road Phase 1 by CCECC at N3,000,000,000; rehabilitation of Enugu-Port Harcourt road section IV by CCECC at N3,500,000,000; dualisation of Yenegwe road junction-kolo-Otuoke by CCECC at N3,500,000,000 and dualisation of Kano-Maiduguri road by CCECC at the sum of N5,000,000,000.

    Others are: Dualisation of Suleja-Minna road in Niger State by Salini at the sum of N3,521,958,532.49; reconstruction and asphalt overlay of Benin-Ofosu-Ore-Ajebandele- Shagamu dual carriageway by RCC at N6,000,000,000; dualisation of Ibadan-Ilorin road Section II by RCC at the sum of N5,666,666,666.67; rehabilitation and reconstruction of Enugu-Port Harcourt dual carriageway Section 1 by Setraco at the sum of N4,000,000,000; Dualisation of Lokoja-Benin road by Dantata & Sawoe Construction Company awarded at the sum of N3,166,666,666.67

    The construction of Kaduna Eastern By-pass in Kaduna state was awarded to Eksiogullari Nigeria Limited at the sum of N4, 666,666,666.67; the dualisation of Kano-Maiduguri road linking Kano-Jigawa-Bauchi-Yobe and Borno States by Mothercat limited at the sum of N3,500,000,000; dualisation of Abuja-Abaji-Lokoja road by Gitto Constrizion Generali limited at the sum of N3,500,000,000 among others.

    In his remark, the Minister of Finance, Mrs Kemi Adeosun said the money would be expended primarily on the road construction projects targeted to open-up opportunities and develop the nation’s economy.

    Describing the bond as first of its type in the country, she said it was about financial inclusion and deepening of the country’s financial sector.

    According to her, the bond was already oversubscribed by investors and other key stakeholders.

    “We are using the money on roads that will open-up potentials of the economy”, Adeosun added.

    The Ministry’s Director of Highway Planning and Development, Engr. Uzor listed the projects based on the order of importance.

    The Financial Advisor, First Bank of Nigeria (FBN) Capital, Mr. Taiwo Okeowo, lauded the federal government for facilitating quick completion of the process.

    The representative of the contractors, Engr. Moussa Nakhla expressed excitement at the development stressing that the contractors would deliver on the projects as expected.

    “Nobody can hide our smiles. We thank the federal government for giving us hope. We believe a lot in this country and we know this country is committed to really helping the people,” Nakhla stated.

  • 2017 Budget: Senate summons Adeosun, Udoma

    2017 Budget: Senate summons Adeosun, Udoma

    The Senate has asked the Minister of Finance, Mrs Kemi Adeosun and  Minister of Budget and National Planning, Senator Udoma Udo Udoma to appear before its Joint Committee on Finance and Appropriation on Tuesday, Oct. 3.

    The Senate, which had on September 26, asked the ministers to appear before it in plenary to brief it on the level of implementation of the 2017 Budget, changed its decision on Thursday.

    The decision followed a point of order raised by the Leader of the Senate, Senator Ahmed Lawan.

    The lawmakers adopted the new position following a voice vote.

    Lawan in his point-of-order appealed to his colleagues to allow the committees interface with the minister for a more robust discussion.

    According to him, some of his colleagues advised that there would be more room for the ministers to discuss the state of the economy at the committee level.

    In his remarks, Senate President Bukola Saraki urged the Clerk of the National Assembly to communicate the position of the Senate to the ministers.

    The upper chamber had summoned Adeosun and Udoma to appear before it to offer explanations on the state of the economy.

    The invitation followed a report that the country had come out of recession, and also the level of implementation of 2017 budget.