The House of Representatives yesterday rejected the Federal Government’s exchange rate of N305/dollar in this year’s budget, saying it would engender huge corruption, with the almost N500/dollar at the parallel market.
Members of the Green Chamber also queried the Executive on the domestic borrowing plan of the President Muhammadu Buhari administration, saying it will stifle funds that could have been made available to the real sector and small businesses to grow the economy and move the country out of recession.
Of the N2.321 trillion borrowing plan projected in the budget, N1.253 trillion is to be sourced from the domestic market.
The lawmakers, who spoke during an interactive session with members of the Executive with the committees on Finance, Appropriation, Aid Loans & Debt Management, Legislative Budget and Research and National Planning & Economic Development on the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) also said the government was not doing much to reign in inflation which presently stands at 18.55 percent.
Members in the various committees at the meeting also accused the Federal Government of insufficient consultation with stakeholders, especially the National Assembly while developing the MTEF, adding that the parameters in the budget are different from that in the MTEF initially submitted to the National Assembly
But the Minster of Budget & National Planning , Senator Udo Udoma, said the government has a multi-facetted plan to move the country out of recession.
On inflation, he said: “ It is our objective to move towards a very low inflation environment because we need to move to a low inflation environment so as to have sustained and sustainable growth.
“We believe that, as the Central Bank had said, many of the things that were feeding into the inflation in 2016 is that once we can stabilise the exchange rate and other aspects of the economy, we will reduce the rate of inflation .
“But we need to do a lot more than that. We need to reduce the cost of doing business and we have a number of plans to achieve that. We need to get Nigerians back to work. We need to get single interest loans, particularly in the key areas, such as agriculture and all that, to get people back to work. Already the Central Bank is working on that.”
Udoma said the government was doing a lot, which it believes will restructure the economy. According to him, the difficult and challenging phase the country is passing through is seen on the part of the executive as an opportunity “to change things in a fundamental way”.
Finance Minister Kemi Adeosun said the government had put a lot of measures in place to stimulate the economy. She said people should be careful about putting their faith in the black market as it drives inflation.
“There is a number of structural initiative to close the gap. We have to look at why are people buying dollars at such high amounts. It’s driven by irrational and emotional factors.”
Adeosun said the Fundamentals show that the naira should be strengthening presently. “The black market will collapse because it’s not being driven by any fundamentals,” she said.
On Treasury Single Account (TSA), the minister said it was counter productive to put the government’s money in commercial banks only for them to loan it back to the government at higher rates.
Mrs. Adeosun said the government was spending more on infrastructure. “We’re targeted on spending on what will bring us out of the recession,” she said.
At the session were the Ministry of Finance, Budget and National Planning, Mines and Solid Minerals Development, Office of the Accountant General of the Federation, the Nigerian National Petroleum Corporation (NNPC), Nigerian Customs Service.
Others were Federal Inland Revenue Service (FIRS) and the Debt Management Office, Central Bank of Nigeria (CBN), and the Department of Petroleum Resources (DPR).
Tag: Reps
-
Reps reject N305/dollar exchange rate for budget
-
Reps urge FG to offer Jammeh asylum in Nigeria
The House of Representatives on Thursday urged the Federal Government to consider asylum offer for Gambia President, Yahya Jammeh.
The House, however, advised Jammeh to respect the wish of the citizens of the country, who voted against him in the recent presidential election, the News Agency of Nigeria (NAN) reports.
It expressed support for the President Muhammadu Buhari-led diplomatic negotiations at stabilizing Gambia as the country grappled with political crisis resulting from the poll.
The resolutions of the lawmakers followed a motion by Sani Zorro (APC-Jigawa) which was adopted by members through a majority voice vote.
Moving the motion, Zorro had said the clock was ticking fast for the survival of democracy in Gambia and that there was the need to intensify preventive diplomacy to save the country.
According to him, Nigeria’s past leadership has played roles in restoring peace and settling conflicts in various Southern and West Africa nations, including Congo, Chad and Liberia.
He said Nigeria’s policy of extending safe haven to endangered African leaders had been part of the nation’s dispute settlement.
Zorro added that such gesture was extended to President Felix Malloun of Chad, Charles Taylor and Yomi Johnson, both of Liberia and others.
Supporting the motion, Nnenna Elendu-Ukeje (PDP- Abia), said granting asylum to the embattled Gambian leader was in consonance with Nigeria’s foreign policy thrust.
-
Reps Summon IGP over N7.2bn misappropriation
The House of Representatives on Thursday summoned the Inspector General of Police, Ibrahim Idris, over violations of the 2016 Appropriation Act, the Fiscal Responsibility Act and the Public Procurement Act.
Specifically, Idris is to answer queries on why the sum of N1.2 billion approved in the Appropriation Act of 2016 for the purchase of 10 Armoured Personnel Carriers (APC) by the Nigeria Police Force was diverted for the purchase of 64 Toyota Hiace Commuter vehicles without the approval of the National Assembly.
Idris is also expected to explain how the sum of N6 billion appropriated for rehabilitation and reconstruction of 102 police stations nationwide was also diverted for other uses without the approval of the National Assembly.
According to the House, the IGP is to appear before the Committee on Police Affairs unfailingly on January 19.
The resolution of the House was sequel to the passage of a motion by Hon. Onyenwife Gabriel on the issue.
While moving the motion, Gabriel urged the House to call the IGP to order, saying infractions of the Appropriation Act 2016, the Fiscal Responsibility Act 2007 and the Public Procurement Act, 2007 are just a few of the several infractions committed by the Nigeria Police Force in the course of implementing the 2016 budget.
-
Reps query purchase of 63 ambulances by ministry
The Public Accounts Committee of the House of Representatives at the weekend queried the purchase of 63 ambulances by the Ministry of Women Affairs without due process.
Members of the Kingsley Chinda- headed committee were surprised that though the Federal Executive Council approved N458 million for the purchase of 63 vehicles, the ministry went ahead to buy only 39 vehicles for N558 million.
The ministry then allegedly went ahead to buy 24 extra at N587 million.
The committee grilled the ministry’s Permanent Secretary, Obiageli Phyllis Nwokedi, over the fact that states that were listed as beneficiaries of the vehicles did not get them and that huge amounts were added to increase the number of vehicles purchased from 39 to 63 without appropriation.
The committee questioned the ministry based on queries from the office of the Auditor-General of the Federation (OAGF), spanning in 2010 to 2013 and wanted to know where the ministry got the extra funds for without virement or recourse to the National Assembly.
The answer by Mrs. Nwokedi that the fund was sourced from the research and development vote was not acceptable to the committee.
The OAGF in the audit queries also wondered what became of 21 vehicles out of those procured by the ministry.
According to the audit queries, records allegedly show that only politicians and corporate bodies in the targeted states benefitted from the ambulances.
The committee members expressed dissatisfaction on the conduct of the ministry, saying though the ministry claim to be in 13 states of the country, the list used for appropriation was not followed and the ones not listed were the beneficiaries.
The chairman of the committee was not happy with the Permanent Secretary and discountenanced her claim that she is new in the ministry, saying governance is a continuum.
The ministry was, therefore, requested to provide a full list of all the vehicles, their registration numbers and their distribution across the states.
The ministry is also asked to provide the committee with an up to date asset register.
-
Reps approve N420b CBN’s 2016 budget
The Central Bank of Nigeria (CBN’s) budget of N420,787,701,850.00 for 2016 has been passed by the House of Representatives.
The budget that ends on December 31 this year has N419,672,000,320 allocated for recurrent expenditure, while the excess revenue over expenditure stood at N1,115,701,530.
Details of the budget that was presented by Chairman Committee on Banking and Cureency, Jones Onyereri (PDP, Imo) was neither attached nor debated on the floor at the Committee of Supply chaired by the Speaker, Yakubu Dogara.
A budget of N10,634,353,111 was also approved for National Drugs, Food Administration and Control (NAFDAC).
The breakdown of NAFDAC’s budget showed that N6,906,795,811 is for overhead costs, and N3,727,557,300 is for capital expenditure for the year ending December 31, 2016.
The 2016 NAFDACbudget has N900m allocated for Capital expenditure and another N900m to provide mobile laboratories and accessories. N80m was set aside for laboratory equipment and N201,964,050 on NAFDAC HQ Laboratory Building- Construction and N101,540,000 on provision of Motor Vehicles.
-
Reps visit Bayelsa to probe death of female corps member
Members of the House of Representatives have opened investigations into the death of Miss Elechi Chiyerum, a female member of the National Youth Service Corps (NYSC) posted to Bayelsa State.
Miss Chiyerum was confirmed dead at a hospital in Yenagoa after she was found sick at the orientation camp in Kaiama, Kolokuma-Opokoma, area of the state.
Members of the House Committee on Youth Development, led by their Chairman, Mr. Segun Adekola, were in Yenagoa, the state capital, to determine the circumstances that led to her death.
The members met with the governor of the state, Mr. Seriake Dickson, and later toured the orientation camp where they held talks with the state Coordinator, NYSC, Mr. Anthony Ekeocha, and other officials.
While addressing the delegation, Dickson called on Nigerians and government at all levels to treat corps members in their domains with honour and dignity.
He said the government and people of Bayelsa State had always accorded corps members the love and respect they deserved because of their importance to nation-building.
He lamented the death of the corps member describing the incident as sad and unfortunate.
The governor further condemned the unwarranted attacks on corps members serving in some parts of the country.
Reinstating his commitment to the welfare of corps members Dickson promised that the permanent orientation camp in the state would soon be ready.
After touring the facilities at Kaiama Orientation Camp, Adekola, the leader of the delegation said there was an urgent need for the federal government to begin an upward review of the welfare packages for corps members.
He said they were in the state to investigate the death of the corps member and to determine if funds appropriated for the scheme were properly utilized.
While addressing corps members at the camp, he said the N500 daily feeding and N19,500 monthly stipends were inadequate consideration in the face of biting economic hardship and rising cost of goods and services.
He said: “We have come and seen the challenges facing corps members. We also know that the N500 per day for meal is inadequate.
“We equally know that the N19, 500 at this time of recession is inadequate. The prices of goods and others are high. The N19.500 is nothing to write home about. Something will be done.”
Ekeocha told the committee that 1578 corps members, comprising 866 males and 712 females, were registered for Batch B.
He regretted the sudden death of the female corps member and said they were always in the habit of referring sick members to medical facilities.
Other members of the committee are Iboro Ekanem, Deputy Chairman; Asabe Bashir, Akintayo Amere, Segun Ogunwuji and Mukaila Kassim. -
Reps to Buhari: suspend ban on cars importation via land borders
The House of Representatives yesterday advised President Muhammadu Buhari to suspend the ban on importation of new and used cars through land borders.
The ban that was announced on December 5 by the Nigerian Customs Service (NCS) was due to take effect from January 1, next year.
The lawmakers however said the policy was too harsh as it is bound to pile more economic miseries on the majority of Nigerians that are already groaning under the prevailing economic recession.
The decision of the lawmakers followed the adoption of a motion by Abdulahi Salame (APC, Sokoto) who noted that the percentage of Nigerians who can afford cars has declined drastically following the decline in the value of the naira, inflation, unemployment and high cost of living that have bedeviled Nigeria where over 80 per cent of the population live below $200 a day.
He said: “With its powers under Section 18 of the Customs and Excise Management Act, the government can restrict the movement of goods into and out of Nigeria by land or inland waters and to appoint customs stations, but similar exercise of such powers on rice importation through the land borders in April 2016, has led to untold hardships on Nigerians as a bag of rice now sells for between N20,000 and N23,000 as against N8,000 few months ago.
“We are also aware that the government has not put in place alternative measures to ensure that Nigerians will have access to cars since it is cheaper to buy cars from neighbouring countries and still generate revenue by ensuring that our borders are secured to prevent smuggling and also that there will not be job losses.
“Some of those making these policies have failed to patronise made-in-Nigeria goods, especially Nigerian assembled vehicles which are, in any case unaffordable to over 80 per cent of Nigerians who can only afford fairly used imported cars.
“It is of concern that despite the pitiable state of most Nigerians occasioned by unemployment, lack of funds for survival and high cost of living which has sent many to their early graves, the government is adopting a policy that will further increase the sufferings of the masses at this critical time the country is in recession.
“It is eqaully worrisome that the ban will cause more harm than good as it will certainly lead to increase in smuggling, deprive poor Nigerians of access to acquiring vehicles, skyrocket the price of cars cleared at wharf, increase inflation and further mount pressure on the already weak naira and lead to idleness, insecurity and criminality at the border posts.”
Lawmakers that spoke in favour of the motion noted that it is the masses that would be affected more by the new policy.
According to them, the reason put forward about payment of duties was not enough to punish the entire country because non-payment of duties was carried out with the active connivance of security officials at the borders.
-
Reps to residents: stop paying tax to unlawful collectors
The House of Representatives has advised residents of the Federal Capital Territory (FCT) to stop paying tenement rate and property tax to consultants, explaining that the body responsible for tax collection in the FCT has not been set up.
While condemning the unlawful collection of taxes in the FCT, the lawmakers said the crude method employed by the so-called consultants was designed to extort money from residents.
The House has directed its Committee on FCT to conduct an investigation into the matter as well as establish the reason behind the non-composition of the FCT Internal Revenue Board (FCTIRS) despite previous resolutions of the House to do so.
The decision of the House followed the adoption of a motion by Emmanuel Oker-Jev (APC, Benue), who regretted that certain individuals have in various guises engaged in forceful collection of taxes and tenement rates without the consent of relevant authorities.
According to him, the taxes and rates are arbitrarily collected by individuals brandishing forged court documents while threatening to lock up premises of defaulters
Oker-Jev noted that such act was aimed at defrauding unsuspecting members of the public in these days of recession.
“It is worrisome that the FCTIRS, the agency empowered by law to collect taxes and rates in the FCT has not been set up, thus allowing all manners of individuals to extort money from hapless law-abiding residents of the FCT,” he added.
The lawmakers were unanimous in their condemnation of the illegality saying that a stop must be put to it immediately because to extort money from anyone in this period of recession is sheer wickedness.
The lawmakers also noted that forcing residents to pay illegal taxes by the consultants, who were described as hawkers amounts to double jeopardy as the victims would have to pay such taxes again whenever the appropriate body is set up by the FCT administration.
It was also noted by the lawmakers that extortion and forcefully locking up people’s businesses may lead people to self-help.
The lawmakers advised that tax must be structured by relevant authorities saddled with the responsibility of tax administration and that Nigerians have the right to know who they are paying the tax to.
The House also resolved that its investigation must also determine why the illegality has been been going on.
-
That Reps order on MMM
SIR: I read the report of the order given by the House of Representatives, directing the Economic and
Financial Crime Commission, EFCC and the Central Bank of Nigeria, CBN to swiftly go after the promoters of the famous “wonder-working bank” that has monopolised the economic space of the ‘common’ and ‘non-common’ Nigerians, known was Mavrodi Mondial Moneybox a.k.a MMM.
The members overtly assumed, in the temperament of the said order, the role of a passionate father and a good ‘shepherd’, whose primary concern is to watch over the flocks, one who would not allow any stint of untoward thing to befall the sheep. There may not be any crime in that, and in fact one must not but applaud such a caring attitude, but only when the illocution and genuineness of such generosity is not self-styled, or questionable.
The argument of the lawmakers was that MMM, “was not regulated by law or approved by CBN as a secure business venture” and that it “made Nigerians more vulnerable”. One cannot but to just wonder at the very implicating though interesting lexicons used to describe the scheme as being a “scam and a “trick”.
The main crux of my lamentation is that the government or any of its organs or agencies has no moral impetus to choose for Nigerians what to do and what not to; especially in such a pitiable situation where the nation’s economy is radically deteriorating every day while the government is utterly confused and seems not to have a way out.
Whether MMM is a legal or illegal business is an ethical question that that will lead to an open-ended debate. It is an incontrovertible fact that Nigeria runs one of the most expensive legislatures in the world. The incentives attached to the running of our legislature are nothing compared to the output we are getting from our hallowed and hollowed chambers; our legislature, frankly, is a white elephant project.
My angst against the government is that we have many people seated in ‘high places’ with totally dead or moribund conscience. For how can a government ask one, being a poor man, to make a sacrifice with, say his meagre earnings, while they are living an overt opulence and affluence? How does one reconcile a situation where the clueless, those that are bereft of ideas, who know nothing about the real business of legislature or governance, are the ones ruling and lording over the intelligentsia?
The German philosopher, Yogens Hevamas once said that “Modernity is about public sphere and the quality of conversations that go on”.”No wonder the country is where it is today.
- Matthew Ige,
Bauchi.
-
Reps set to approve N208.8b virement
The House of Representatives is set to approve the request for virement of N208.821 billion in the Appropriation Act 2016.
This follows the submission of the report of the House Committee on Appropriation at plenary yesterday.
While the requested Special Intervention in Recurrent Expenditure was N167,113,304,018 that of Capital was N39,208,367, 476.
The request was sent to the Hon. Mustapha Dawaki- headed committee on Appropriation November 16 for further legislative inputs.
While submitting the report yesterday, Dawaki said the committee had met with relevant stakeholders.
“The affected MDAs justified the need for intervention and approval of the virement. The Committee observed that there are other areas of critical needs with potential for developing and stimulating the economy and for which additional funds could be be provided through virement from the Special Intervention Programme,” he said.
The committee report showed a virement request from Service Wide Vote ( SWV) for Public Service Wage Adjustment PSWA-N71.8 billion; SWV to Contingency-N1.2billion; SWV to Margin for Increase in Cost (MIC)-N2 billion; Ministry of Interior to Cadet feeding- Police Academy, Wudil, Kano-N932.4 million; SWV to Amnesty Programme-N35 billion; SWV to Internal Operations of the Armed Forces- N5.2 billion; SWV to Operation Lafiya Dole-N13.9 billion.
Others are Ministry of Youths and Sports Development, NYSC-N19. 792 billion; Ministry of Foreign Affairs, Foreign Missions-N16.3 billion); Federal Ministry of Education: augmentation of Meal/ Subsidy/ Direct Teaching & Lab Cost – N900 million; and Statutory Transfer to Public Complaints Commission-N2.5 billion.
In the capital component of the virement are the Ministry of Defence, Nigerian Airforce- N12.7 billion; Capital Supplementation: Presidential Initiative for the Northeast-N1.5 billion; and Payment of local Contractors Debts/ Other Liabilities-N25 billion.
However, there was confusion in the manner of presentation of the report of the Committee in the Order Paper as it stated that the report which came via a motion was titled: “Receipt and Approval of the request for the virement of funds in the Appropriation Act, 2016.”
The motion was unanimously passed by members when it was put to vote by the Speaker, Hon. Yakubu Dogara.
But the Chairman of the Rules and Business Committee, Hon. Orker Jev and the Minority Leader of the House, Leo Ogor cleared the air saying the request still has to be considered in the Committee of Supply before it is finally approved by the House.
The Spokesman of the House, Abdulrazak Namdas also said in spite of the virement coming as a motion and its subsequent passage, it will still be considered by the whole House before approval.