The Nation Newspaper

Tag: Senator Udoma Udo Udoma

  • 2019 budget: FG unsure of how to bridge funding gap

    The federal government says it is caught between a rock and hard place on how to raise additional N102.84 billion to bridge the funding gap created in the 2019 budget as a result of the increase of N90.3 billion by the National Assembly.

    Minister of Budget and National Planning, Senator Udoma Udo Udoma, raised this alarm at the Public presentation of the 2019 Budget in Abuja on Tuesday.

    He lamented that the budget increase by the National Assembly has raised  budgetary deficits by N58.83 billion thus putting the government under pressure of how to fund this deficit and would likely lead to an increase in borrowings.

    According to Udoma, “NASS increased the budget size from N8.83 trillion to N8.92 trillion translating to an increase of N90.3 billion. This resulted in an overall increase of N58.83 billion in deficit.

    Inexplicably, NASS reduced the proposed borrowing from N1.649 trillion to N1.605 trillion thus creating an overall unfunded deficit of N102.83 billion. To fully fund the budget, the level of borrowing may therefore have to increase.”

    The federal government said it is expecting to generate total revenues of N7 trillion to fund the 2019 budget; comprising N3.69 trillion from oil revenues and  N3.31 trillion from non-oil revenues, while the deficit of N1.92 trillion would be financed mainly by borrowing N1.605 trillion split equally between the domestic and foreign markets.

    The 2019 budget was signed by President Muhammadu Buhari on Monday with an expenditure profile of N8.92 trillion, which is N90.3 billion higher than the proposed N8.83 trillion budget sent to the National Assembly by the Executive on December 12, 2018.

    Udoma noted that allocations to some executive projects on critical appraisal and linked to the ERGP were reduced and a large number of new projects mainly constituency type projects were introduced.

    The minister said the presidency would engage with the 9th National Assembly once it is constituted to address the budgetary quagmire.

    Key assumptions and macroeconomic framework of the 2019 budget:

    Oil production:   2.3mbpd. The government has projected an ambitious 2.3 million barrels per day crude oil production; Udoma assured that President Buhari has directed the NNPC to take all the possible measures to achieve the target.

    Other key assumptions include crude oil benchmark of $60/barrel; Exchange rate of N305/$1; GDP growth of 3.01 per cent and inflation rate target of 9.98 per cent.

    Where is the money going?

    The 2019 spending expenditure is expected to be N8.92 trillion

    Recurrent non-debt expenditure is pegged at N4.07 trillion; Ministries Department and Agencies (MDA’s) capital and capital supplementation is N2.09 trillion; while debt service at N2.14 trillion, is 31 per cent of expected revenues.

    Capital expenditure, inclusive of transfers GOEs capital and project-tied loans as of percentage of total FGN expenditure is 31 per cent.

    Udoma noted that “the 2019 Budget seeks to continue the reflationary and consolidation policies of the 2017 and 2018 Budgets respectively, which helped put the economy back on the path of growth. On the expenditure side, allocations to Ministries, Departments and Agencies (MDAs) of Government were guided by the three core objectives of the ERGP, which are, (i) Restoring and Sustaining Growth; (ii) Investing in our People and (iii) Building a Globally Competitive Economy. As with 2016, 2017 and 2018 Budgets, the 2019 Budget has been prepared on the Zero Based Budget (ZBB) Principles.”

    The minister revealed that President Muhammadu Buhari has directed “the Ministry of Finance, working with all the relevant authorities, to take action to liquidate all recovered, unencumbered assets; given the improved oil prices and production levels, Nigerian National Petroleum Corporation (NNPC) is to immediately commence the recovery of all outstanding obligations, including those due from Nigerian Petroleum Development Company (NPDC) (a subsidiary of NNPC), which it had agreed to pay since

    2017. Finally, amongst other revenue generating initiatives, Mr. President has directed that work should be concluded on the deployment of the National Trade Window and other technologies to enhance Customs collections efficiency.

    With regards to the performance of the 2018 budget, Udoma stated that “the overall revenue performance is only 55 percent of the target in the 2018 Budget partly because some one-off items such as the N710 billion from Oil Joint Venture Asset restructuring and N320 billion from revision of the Oil Production Sharing Contract legislation/terms are yet to be actualized and have thus been rolled over to 2019. Of the total appropriation of N9.12 trillion, N6.938 trillion was spent. This represents 79% performance.”

    Some of the projects captured in the 2019 budget are:

    Transport

    N78.22 billion Counterpart funding for Railway projects including: Lagos-Kano (Ongoing); Calabar-Lagos (Ongoing); Ajaokuta-Itakpe-Aladja (Warri ) (Ongoing); Port Harcourt- Maiduguri (New); Kano-Katsina-Jibiya-Maradi In Niger Republic (New); Abuja-Itakpe and Aladja (Warri)-Warri Port And Refinery; Including Warri New Harbour (New); Bonny Deep Sea Port & Port Harcourt and other Rail Projects; N941.14 million for construction of Terminal Building at Enugu

    Airport: N12 billion for construction of Second Run-Way at Nnamdi Azikiwe International Airport Abuja.

    Works: About N258.41 billion for the construction and rehabilitation of roads in every geo-political zone of the country, such as, Counterpart Funding for the Dualization of Makurdi – Enugu Road; Counterpart Funding for the Dualization of Akwanga – Jos – Bauchi – Gombe Road; Reconstruction of the Outstanding Sections of Benin – Ofosu – Ore – Ajebandele – Shagamu Expressway; Construction of Bodo – Bonny Road; Pavement Strengthening and Asphalt Overlay of Ajebandele – Ijebu Ode – Shagamu Road; Construction of Oju/Loko – Oweto Bridge to link Loko and Oweto; Dualization of Ilorin – Jebba – Mokwa/Bokani Junction Road; Kano – Maiduguri Road (Various Sections); Abuja – Lokoja Road (Various Sections); Dualization of Obajana Junction to Benin (Various Sections); Lagos – Shagamu – Ibadan Dual Carriageway; Early Works for the Construction of 2nd Niger in Anambra and Delta states.

  • Minister: high population reduces impact of economic growth

    Nigeria’s rising population is hindering the impact of economic growth, Minister of Budget and National Planning Senator Udoma Udo Udoma has said.

    At a news conference in Abuja, Udoma said the Federal Government was working hard to enhance economic growth to meet the needs of the rising population.

    “We have a lot more work to do because our population is growing at about three per cent. So, unless we are growing at more than four per cent, we will not really be able to feel the impact.

    “So, that is why we (the government) have to work even harder to get growth at the level which we want,” Udoma said.

    The minister stated that government needed to work much harder in the area of agriculture, which is the economy’s mainstay and where over 20 per cent of the Gross Domestic Product (GDP) comes from.

    “It is also important that we work hard on issues that have to do with oil production, because we have to fire on all the indices,’’ he added.

    Sen. Udoma attributed the reduced GDP growth in the second quarter to insecurity in the agricultural belt and the decline in oil production.

    He said the government was, however, working hard to resolve the challenge of insecurity to allow free movement in the country.

    “We are, of course, concerned now with the flooding, a natural phenomenon, and we are also seeking to address the problem.

    “The good news is that non-oil sector actually has been growing; the second quarter was 2.05 per cent and so we are encouraged by that growth,” Udoma stated.

    On the Economic Recovery and Growth Plan (ERGP), the minister said the government would continue to work hard to ensure it achieved the objectives of the plan as it was the focus of President Muhammadu Buhari’s administration.

  • FG targets $25bn investments from economic laboratories

    FG targets $25bn investments from economic laboratories

    The Federal Government ( FG ) is targeting $25 billion investments from the proposed economic laboratories in the country.

    The Minister of Budget and National Planning, Senator Udoma Udo Udoma, disclosed this to State House correspondents at the end of the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    He said the labs would be launched in March, adding that all the economic indices are positive following the ongoing implementation of the Economic Recovery and Growth Plan (ERGP).

     

  • 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.

  • Adeosun, Udoma to face senate over 2017 budget implementation

    Adeosun, Udoma to face senate over 2017 budget implementation

    • As Saraki urges senators to stand for Nigeria’s unity

    Finance Minister, Mrs. Kemi Adeosun and her Budget and National Planning counterpart, Senator Udoma Udo Udoma have been invited to brief the Senate on the implementation of the 2017 budget.

    Senate President, Abubakar Bukola Saraki disclosed this Tuesday in his welcome address to senators.

    The upper chamber resumed plenary Tuesday after about two months recess.

    Saraki said that the invitation of the two ministers became necessary in order for senators to be abreast with the level of implementation of the 2017 budget.

    The Senate President also asked senators to always stand for the unity and indivisibility of the country as well as condemn in the strongest term all forms of violence.

    Saraki said: “By the first week of October, we expect to begin the review of the implementation of the 2017 budget. To set the stage for this, we expect to invite the Ministers of Finance and Budget Planning to come and brief the Senate on implementation so far. Nigerians want to see a more significant improvement in the level of implementation of the budget this financial year. Let me therefore use this opportunity to call on all our standing committees to begin the process of putting together their oversight plan for a close and proper review of the performance of the 2017 Budget. In the same token, we must remind ourselves of the initiative we started and for which we have significant stride – that is, the Made in Nigeria initiative. It is time to enter the next stage of this initiative; the oversight of implementation to ensure that the policy yields expected gains.

    I will like therefore to see the committees demonstrate proactivity and readiness to engage government to ensure that at least a significant portion of our annual budget is fully dedicated to local procurement. All committees of the Senate must be involved in this and find better channels to engage our people and enable feedbacks. However, for these efforts to be successful it is required that we maintain peace and political stability. Hence the need for all of us to fight to keep Nigeria united and prosperous. 

    “Distinguished colleagues, a house divided against itself will not stand. More than ever before, we need to stand for the unity and indivisibility of our country. We must condemn in the strongest possible terms all forms of violence as a form of engagement. The Constitution and laws have laid down tools and procedures for us to push through our interest as all democratic nations do. Our nation is blessed with exceptionally talented and beautiful people, we are collectively strong and indomitable and it is time for all of us to stand up for our nation. Our dream of a virile nation must keep us motivated and this dream is already at the horizon.”

    The Senate President noted that they have in the last two sessions of their term devoted enormous time, working hard on critical legislation, some with historical essence and others with relatively high-level implications for enhancing the welfare of Nigerians and putting food on their tables.

    He expressed happiness that some of the bills which has since become law have already started yielding expected gains.

    “This is especially so with the Secure Transactions in Movable Assets Act, with increased lending to private sector. We expect more to come. Our ultimate aim will be, inclusive growth, full employment for our people and frameworks that enable our young people to run viable startups,” he said.

    Saraki continued: “Distinguished colleagues, as a firm believer that economic security is first and most important security we can offer our people, it is the apparent inadequacy of this security that is at the heart of the general disaffection of our people towards government. We have done this with the belief that with less hunger on the street; with more of our people gainfully engaged; insecurity will be significantly reduced and our economy revamped. In this period, I expect us to conclude work on the National Transport Commission Bill, and the National Road Funds Bill, the Petroleum Industry Fiscal and Host Community Bill which are pending. It is my hope that we shall conclude work quickly on the Bank lending rate reduction initiative and the National Payment Systems Bill.

    “As we continue to take action to strengthen our economy, let me use this opportunity to congratulate all Nigerians for working together to get us out of recession. While we congratulate ourselves for exiting the recession, it is important that we don’t rest on our oars as this is not an end in itself. There is a lot of work ahead. Our aim is to see our economy create millions of new jobs and see growth rates of 7% or more. This is why the implementation of the 2017 budget is crucial.

    “Distinguished colleagues, as leaders, closest to our people, we must rededicate ourselves to the values we have institutionalized in this chamber. In this chamber, we are first and foremost, Nigerians. Yes, we are Igbos, Yorubas, Hausas, Fulanis. Yes, we are Muslims, Christians and traditional worshipers. But we must in all our conversations and decisions continue to be first and foremost Nigerians and as Nigerian citizens be our brothers’ keepers. Too many of our youths, too many of our families from the South to the North need a lifting. Our job is to help government give them a hand and ones again make them feel great again being Nigerians. This is our mission.

    “As we work to even make our Constitution better, it must be remembered that Constitution review is a continuous process which we must undertake with the vision of the future in our minds. The process we have already will continue in earnest with the meeting of the speakers of the various state Houses of Assembly and the National Assembly with a view to moving forward with the process. As promised, we will revisit and consider areas of the Constitution we believe will further strengthen our federation and enable our collective dream for a more prosperous Nigeria.

     “In the fight against corruption, aside the bills we have passed, it is important that we also sharpen up our oversight tools to ensure that government remains accountable always. However, I urge us all to more than ever, operate above board ourselves. In the last two years, we have successfully exposed numerous cases of corruption in our agencies and officers of government and as a result saved government enormous amount of public resources. This is what Nigerian people expect of us and we must continue to deliver on this. We must not make the mistake of resting on our oars. I say this to encourage you to keep up with the good works of exposing corruption as you have been doing so far. Yes, like Senator Isah Hamma Misau who had the courage to expose deep rooted institutional corruption, you will be attacked, blackmailed and insulted but, unlike any former Senate before this, we will not bow or be intimidated.

     “Distinguished colleagues, our focus on interventions critical to our national development will continue in this session. We will be interacting with stakeholders with the aim of repositioning our education sector and the health sector especially with the health insurance subsector as key primers of the economy. The major direction will be to expand access to basic education and health, incentivize investment in these critical sectors and find lasting solutions to issues of strikes and interruption in these sectors.

     “Dear colleagues, we are all witness to the revolutionary growth of innovative works and remarkable fits Nigerians both in the entertainment industry and software development are making across the globe. However, their ability to fully harness and reap the fruits of their effort continues to be hampered by our intellectual property regime which is yet to be reformed to meet with today’s digital realities and opportunities. We are determined to contribute our quota to make their lives easier and better by initiating and paying close attention to our intellectual property (IP) rights frameworks.

     “Distinguished colleagues, a lot has happened in our nation within the last few weeks especially with the floods. Let me take a moment to commiserate with all Nigerians who may have been affected by the recent floods. Our hearts and prayers are with you at this period.

    “On a salutary note, I am happy to report to you distinguished colleagues that while we were away, we also took note of some of the strides Nigerians have been making. We congratulate our women on the wining of the African Basket Ball Championship. We also congratulate our Super Eagles on their journey so far for the world cup qualifiers and we will continue to support and encourage them.

    “Before, I conclude this speech, let me on another winning note and on your behalf welcome Mr. President who has acknowledged his return to office through an executive communication earlier within the period of our vacation back to the saddle. We pray that the almighty Allah will continue to grant him full restoration.”

  • Economy: Buhari meets CBN Governor, Finance, Budget ministers

    Economy: Buhari meets CBN Governor, Finance, Budget ministers

    For about two hours Monday, President Muhammadu Buhari met with the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, Finance Minister Mrs. Kemi Adeosun and her Budget & National Planning counterpart, Senator Udoma Udo Udoma.

    Their discussion centered on the state of the economy, including the implementation of this year’s Appropriation Act and preparation for next year’s estimates, among others.

    Buhari, who returned penultimate week from the United Kingdom (UK) after a 103-day medical vacation, expressed delight over the improving economy.

    The CBN chief and the ministers took turns to brief the President, according to statement by Buhari’s Special Adviser on Media & Publicity, Mr. Femi Adesina.

    The statement reads: “For almost two hours, President Muhammadu Buhari, Monday, received briefing from the Minister of Budget and National Planning, Senator Udoma Udo Udoma, the Minister of Finance, Mrs. Kemi Adeosun, and Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, after which a delighted President declared that he was pleased with the progress being made on different fronts.”

    According to the statement, the ministers and the CBN governor updated the President on the improving state of the economy, the implementation of the 2017 Budget, the preparation for the 2018 Budget, revenue strategies, combined cost reduction and debt management.

    They also discussed monetary policy strategies and their economic impact.

    Reminding managers of the economy that reviving the economy was one of the major planks that his All Progressives Congress (APC) party based its campaign, the President expressed gladness that things were looking up after two years in the saddle.

    Buhari urged them not to rest on their oars, renewing his administration commitment to bring sucour to Nigerians across all walks of life.

  • 2017 Budget: FG to release N350bn in first tranche

    2017 Budget: FG to release N350bn in first tranche

    In conformity with plans for targeted release of funds under the 2017 national budget, the Federal Government is about to release N350 billion to Ministries, Department and Agencies ( MDAs) for towards execution of capital projects under the 2017 budget, Minister of Finance, Mrs. Kemi Adeosun has said.

    Speaking during an interactive session that preceded the official  public presentation of 2017 Appropriation Act organized by the  Budget Office and Ministry of Budget and National Planning in Abuja on Monday, Adeosun stated that after a scheduled cash-plan meeting, the Federal Government is to release the N350 billion and funds for other key projects and initiatives.

    At the event where the Minister of Budget and National Planning, Senator Udoma Udo Udoma gave details of the national budget, the Minister of Interior, Abdulrahaman Danbazzau   later told newsmen of plans to form a special squad that would tackle the challenges posed by herdsmen.

    Giving details of plans for the implementation of this year’s national budget, Senator Udoma stated that targeted funding of projects would be done with the Project-Based Release System in order to curb waste of public funds by MDAs while evidence of compliance with the Bureau of Public Procurement Act is now part of compulsory requirements before approval of any capital release.

    Also, all MDAs have been prohibited from unilateral endorsement of any foreign currency denominated contract without the approval of the Ministers of Finance and that of Budget and National Planning.

    Udoma who said that the 2017 budget would run from this month to  June next year also stated that the Federal Government would strengthen its monitoring and evaluation framework to improve physical inspection and impact assessment of projects and programmes implemented by MDAs .

    However, consultations are being made between the executive and the National Assembly towards going back to the January to December implementation of budgets with effect from next year’s budget.

    The 2017 budget has an expenditure outlay of N7.44 trillion, representing an increase of 22.8% over the 2016 budget provision of N6.06 trillion.

    Statutory transfers make up N434.41 billion ,  debt service of N1.66 trillion; sinking fund to retire certain maturing bonds is N177.46 billion.

     

    Also, non-debt recurrent expenditure is to take N2.99 trillion while capital expenditure, inclusive of statutory transfers has N2.36 trillion.

    The budget’s overall projected budget fiscal deficit is N2.36 trillion, which is about 2.18% of GDP – a point which the Minister described as being well within the 3%  stipulated threshold.

    The budget includes recurrent non-debt expenditure of N2.99 trillion made up of: Personnel costs – N1.88 trillion (63%) overhead – N219.84 billion (7%), services wide vote pensions – N89.98 billion (3%) Consolidated Revenue Fund Pensions – N191.63 billion (6%).

    According to Udoma, the 2017 budget will be financed “mainly by borrowings which have been projected at N2.32 trillion. Of this amount, N1.07 trillion (46% of this borrowing) is intended to be sourced externally, while N1.25 trillion will be sourced domestically. The debt service to revenue ratio is projected to be about 32.7% in financial year 2017” .

    “In terms of implementation of the budget, we are making strenuous efforts to find the resources required. We are challenging our revenue generating agencies, particularly the FIRS and Customs, to improve their efficiencies and broaden their reach so as to achieve the targets set for them in the 2017 budget”.

    “Most importantly, we will strive to maximize the revenues we can generate from the oil and gas sector as it is clear that the foreign exchange generated from the sector is critical for our plans to diversify to the non- oil sectors. While we are introducing creative measures to improve on the efficiencies in that sector to increase Government’s take, we are also engaging more extensively with the communities and people of the Niger Delta to minimize disruptions to oil production”.

    “We are also working on the ERGP Implementation Plan (ERGP-IP) which will  guide the implementation  of the 2017 budget as well as other budgets over the medium term. It is my expectation that as we remain strategic and bold in our implementation process we will achieve the objectives set out in the ERGP”, Udoma stated.

    He also emphasized Federal Government’s concerns over the prevalence of abandoned Federal projects all over the country, adding that government hopes to tackle this through the strengthening of its monitoring and evaluation· framework· to improve· physical inspection· and impact· assessment· of projects and programmes implemented by MDAs .

    “We are worried and concerned about the number· of abandoned capital· projects scattered in their thousands throughout the country, which we inherited from previous administrations.

    “We know· that you can’t continue· doing things the same way· and expect· different result, so we have to do things differently.

    “We need to have· more targeted releases; we have to look at the projects which are important and can easily be completed.

     

    “The ministers are working together to ensure· that over time, we concentrate our resources on completing important projects, so that we have maximum impact,, ’’ he said .

    Officials at the public presentation of the 2017 Appropriation Act include the  Minister of Interior Abdulrahaman Danbazzau, Minister of State for Budget and National Planning Mrs. Zainab Ahmed, Director General, Budget ,Mr.Ben Akabueze ; Minister of Foreign Affairs  , Geoffrey  Onyeama and the Minister of Health, Dr.Isaac Adewole.

    Meanwhile, the Minister of Interior, Abdulrahaman Danbazzau   explained that the 3, 000 strong special squad being constituted to address the menace of herdsmen would comprise personnel from the National Security and Civil  Defence (NSCDC).

    Dambazau stated that the special unit is to be saddled with the task of protecting the public against herdsmen attack.

    He said the idea of having such important unit was mooted some months ago stating that, about 3,000 NSCD personnel had been selected to undergo special training.

    He also expressed his conviction that many of the herdsmen threatening the peace and order within the country are from other countries, especially within the ECOWAS sub-region.

    According to Dambazau, Nigeria and other countries that are signatories to the ECOWAS protocol which guarantees free movement of citizens have a responsibility to find ways to monitor the movement and activities of itinerant herdsmen.

     

  • Budget 2017: Federal Govt to raise N2tr bonds to pay off contractors

    Budget 2017: Federal Govt to raise N2tr bonds to pay off contractors

    The Federal Government plans to raise over N2 trillion bonds to pay off contractors in 2017 budget.

    Addressing reporters in Abuja yesterday during the 2017 budget breakdown, Budget and National Planning Minister, Senator Udoma Udo Udoma said “to address contractors’ liabilities the Federal Government intends to issue over N2 trillion worth of bonds to clear outstanding contractors’ liabilities.“

    These bonds, he said would have a 10 -year maturity and the amortisation is expected to begin in 2018.

    With regard to existing liabilities on bonds which were issued to contractors by past administration , Udoma stated that government has set N177.46 billion aside in the budget as a “sinking fund to retire the maturing bonds. “

    The thrust of the budget Udoma said “is to partner with private and development capital to leverage and catalyse resources for growth. Much of the capital provision is directed at those projects which will facilitate economic growth, diversification, competitiveness, ease of doing business, jobs and social inclusion and improved governance and security.“

    Udoma described the budget as an infrastructure budget. He said:  “N1.047 trillion is dedicated to key infrastructural spending , made up as follows: Power, Works and Housing-N529billion; Transportation-N262 billion; Special Intervention Programmes-N150 billion; Defence-N140 billion; Water Resources-N85 billion; Industry, Trade and Investment-N81 billion; Interior-N63 billion; Education-N50 billion; Universal Basic Education Commission-N92 billion; Health-N51 billion; Federal Capital Territory-N37 billion; Niger Delta Ministry-N33 billion; Niger Delta Development Commission-N61 billion; and Agriculture- N91 billion.

    Udoma highlighted some of the new initiatives in the budget to include: a new Social Housing Programme of N100 billion provided for under a new Social Housing Programme targeted at a N1 trillion fund; Special Economic Zone Projects of N50 billion to be set up in each of the geo-political zones to drive manufacturing/exports; Export-Expansion Grant (EEG) of N20 billion voted for the revival of EEG in the form of tax credit and recapitalisation of Bank of Industry (BoI) and Bank of Agriculture (BoA) with N15 billion to support the development finance institutions to support Micro , Small and Medium Scale Enterprises (MSMEs).

    Some of the projects to be executed in the budget include:N20 billion Rural Electrification projects in federal universities; N18.7 billion as counterpart funding for the construction of 3,050 megawatts (Mw) Mambilla hydropower project; N 7.12 billion for the completion of power evacuation facility for 400Mw Kashimbila hydropower plant.

    Under housing, there is N41 billion Federal Government National Housing Programme nationwide, and for works,  over 65 roads and bridges construction and rehabilitation projects across the six geo-political zones of the country; N20 billion nationwide intervention fund for roads; N31.5 billion for the rehabilitation/reconstruction and expansion of Lagos–Shagamu – Ibadan dual carriageway sections I & II in Lagos and Oyo states.

    For education, the Federal Governmen budgeted N5 billion for the provision of security infrastructure in 104 colleges (perimeter fencing, solar street light, solar powered motorised borehole and close circuit television (CCTV) .

    Under transportation,  N213.14 billion will be for various railway projects (Lagos-Kano, Calabar-Lagos, Kano- Kaduna, Ajaokuta-Itakpe-Warri , Kaduna-Idu)/counterpart funds and other rail projects; N3.03 billion for the construction of terminal building at Enugu airport; N2.08 billion for airside rehabilitation of Abuja airport and N2.47 billion for the construction of an inland river port and supply of cargo handling equipment at Baro, Niger State.

    For health, N11.72 billion has been earmarked for joint venture investments in tertiary institutions with Nigeria Sovereign Investment Authority; N7.65 billion for procurement of vaccines and devices and N6.46 billion for Global Fund and GAVI counterpart funding.

  • Senate faults Buhari’s MTEF

    Senate faults Buhari’s MTEF

    …Says proposal ‘empty’

     

    Barely two days after it rejected President Muhammadu Buhari’s bid to borrow $29.96 billion, the Senate Thursday faulted the president’s 2017 to 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

    The upper chamber described the fiscal document which is a prelude to the presentation of the 2017 budget as “completely empty” not worthy of its consideration.

    Senate Leader, Senator Mohammed Ali Ndume, who tore the document into shreds, drew the attention of the Senate to a publication where the Minister of Budget and National Planning, Senator Udoma Udo Udoma reportedly blamed the National Assembly for the inability of the Presidency to present the 2017 budget in October 2016 as promised.

    Ndume who relied on Order 42 and 52 of the Senate Standing Rules, prayed the Senate to resolve to call Udoma to order.

    He noted that it was unfortunate that the Presidency had started once again the blame game that rubbished the 2016 budget.

    He said that it was wrong for the Presidency to give Nigerians the impression that the National Assembly was responsible for the avoidable delay in presentation of the 2017 budget especially when it was obvious that the MTEF submitted to the National Assembly was empty.

    The Senate Leader noted that when the leadership of the Senate discovered that the MTEF was empty, Udoma was invited to brief the leadership on grey areas of the MTEF/FSP on Tuesday.

    He said that the Senate leadership was stunned when Udoma failed to honour the invitation.

    He also said that the minister failed to submit vital documents the Senate requested from him.

    The Senate Leader who displayed a copy of the MTEF repeatedly said furiously,“ this document is empty, it is completely empty and you cannot build something on nothing.”

    Ndume said, “The report with the headline which says, “Budget 2017: Blame National Assembly for failure to meet to meet October target”.

    “The Minister of Budget and National Planning Udoma Udoma stated that the suspension of the debate of the MTEF/FSP which lays the foundation for the budget has stalled the Ministry’s plan to transmit the 2017 budget to the National Assembly.

    “As the Leader of this Senate and I am responsible for presenting communications, bills from the Executive. You will recall that we received the MTEF on 30th September. Instead of submitting it according to law not later than 1st of September, that is not even the problem.

    “I went through and the copies have been circulated. I talked to some experts. Even in this chamber, we have people that you can call experts. If you look at this document that they call MTEF, it is empty. And it doesn’t contain anything. If you have nothing how do you consider nothing?

    “Going through and knowing that it is empty, on October 19, 2016 I wrote to the Minister of Budget and National Planning. I crave your indulgence to highlight some of the contents and in the third paragraph, I stated: “To enable the Senate objectively review the MTEF from holistic perspective, we deem it necessary to invite you to a meeting to brief the leadership of the Senate on Tuesday 1st November. The minister failed to turn up.

    “Before then, I said you are requested to please send the following documents ahead of the meeting because that is what will make us have something to consider: draft copy of Medium Term Development Plan upon which the 2017 to 2019 MTEF is founded.

    “Secondly, I requested that a comprehensive report on the implementation of 2016 budget as of third quarter. And thirdly, fiscal rates taxes, charges etc used to derive the projected revenue.

    “Finally, a report on the structure, composition of the debt, funding, sources, how the borrowed funds are to be spent as well as repayment plan and schedule.

    “Up till now, there is no communication to that.

    “Finally, I have a copy of the request for approval of the Federal Government 2016 to 2018 external borrowing plan, which was thrown out last.

    “This is the document that we received. The first paragraph says: “I wish to refer to the above subject and submit the attached draft of Federal Government 2016-2018 External Borrowing (Rolling) Plan for consideration and early approval by the National Assembly to ensure prompt implementation of the projects”.

    “I don’t know whether the Senate President has the attached document that you did not circulate to us. But as far as I’m concerned there is no attachment here.

    “We cannot afford to start the 2017 budget process with this blame game. This Senate is Nigerian Senate. We have the opposition that is co-operating with us and we have the majority in this Senate.

    “So, it is not like we are working against the government but we know what we are doing. And we should do it right. When they bring nothing and we ask for something so that we will do it properly, they run to the newspaper to start blaming the National Assembly.”

    Also a copy of the letter dated October 19, 2016, and signed by the Leader of the Senate, Senator  Ndume, requested Udoma to submit some documents before the scheduled date of briefing the Senate leadership.

    Senate President, Abubakar Bukola Saraki, who appeared not to have found the unfolding development funny, informed the Senate that he personally called Udoma over the issue.

    Saraki said that the Minister has denied blaming the National Assembly for the delay in presenting the 2017 budget.

    He said that the Senate should be mindful of issues that could breed controversy ahead of the presentation of the 2017 budget.

    Saraki said, “I saw this article too. I had taken up the Minister and he denied the article. He said he was going to debunk it. Be that as it may, I think the matter should not be stressed.

    “The Leader has made the point that this issue of blame game is totally unnecessary. And if he (Udoma) said that he is withdrawing, that means he has said it as well that the National Assembly is not responsible for any delay.”

    Deputy Senate President, Senator Ike Ekweremadu, assured that the National Assembly was ready to receive the 2017 budget from the Presidency any day.

    Ekweremadu said, “Now that the statement has either been denied or withdrawn, we need to tell Nigerians the truth. We are here on a full job. We are ready to take the budget presentation anytime. In doing so, the executive must be reminded that everything must be done right. All arms of government must live to its responsibility. The issue of blame game should be put behind us.”

    Senate spokesperson, Senator Aliyu Abdullahi on his part, wondered “if this government is not padded with people who want to frustrate the government.”

    Senator Abdullahi also warned about the danger of starting the 2017 budget with controversy.

  • No plan to sell any asset now, says FG

    No plan to sell any asset now, says FG

    The federal government Tuesday said it has not taken any decision to sell any national asset.

    Minister of Budget and National Planning, Senator Udoma Udo Udoma appealed to those opposed to the planned sale of some national assets to exercise patience with the government “as the government is yet to decide on assets sale in its stimulus package.”

    Udoma made the disclosure in Abuja at the 57th Annual Conference of the  Nigerian Economic Society (NES) where he stated that the idea of selling national assets “is just a proposal within the stimulus package of the federal government to scale up revenue but is yet to be finalised or even agreed on.”

    The budget and national planning minister said government will consult widely and hear views on the cost and benefit of the planned sale before any such decision will be made.

    He said the administration has several packages and plans that will ensure that Nigeria comes out of the current recession soon and stronger. One of such packages he noted is the stimulus plan to borrow from the World Bank, African Development Bank (AfDB) and the China Exim Bank.

    Udoma said that the stimulus package was being worked upon and was yet to be finalised, adding that to achieve this speedily “we are working to fast track procedures through presidential directives and legislation and I want to emphasis that notwithstanding the current economic challenges we face, we are not discouraged at all and this is a crisis we must not waste.”

    The minister lamented that Nigeria’s foreign reserves had shrunk from $26.51 billion from the second quarter of 2016 to $24.74 billion in September.

    Udoma said that government was working on a programme with the private sector to launch made in Nigeria campaign. He said the intent of the programme was to encourage more production and consumption of made in Nigeria goods and services.

    According him, “we believe that with more patronage Nigerian producers will be encouraged to improve the quality of their products. We should encourage the branding of Nigerian products by self-regulatory industry bodies such as wine makers have in France. Made in Nigeria should become a badge of quality.

    The minister added that “as the quality of our goods and service improve, both local and international demand for them will increase and high local demand would give Nigerian producers the platform to explore the export market.

    He said one of the fastest routes to grow the economy and create jobs for teeming population was by pursuing export-led growth. The Minister said that this strategy holds high promise for adding to our foreign reserves and further stabilising the Naira.

    He urged Nigerians to “see this crisis as an opportunity for us as a country to make those major structural changes needed to change this economy for good. We should use this crisis to implement the reforms needed to unlock the economic potentials of the non-oil and high employment sectors.”