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Fiscal Commission Rejects $73 Oil Benchmark

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The Fiscal Responsibility Commission(FRC) has kicked against the proposal to set the 2015 budget benchmark for crude oil at $73 per barrel.
Addressing a press conference in Abuja yesterday Acting Chairman of FRC, Chief Victor Murako, said the Federal Government should be more realistic and set the benchmark at $60 per barrel.
Murako said instead of adopting the moving average as the method for arriving at the benchmark, the Federal Government should consider adopting an approach that determines savings accrueable to Excess Crude Account.
He advised the three tiers of government against depleting savings that had accrued in the ECA, adding that the times called for more savings rather than sharing what had been saved in the past.
The FRC boss said, “It should be noted that the oil slump has more than anything else, emphasised the need for more prudence and fiscal responsibility best practices on the part of the three tiers of government.
According to him, “Given the fact there may be no immediate end in sight to the oil price slump, there is need for the Federal Government to take a much lower and conservative oil benchmark price of about $60 per barrel rather than the proposed $73 per barrel to guard against all eventualities.
“While we appreciate the use of moving average of international oil price to determine the benchmark oil price in Nigeria, no time is more appropriate than now to revisit the method and come up with a more realistic approach,” he added.
He said, “Since 2008, the average savings into ECA was an average of $31.6 per barrel. The savings per barrel of oil into the ECA on annual basis were: 2008 – $42.1; 2009 – $18.9; 2010 – $30.9; 2011 – $34; 2012 – $31.8; and 2013 – $31.8. This gave an average savings of $31.6 over the six-year period.
“ The commission opines that the Federal Government should modify the moving average method of international price of oil in the determining of benchmark price to a predetermined savings accruable to the ECA. It is expected that government will consider a predetermined savings of between $15 and $30 per barrel of oil lifted,” the FRC boss said.
According to him, the benchmark price of oil should be the difference between the forecast average international price of oil and the predetermined savings into ECA.
Murako said the Federal Government would do well to plug leakages in the economy by giving due consideration to internally generated revenue, noting that all institutions should wake to their responsibilities by complying with the law and remitting their internally generated revenues as and when due.

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Obasanjo, Abdulsalami, Sultan, Others Brainstorm On Insecurity

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Rising insecurity and agitations for secession by different ethnic groups across Nigeria has attracted the attention of elder statesmen and other national leaders to a meeting in Abuja.

The meeting was organised by Interfaith Initiatives for Peace jointly led by the Sultan of Sokoto, Muhammad Sa’ad Abubakar, and Emeritus Cardinal John Onaiyekan, and the National Peace Committee chaired by Gen Abdulsalami Abubakar (rtd).

Reporters were barred from taking part in the closed-door meeting, expected to proffer solutions to the ongoing security challenges threatening the peace and unity of the country.

It was also an exploratory meeting on pressing issues of national unity, security, peace, integration, economic revitalisation and development, women and youth welfare and general progress.

Former President Olusegun Obasanjo; former Head of State, General Abdulsalam Abubakar (rtd); Sultan of Sokoto, Muhammad Sa’ad Abubakar; Ooni of Ife, Oba Adeyeye Enitan Ogunwusi; Tor Tiv, Prof Ortese Iorzua James Ayatse, Emeritus Cardinal John Onaiyekan; President General (Ohanaeze Ndigbo), Prof George Obiozor; and Afenifere leader, Ayo Adebanjo; were all in attendance.

Others sighted at the meeting are President of Nigeria Labour Congress (NLC), Comrade Ayuba Wabba; CAN General Secretary, Joseph Daramola; JAMB Registrar, Prof Ishaq Oloyede; Etsu Nupe, Yahya Abubakar; former Minister of Agriculture, Chief Audu Ogbe, among several political and traditional rulers at the meeting.

Elder statesmen, Chief Edwin Clark, also attended the event at the Congress Hall of Transcorp Hilton Hotel, Abuja, but could not participate in the meeting because he could not climb the staircase to the meeting room.

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Fighting Corruption Difficult In Democratic Setting, Buhari Laments

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President Muhammadu Buhari says fighting corruption in democratic setting is a difficult task to accomplish.

The president disclosed this during an interview with Arise Television which was televised, yesterday.

According to him, the war against corruption has not been easy for him since he became a democratically elected president six years ago.

He, however, stressed that his administration had succeeded in easing out corrupt public officials without making noise about it.

Buhari recalled that much was achieved in the fight against corruption when he was military Head of State in the early 80s “when a lot of people were sent to prisons before I was also booted out”.

The president frowned at the way and manner local government system was being managed, saying the local government administration was almost non-existent in the country.

He cited situation where state governors continued to starve the local governments of funds saying “in a situation where N300million is allocated to local government and they are given N100million is not fair”.

On activities of bandits and kidnappers particularly in the North-West and North-Central zones, Buhari said he had given the police and Armed Forces the instructions to be ruthless with bandits and vandals terrorising innocent citizens across the country.

He stated that he had told the security agencies to treat bandits and other criminals in the “the language they understand.

“Problem in the north-west; you have people over there stealing each other’s cattle and burning each other’s villages.

“Like I said, we are going to treat them in the language they understand.

“We have given the police and the military the power to be ruthless. You watch it in a few weeks’ time there will be difference.

”Because we told them if we keep people away from their farm, we are going to starve. And the government can’t control the public.

“If you allow hunger, the government is going to be in trouble and we don’t want to be in trouble.

“We are already in enough trouble. So, we warn them sooner than later you’ll see the difference,’’ he said.

On farmers/herders clashes, the president said the problem had persisted because old cattle routes and grazing areas had been violated by development, adding that those who had taken over such traditional arrangements would be dispossessed.

On the fight against insurgency, Buhari dismissed the assertion that majority of Boko Haram members were foreigners.

According to him, the majority of the Boko Haram members are Nigerians, saying this was further corroborated by Borno State Governor, Prof Babagana Zulum.

The president stated that his administration had done a lot to fight the terrorists and insurgents but the problem in the “North-East is very difficult.”

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Igboho Declares June 12 Day Of Protest, Warns Buhari

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Sunday Adeyemo, popularly known as Sunday Igboho, has declared June 12 as day of protest for Yoruba nation agitators.

The self-acclaimed Yoruba activist said the agitators will hold ‘peaceful rallies’ across the South-West region on Saturday, June 12.

Igboho, who spoke through his spokesman, Olayomi Koiki, in a live video programme aired, last Wednesday night, called on South-West governors to cooperate with the peaceful protesters during the exercise.

He warned the President Muhammadu Buhari-led administration not to attack the agitators.

He said, “Let us warn the Federal Government that if there is bloodshed this weekend, the international community is watching, if the military kills any Nigerian this weekend, it is going to be very hot.

“The Yoruba nation rally will go ahead in every part of Yoruba land and the rest of the country where it will hold.

“Red alarm will begin on Friday. People should stock up food Items from Friday night.

“We are not backing down this weekend; we are ready to take back what belongs to us.”

He also enjoined agitators to ‘fast’ on Friday.

This is coming after NANS under the leadership of its National President, Comrade Sunday Asefon, had declared June 12 as National Day of peaceful protest to call on the government to act decisively towards addressing insecurity.

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