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FG Records N3.05trn Fiscal Deficit In Eight Months

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The Federal Government recorded a fiscal deficit of N3.05trillion in its operations between January and August this year; figures obtained from the Central Bank of Nigeria (CBN) have shown.
The 2019 budget signed by President Muhammadu Buhari had capital expenditure of N2.09trillion, recurrent expenditure of N4.05trillion, statutory transfers of N502billion, and special intervention of N500billion.
The budget also had debt service of N2.25trillion. Out of this figure, N1.7trillion was approved for domestic debts, while the sum of N433billion was provided for foreign debts.
Similarly, the sum of N110billion was approved for sinking fund to retire maturing debt obligations.
To fund the budget, the Federal Government had planned to generate the sum of N7trillion as revenue.
This is made up of N3.69trillion from oil sources, while N3.31trillion is projected as revenue from non-oil sources.
Details of the fiscal operations of the Federal Government as contained in the CBN economic report for August this year showed that the government had not been able to generate adequate revenue to meet its expenditure.
For example, the Federal Government’s retained revenue was put at N343.4billion in January while its expenditure was N868.3billion.
This resulted in a deficit of N524.9billion.
For the month of February, March and April, the Federal Government’s retained revenue was put at N318.1billion, N392.2billion and N386.2billion while expenditure was put at N1.09trillion, N532.3billion and N1trillion, respectively.
This resulted in fiscal deficits of N780.1billion, N140.1billion and N618.9billion, respectively.
For the months of May, June and July, the Federal Government based on the CBN data recorded revenue of N279.7billion, N310.6billion and N381.8billion while expenditure was put at N499.5billion, N814.5billion and N490.9billion, respectively.
The fiscal deficit during the period was put at N219.8billion, N503.9billion and N109.1billion, respectively.
In the month of August, the government’s revenue was estimated at N308.1billion while the total expenditure incurred during the period was N464.3billion.
This resulted in a deficit of N156.2billion during the period.
The report read in part, “At N464.31billion, the estimated total expenditure of the Federal Government was below the monthly budget estimate of N865.31billion by 46.3 per cent.
“It was also below the N490.87billion recorded in the preceding month by 5.4 per cent.
“A breakdown showed that recurrent and capital expenditure constituted 75.5 per cent and 18.6 per cent of the total expenditure, respectively, while transfers constituted 5.9 per cent in the review period.
“Of the recurrent expenditure, non-debt obligation was 69.3 per cent, while debt service payments accounted for 30.7 per cent of the total.
“Consequently, the fiscal operations of the Federal Government resulted in a deficit of N156.18billion, compared with the monthly budget deficit of N159.87billion.”
The Senior Economist, World Bank, Yue Man Lee, said the implications of having low revenue was that the amount Nigeria could spend on human development would be restricted.
Lee while speaking during the unveiling of a report by the BudgIT on state governments’ sustainability in Abuja said over the years, the fiscal capacity of government at all levels to generate the needed revenue to finance their operations had reduced.
She said, “The broader fiscal challenge that Nigeria faces is low revenue that constrains the budget envelop.
“This, when put in plain terms, is how much revenue that is available to spend on public service and investments in human capital.
“Nigeria is spending, and government spending as a percentage to Gross Domestic Product (GDP) is way lower than other countries at similar income per capital level. And the reason behind this is because of the exceptionally low revenue that Nigeria collects.”
Lee said with the country having revenue to Gross Domestic Product ratio of about eight per cent, there was a need to come up with measures to boost revenue.
She said the low level of government spending on capital projects contributed to low level of development outcomes.
Also, the Lead Director, Centre for Social Justice, Eze Onyekpere, said there might be a central challenge in the realisation of the revenue and funding needed to implement the 2019 budget.
This, according to him, is against the background of the revelation by the Minister of Finance, Zainab Ahmed, that only 55 per cent of the 2018 revenue projection was realised.
He said the revenue underperformance followed the trajectory in previous years where the Federal Government consistently failed to realise its budgeted revenue.

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FG Targets Production Of Locally Made Vehicles By Dec

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The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, has affirmed that Nigeria now has the capacity and materials to manufacture Made-In-Nigeria cars for local use and export.
With the enabling environment being provided by the government, she said manufacturers should be held responsible if the cars are not rolling out by December 2024.
Currently, Nigeria produces less than 10 per cent of the vehicles used in the country.
Last year, Nigeria’s vehicle assembling industry, estimated to be worth around N302billion, tanked to a new low due to increasing production costs and weakened demand for locally assembled automobiles.
According to the Manufacturers CEOs Confidence Index, activities of motor vehicles and miscellaneous assembly deteriorated further below the benchmark (50 points) from 48.6 to 46.7 points.
But speaking at the Automotive Component Manufacturers meeting in Abuja, she noted that the automobile industry is faced with both challenges and opportunities.
A statement issued last Friday by the Director of Information and Public Relations, Adebayo Thomas, said, “In a significant move aimed at fostering sustainable growth and development in Nigeria’s automobile industry, the Federal Government has issued a clarion call to all stakeholders, including manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem.
“The call comes as part of a broader strategy to enhance the sector’s contribution to the nation’s economy.”
Encouraging the stakeholders to key into the Nigerian Automotive Development Policy, the Minister said, “As far as we are concerned, the auto industry is now set to go.
“We are counting on all stakeholders to make that happen. If we do not produce made-in-Nigeria cars before the end of this year (December), it will be your fault, because I am sitting down here giving you all the assurances that this administration has created the enabling environment to make sure that the auto policy kicks off.”
Anite emphasised the need for collaboration among manufacturers, dealers, regulatory bodies, and other players in the automobile ecosystem, saying by working together, they can address challenges, streamline processes, and drive innovation.
She also urged stakeholders to maintain high-quality standards across the board, including vehicle manufacturing, safety features, emissions control, and after-sales services.
Stringent adherence to quality, she said, will boost consumer confidence and attract investment.
The minister assured all that the government would continue to encourage increased investment in research and development, adding that, innovations in electric vehicles, fuel efficiency, and alternative energy sources are critical for long-term sustainability.
On local content, she also emphasised the importance of promoting local content by sourcing materials and components locally.
By doing this, she said, the sector can create jobs, reduce import dependency, and contribute to economic diversification
In his introductory comments, the ministry’s Permanent Secretary, Nura Rimi, emphasised the significance of team action and shared vision as outlined in the Nigerian Automotive Development Policy.
He also urged stakeholders that the country “will overcome obstacles and unleash the full potential of Nigeria’s automotive component sector.”
He encouraged NADDC and other stakeholders to use the chance to form alliances, explore new areas of collaboration, and devise ways to catapult the automotive components manufacturing industry to new heights of success.
The statement added, “The government’s charge underscores the pivotal role stakeholders play in shaping its trajectory. Their commitment to sustainable practices will drive Nigeria’s automotive sector towards a brighter and more prosperous future.
“Environmental Responsibility: Stakeholders are reminded of their environmental responsibilities. Sustainable practices, recycling, and eco-friendly manufacturing processes are essential for a greener future.”

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Waive Tax On Electronic Imports, Women Engineers Appeal To Tinubu

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The Association of Professional Women Engineers of Nigeria (APWEN), Lagos Chapter, has called on President Bola Tinubu to exempt the importation of electronic components from taxation for inventive engineers.
Chairman of APWEN, Ms Atinuke Owolabi, said this a in statement yesterday in Lagos, in commenration of the 2024 World Creativity and Innovation Day, with the theme: “Step Out and Innovate”.
The Tide source reports that World Creativity and Innovation Day is a global UN Day, celebrated on April 21, to raise awareness about the importance of creativity and innovation in problem solving.
This is with respect to advancing the United Nations’ sustainable development goals, also known as the global goal.
Owolabi explained that such a measure would significantly enhance technological progress, support local innovators, and elevate Nigeria as a leading hub for innovation globally.
She stated that in a world marked by dynamic challenges and unprecedented opportunities, creativity and innovation stand as the driving forces behind progress and transformation.
According to her, women engineers recognise the critical role that innovation plays in shaping our societies and driving sustainable development.
”On this occasion, we affirm our commitment to fostering a culture of creativity and innovation within our organisation and the broader engineering community.
”Together, let us step out, innovate, and inspire the next generation of women engineers to reach even greater heights of achievement and impact.
”We believe that by stepping out of our comfort zones and embracing new ideas, technologies, and approaches, we can unlock innovative solutions to the complex challenges facing our world today,” she said.
According to her, the theme: ‘step out and innovate’, serves as a call to action for women engineers everywhere to break barriers, challenge conventions.
She noted that it would also pioneer groundbreaking solutions that would propel them toward a brighter and more sustainable future.
Owolabi disclosed that in celebration of the World Creativity Day, APWEN Lagos had inaugurated an artificial intelligence club tailored for female engineering students and young engineers.
She said that the proactive initiative aimed to inspire and equip young engineers with cutting-edge technological insights.
Th chairman said, “Additionally, we already have a 200-capacity hall to set up a resource, technology, and innovation hub to empower women and girls in engineering.
”This endeavour serves as a catalyst for encouraging aspiring female engineers to embrace innovation and stay abreast of emerging trends in the field.
”APWEN Lagos stands united in its dedication to promoting diversity, inclusivity, and excellence in engineering.
“We encourage all female engineers to seize this opportunity to unleash their creativity, explore new frontiers, and make an indelible mark on the world.”

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Pan-Igbo Group Hails Dangote Group For Reducing Diesel Price

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A pan-Igbo group, Ndigbo Unity Forum (NUF), has commended the Chairman of the Dangote Group, Alhaji Aliko Dangote, and his management for reducing the price of diesel from N1,600 to N,1000 per litre.
The Tide’s source reports that diesel is the major fuel used by heavy duty vehicles and generating sets to transport goods as well as run industries across the country.
The President of NUF, Mr Augustine Chukwudum, told The Tide’s source in Enugu, yesterday, that Dangote’s timely response to suffering masses of Nigerians, going through hell to get a meal a day, “is highly commendable”.
According to Chukwudum, Nigerians need to appreciate the patriotism of Dangote since what he has done will go a long way in reducing prices of goods, especially food stuff which has gone out of the reach of the poor.
He called on Nigerians, who wish and pray always for the betterment of the country, to appreciate and thank God for answering their prayer through Dangote’s move.
“It is clear that if Dangote Refinery starts fully and gets all the crude oil needed from Nigeria, the prices of petrol, kerosene and diesel will further reduce.
“We commend President Bola Tinubu for being a listening President and supporting the Dangote Group on our crude oil needs.
“We appeal to Tinubu to encourage Dangote by providing the company with crude oil at a reduced rate as we have been demanding,” he said.
Chukwudum said that this move and subsequent further reduction, would bring industries in comatose back to life, jobs created for unemployed youths and reduction in crime as well.
“We call on governors of oil-producing Anambra, Imo and Abia States to bring investors, who shall build refineries in each of the states to refine thousands of barrels of crude in commercial quantities,” he said.

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