Business
2015 Budget Targets N3trn Revenue, – Okonjo-Iweala
The Minister of Finance,
Dr Ngozi Okonjo- Iweala, said the Federal Government was targeting about N3.60 trillion revenue in 2015.
Okonjo-Iweala disclosed this at the public presentation of 2015 budget, last Wednesday in Abuja.
She said that the government expected to earn N1.92 trillion from oil transactions and N1.68 trillion from non-oil.
According to her, this implies a ratio of 53 per cent oil revenue to 47 per cent non-oil revenue to fund an aggregate budget expenditure of N4.36 trillion proposed for 2015 Budget.
The minister explained that the expenditure figure comprised N412 billion for statutory transfers, N943 billion for debt service and N2, 616 billion for recurrent (non-debt).
She said that N634 billion was for capital expenditure, including provision for Subsidy Reinvestment and Empowerment Programme (SURE-P).
She disclosed that the government was contemplating short and medium-term measures in expenditure, adding that the focus was on cutting “non-essential and non-developmental’’ expenditures from the budget.
“In the short term, the strategy to curb recurrent expenditure will increasingly rely on implementing the right technologies such as biometrics and digitising government payments,’’ she said.
Okonjo-Iweala also said that through the implementation of IPPIS, the Federal Government saved about N185.4 billion and weeded out 60,450 ghost workers from 359 Ministries, Departments and Agencies (MDAs), adding that more funds would be saved.
“ We intend to ramp up the work on the platforms in 2015 to improve on our transparency, efficiency and efficiency objectives while saving the much needed resources for reinvestment to benefit all Nigerians,’’ she said.
She stated that in the short-term, the government would institute measures to reduce spending which would save a total of N82.5 billion.
“On overhead expenditures, we propose cuts to International Travels and Training by 50 per cent for all MDAs, saving about N14 billion, while other provisions for Overhead expenditure have been dropped completely, saving about N4 billion.
“Administrative expenditures for Buildings, Equipment, Supplies, etc, MDAs’ provisions for the procurement of administrative supplies and equipment will be cut, saving about N5 billion.
“Procurement and upgrade of buildings were similarly curtailed, saving about N44 billion, while another N76 billion is proposed for reallocation to more impactful programmes of government in the security, health, and education sectors,’’ she said.
The minister said that the government had also commenced partial implementation of its Whitepaper on the rationalisation of agencies based on the ‘’Steve Oronsaye Report’’.
This, she said, would target savings of about N6.5 billion in the 2015 Budget from the rationalisation of some agencies, committees and commissions.
“Nevertheless, medium term measures require greater efforts to cut the cost of governance across all tiers and branches of government and this requires support from the legislature to amend laws underpinning certain agencies.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.