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2018 Budget: Financial Experts Want Change In Disbursement, Implementation

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Some financial experts have said the Federal Government must change its approach towards the implementation and disbursement of the annual budget for it to impact positively on Nigerians.
The experts stated this in interviews with newsmen in Lagos, yesterday while reacting to the passage of the 2018 budget by the National Assembly, six months after it was presented by executive.
Mr Emeka Madubuike, immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), who bemoaned the late passage of the budget, said implementation and disbursement were critical at the moment.
“It is not passing the budget that is the issue, the key thing is implementation. We have seen several budgets in this country but what is the impact?” Madubuike asked.
He said the country still had serious infrastructure gap, noting that proper implementation would help in reducing the infrastructure deficit for people to have hope in the country.
Madubuike called for synergy between the executive and legislature, noting that both arms were serving Nigerians.
“This distinction between the Senate and the executive is just an excuse and must be addressed in the interest of the country,” he said.
Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, said the passage of the budget would increase the tempo of economic activities and speed up recovery efforts.
Uwaleke said the increased allocation for capital projects would lift the stock of infrastructure if well implemented and spur growth.
He said the passage of the budget would reduce uncertainties in the business environment and boost investors’ confidence.
Uwaleke also expressed optimism that the capital market would react positively to the passage of the budget.
 The Chief Operating Officer, InvestData Ltd.,  Mr Ambrose Omordion, said the approval of the budget was good for the economy to boost activities and support economic recovery and development.
Omordion said the timing and upward adjustment of the budget figures were wrong considering that the budget stayed over six months before it was approved.
He called for proper monitoring of the budget to ensure effective implementation, noting that N1.5 trillion spent on infrastructure in the 2017 budget had not reflected on the economy.
Omordion said roads and power with direct bearing on the economy had remained in the worst state in spite of huge borrowing amidst rising oil prices.
According to him, the N9 trillion budget is part of preparation for 2019 elections for the executive and legislatures to do one project or the other for the people ahead of the elections.
“For the budget to make meaningful impact on the life of Nigerians and the economy, government must change its disbursement and implementation style so that project execution will be fast,” Omordion said.
He explained that the adjustment of oil benchmark price to 51 dollars per barrel against the initial 45 dollars per barrel was good considering the rallying in oil price.
Omordion said it was a good way of reducing borrowing to finance deficit budget and also to accommodate the N543 billion increment to execute their own constituency projects.
The Senate and the House of Representatives on May 16, passed the 2018 budget, raising it by N500 billion.
Both houses approved a budget that rose from N8.6 trillion to N9.1 trillion, six months after it was presented by the executive.
President Muhammadu Buhari presented the budget to a joint session of the National Assembly on Nov. 7, 2017.
Both houses of the National Assembly received the budget report of their appropriation committees.
At the Senate, the chairman of the Senate Committee on Appropriation, Mr Danjuma Goje, said the increase of N500 billion was done in consultation with the executive.
He said the increment was informed by a decision to increase oil benchmark from the proposed 45 dollars to 51 dollars.
The exchange rate of N305 to a dollar and production of 2.3 million barrels of oil per day were adopted as proposed by the executive.
Goje said the funds that would accrue from the increment would be spent on some projects already earmarked by the committee.
He said the surplus fund was spread on some ‘critical sectors’ in consultation with the executive. He gave a breakdown of how much would be spent on different sectors.
According to the report, N42.72 billion will be spent on security, N57. 15 billion on the 1 per cent vote for health as mandated by the National Health Act and N106.50 billion for the Ministry of Power, Works and Housing.
Other areas are; education, N15.7 billion, Judiciary, N10 billion and Niger Delta Development Commission (NDDC), N44.20 billion.
He added that the increment would allow for a N50.88 billion deficit reduction.
In the final breakdown, the Senate passed a 2018 budget of N9, 120, 334, 988, 225 of which N530, 421, 368, 624 is for statutory transfers as against N456, 458, 654, 074 proposed by the executive.
N2, 203, 835, 365, 699 was budgeted for debt service as proposed while N190, 000, 000, 000 was budgeted for sinking fund for maturing loans.
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Telcos Fear Shutdown As Lagos-Calabar Highway Construction Threatens Cables 

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Barely 48 hours after Multichoice alerted subscribers to a three-day technical downtime, telecommunication companies have expressed concern over possible connectivity disruptions as construction advances on the 700km Lagos-Calabar Coastal Highway.
While the DStv and GOtv owner acknowledged the anticipated impact of the ongoing Lagos-Calabar construction project on their uplink facilities, telcos have expressed broader concerns emphasising the vital role of telecommunication service and the effect of possible anticipated technical disruption.
The Lagos-Calabar coastal highway corridor serves as a crucial landing point for multiple submarine cables connecting Nigeria to Europe
The cables, including the West Africa Cable System (WACS), MainOne, Glo1, ACE, and NCSCS, are vital for international communications and data transmission in the country.
The Federal Executive Council approved Phase One of the ambitious 700-km Lagos-Calabar coastal highway project in February, entrusting the task to Hitech Construction Company Limited.
The highway project was designed to connect Lagos to Cross River, passing through the coastal states of Ogun, Ondo, Delta, Edo Bayelsa, Rivers, and Akwa Ibom, before culminating in Cross River.
The demolition of numerous properties and recreational centres in Lagos has been carried out to expedite the construction of the highway.
In the light of the developments, telcos stressed the necessity of stakeholder consultations with the Ministry of Works to address potential risks and implement robust mitigation measures.
While dialogue with the Federal Government is yet to happen, telcos have warned Hitech Construction to exercise caution to prevent damage to critical national infrastructure.
Speaking to newsmen, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed that the Ministry of Works had yet to engage the telcos on environmental impact assessment.
The ALTON Chairman said the Ministry of Works, headed by David Umahi, had engaged some stakeholders but excluded the telecom operators.
“The Ministry of Works has not approached us, and I’m unsure if environmental impact assessments have been conducted. The route is crucial for the landing of numerous submarine cables, so caution is essential.
“Some members have reached out to them, urging caution. As the Chairman of the industry, I can affirm that ALTON members were not consulted regarding the assessment of the undersea cable within that right of way”, he explained.
Adebayo revealed that some of its members had written to the works ministry on the matter over the need for a dialogue. He, however, said the body had yet to get any response.
He added that the Nigerian Communications Commission (NCC) had been engaged to facilitate talks with the ministry.
“We’ve informed the Nigeria Communications Commission about this issue, and they are attempting to contact the Ministry of Works. However, I can confirm that neither we nor any of our members were contacted. This is on record. We were not included in the stakeholder consultations, and we’re concerned about the actions being taken”, he stated.

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Vets Make Case For Massive Investments In Agric Technology 

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Veterinary doctors have tasked governments at all levels and stakeholders to drive the agricultural sector with innovative and technological investments to upscale food production and boost food security.
President, Faculty of Veterinary Medicine, University of Nigeria, Nsukka, Alumni Association, Prof Lawrence Aka, made the call in an event in Abuja, following the current excruciating hunger and hardship Nigerians are grappling with.
In the event, which was focused on “Adopting Technological Innovations in Veterinary Practice, Livestock Production and General Agricultural Practices for Food Security, Economic Growth, Poverty Alleviation, Youth Employment and National Security”, Aka noted that agriculture, which is the backbone of human civilization, is at a crossroads, particularly in Nigeria.
According to him, agriculture is faced with challenges such as climate change, population growth, and diminishing natural resources, hence the need to  reimagine and reinvent better ways to cultivate lands to improve national economy to nourish the people.
“The solution lies in innovation – leveraging technology to transform agriculture into a more sustainable, efficient, and productive sector.The subject of our discussion today is one that sits at the nexus of our survival and prosperity: ‘The adoption of innovative technology in agricultural production as a catalyst for economic growth and a pillar of national security’.
“In an era marked by rapid technological advancement, and our unique agricultural potential, agriculture remains the cornerstone of our economic stability and sustenance. Yet, it faces unprecedented neglect and challenges from climate change, population growth, resource depletion and lack of political will for its development.
“To navigate these challenges, we must pivot towards innovation and technology. This transition is not just an opportunity for growth but a necessity for our survival as a developing nation.
“There is no doubt that the current state of agriculture in our country does not match the potential it has in revamping all aspects of our existence as it relates to our economy, food security, youth empowerment, poverty alleviation and national security.
“The theme of this symposium has been chosen in recognition of the need for a diversification of our national economic agenda through an embrace of innovative and technologically-driven agricultural practices.
“Nigeria is uniquely blessed with enormous factors that positively drive abundant food production for local consumption and export.
“Unfortunately, this has hitherto been neglected to the detriment of improved economy, poverty alleviation, food sufficiency and national security hence the existing unimaginable level of poverty and youth unemployment. There is no dishonor in a country being poor.

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Aviation Experts Chat Way For Sector’s Advancement

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Experts in aviation under the auspices of Aviation Safety Roundtable Initiative (ASRTI) havae urged President Bola Tinubu to suspend taxes, tariffs and endless charges hindering development of the aviation industry in the country.
The Aviation Roundtable (ART) also called on Tinubu to initiate policies that would address airlines’ survival and growth with a view to lowering the swift increase in domestic airfares.
In a statement released at the end of its Business Meeting in Lagos, the ART President, Air Comdr. Demola Onitiju (rtd), called on the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, to constitute governing boards for the Nigerian Civil Aviation Authority, (NCAA), and other agencies in the sector.
“The ART has been a consistent advocate of NCAA’s autonomy consistent with the Act establishing it and global best practices. We do this to ensure that it is adequately  insulated from short-term political pressure.
“In the  Nigerian circumstances, the NCAA is expected to be both benign and harsh in its  spontaneous enforcement of standards and rules to retain our trust.
“In order to create a conducive environment for aviation and tourism to thrive, the ART urges the renewed hope agenda of President Bola Tinubu to initiate deliberate policies to review and suspend taxes, tariffs and charges (within a given time frame) in order to bring succour to aviation and allied businesses in Nigeria.
“Such policies should address airlines survival and growth with a view to lowering the recent astronomical increase in air fare on the domestic scene.
“The Consumer Rights Protection directorate in the NCAA  should live up to its billing in ensuring maximum comfort and compensation for the traveling public promptly where infractions are established”, he stated.

Corlins Walter

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