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Buhari Presents 2020 Budget To NASS, Tuesday

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President Muhammadu Buhari will next Tuesday present the 2020 budget to the joint session of the National Assembly.
This was disclosed by the Senate President, Dr. Ahmad Lawan, yesterday.
Lawan made the disclosure in a letter from Buhari, which he read to the lawmakers on the presentation of the 2020 Appropriation Bill on Tuesday, 8th October, 2019 to the Joint Session of the National Assembly.
The reading of the letter comes after the Senate, yesterday, passed the 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) submitted to it by President Muhammadu Buhari, last week.
This followed the presentation and consideration of the report of the Senator Solomon Adeola-led Senate Committee on Finance by the Red Chamber in Abuja.
The upper chamber in the approved MTEF/FSP for 2020-2022 increased the Federal Government’s proposed expenditure for 2020 from N10.002trillion to N10,729.4trillion.
The Senate also increased the oil benchmark from $55 per barrel to $57 per barrel, representing a $2 increase.
The Senate also increased the 2020 revenue target by the Nigeria Customs Service (NCS) by N557.4billion, that is, from N942.6billion to N1.5trillion.
It, however, retained the exchange rate at N305 per dollar and oil production benchmark at 2.18mbpd as proposed in the MTEF/FSP by the executive.
The committee also recommended the adoption of N1.5trillion as the amount for new borrowing by the Federal Government in 2020, as a result of reduction of N200billion which was sourced from the increase of revenue target of the Nigeria Customs Service.
The committee further called for an urgent review and amendment to the Fiscal Responsibility Act (FRA Act) and the various laws of the revenue generating agencies to align with current realities.
This information form part of the recommendations of the National Assembly Joint Committee on Finance report on 2020-2022 MTEF/FSP which was considered by the Senate in Abuja, yesterday.
The committee’s recommendations which were approved by the Senate are as follows: “Following intensive engagement with NNPC and relevant information obtained during the session, the committee recommends the adoption of 2.18mbpd as daily production output in 2020. In view of concerted effort by NNPC and security agencies the menaces of oil theft and vandalization, the 2.18mbpd would be realizable.
“The committee recommends the adoption of $57/barrel as crude oil benchmark price for the fiscal year 2020.
“The revenue target of Nigeria Customs Service (NCS) of N942.6billion for 2020 should be increased to N1.5trillion, as a result of the performance of NSC in last nine months with three months still outstanding.
“The NCS revenue as at September stood at N1trillion against the budget figure of N969.8billion for the year 2019. The Joint Committee commends the NCS for exceeding the targeted revenue despite the global economic challenges and closure of the Nigerian borders.
“The sum of N557.4billion from the revenue increment of NCS be used to reduce borrowing by N200billion and increase capital expenditure thereby decreasing the size of the budget deficit from N1.7trillion to N1.5trillion and also increase the total capital available to MDA by N357billion, from N1.01trillion to N1.367trillion.
“The exchange rate of N305/$ should be maintained for economic stability. While more work should be done by the Honourable Minister of Finance and all economic advisers and her team on improving the economic growth by increasing the GDP and reducing the inflation rate to single digit.
“The saving on income accruing from the increase of the benchmark amounting to N172billion which represent the Federal Government portion of the $2 added to the benchmark be used to pay salaries and emolument of the proposed 30,000 new employees.
“Proper investigation be carried out on the e-collection stamp duties domicile with Central Bank of Nigeria (CBN) for the past years so as to show probity and accountability and of course increase the revenue base of the country.
“Immediate amendment of the National Assembly Act on Production sharing Contracts (PSC) with lOCs. Proper investigation be carried out on NNPC so as to ascertain the actual cost associated with the Joint Venture agreements.
“More government-owned enterprises budget be added to the nation’s budget to ensure proper checks and balances among all Federal Government agencies.
“Debt Management Office (DMO) should put more efforts and strategies in managing foreign and local debts.
“Total estimated expenditure of the Federal Government should be increased from N10.002trillion to N10.729.4trillion.
“National Assembly should expedite action on the passage of the finance bill which will be brought along with the National Budget into Law for easy implementation of the 2020 budget, most especially in the area of VAT.
“The committee calls for an urgent review/amendment to the FRA Act and the various laws of the revenue-generating agencies to align with current realities.
“The committee recommends earmarking 1 per cent of the Consolidated Revenue Fund to finance the Basic Healthcare Provision Fund to be classified as Statutory Transfer.
“The committee recommends the adoption of N1.5trillion as the amount for new borrowing as a result of reduction of N200billion which was sourced from the increase of revenue target of the Nigeria Customs Service.
“However, borrowing must be project-tied. ln borrowing, government must remain focused and ensure that it used the money to fund critical projects that will increase productivity and contribute to finance financing such debt.”
The committee in its findings observed that crude oil receipt accounted for over 50 per cent of Federal Government revenue and about 90 per cent of Nigeria’s foreign exchange earnings.
“Therefore, crude oil production and export will continue to have important implication on federal fiscal operation.
“Over the last three years crude production average 1.92mbpd, however, following consultations with stakeholders, crude oil production is estimated at 2.18mbpd, 2.2mbpd and 2.3mbpd in 2020, 2021 and 2022,” the committee said.
The committee also noted that oil prices had generally been rising since April, 2016 as Bonny Light crude oil price rose from an average of $43 per barrel in 2016 to $56.2 in 2017 and $72.1 in 2018 partly due to geopolitical tensions.
It said that 2019, Bonny Light crude oil price increased steadily from January average of $60/barrel (to) a six-year high well above $70/barrel between April and May, 2019.
“It is noteworthy, that volatility of crude all markets and fluctuating price requires constant review and forecast.
“The non-oil revenue for 2020, 2021 and 2022 is budgeted to be as follows: N1,836,693,720.000; N2,205,807,930,754 and N2,337,091,481,680, respectively,” the committee said.
The committee further said it observed during the public hearing on the 2020-2022 MTEF & FSP, that the salaries and remunerations for the proposed recruitment of 30,000 personnel in Police, Army, Immigration and civil defence was not captured.
It also said that the total VAT proposed in the 2020-2022 MTEF/FSP amounting to N23trillion can be realized only after the amendment of the finance bill is passed into law by the National Assembly.
The committee, however, frowned at the attitude of Central Bank of Nigeria (CBN) for the under disclosure of the e-collection of stamp duties.
The committee further observed that the activities of NNPC as it relates to cost of production is shrouded in secrecy, “the direct deduction of cost from revenue without recourse to relevant agencies of government is unacceptable.”
It also noted that 10 government-owned enterprises (GOEs) budget would be presented along with the 2020 National Budget
“These GOEs include FAAN, NCAA, NlMASA, NPA, NAMA, Shippers Council, NDIC, NCC e.t.c.,” the committee said.
The findings read in part: “The committee observed that the exchange rate of N305/$ is maintained over the past three years. Also noted that the GDP growth rate is currently standing at 2.93 per cent and an inflation rate at 10.81 per cent.
“That most of the revenue-generating agencies have failed to comply with relevant extant law of the Fiscal Responsibility Act which stipulates payment of 80 per cent of operational surpluses to the Consolidated Revenue Fund.
“The committee observed that the Federal Government is stepping up investment in health and education to fill the skills gap in the economy, and meet the international target set under the UN’s Sustainable Development Goals (SDGs).
“The Federal Government is earmarking 1 per cent of the Consolidated Revenue Funds to finance the Basic Healthcare Provision Fund to be classified as Statutory Transfer. Federal Government believes that investing in people is a core objective of ERGP.
“Government is taking steps to enhance human capital development particularly in health, education and social intervention programs in other to reduce poverty.
“Based on the joint IMF-World bank debt sustainability framework which has a Debt/GDP threshold of 56 per cent for countries in Nigeria’s Peer Group, Nigeria’s debt is expected to remain sustainable within the MTEF period.
“This implies that Nigeria Debt/GDP ratio of 19.39 per cent can afford it to expand its borrowing limits. As at 31st December, 2018, Nigeria public debt stock is valued at N24.387trillion ($79.436billion), rising at an average of 12.24 per cent per annum.
“With regard to 2020 fiscal year, the estimated budget deficit is N1.70trillion and it will largely be financed through borrowing as it has been the tradition while also additional financing of N252.08billion will be derived from privatization proceeds and N328.13billion from loans secured for specific developmental projects.
“The committee further observed that Nigeria’s current debt profile is not alarming as expressed in some but within the threshold of 3 per cent as contained in the Fiscal Responsibility Act.”
Each of the recommendations was unanimously adopted by the Senate when they were put to voice vote by the President of the Senate, Dr Ahmad Lawan.
Similarly, the House of Representatives has approved the 2020 to 2022 Medium Term Expenditure Framework (MTEF) submitted to it by President Muhammadu Buhari.
In the approval, the House jerked up the 2020 budget size from N10.002trillion contained in the MTEF to N10.729trillion.
It also adopted $57 as a benchmark as the price for a barrel of oil in the international market, placing N305 per dollar as official exchange rate while adopting production of 2.18 million barrels of crude per day.
The House gave the approval at the Committee of Supply when it considered the MTEF, yesterday.
Part of the resolutions read thus: “That the total expenditure of the Federal Government should be an increase from N10.002trillion to N10.729.4trillion.
“That the exchange of N305/$ should be maintained for economic stability while more work should be done by the minister of finance and her team and all economic advisers on improving economic growth by increasing the GDP and reducing the inflation rate to a single digit.”

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Celebrate, We’re Liberated, Fubara Tells IYC …Says Detractors Now Victims Of Their Ploys

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Rivers State Governor, Sir Siminalayi Fubara, has acknowledged with delight the assurances of brotherly support from the Ijaw Youth Council (IYC), and urged Ijaw Nation to key into the on-going celebration of the liberation the State is enjoying now.
Governor Fubara gave the charge while addressing the national and state leadership of Ijaw Youth Council (IYC), who were on solidarity walk to Government House in Port Harcourt yesterday.
The solidarity walk was staged as part of activities to celebrate the heroic exploits of the late Major Isaac Adaka Boro, 56 years after his death, which is observed on 16th May every year.
Governor Fubara noted that Major Isaac Adaka Boro genuinely stood for equity, justice, and fair play, and pursued his course to ensure liberation for the Ijaw people and their clans.
The Governor emphasised that every genuine Rivers man is a liberator, adding that he was delighted to receive them on such auspicious day to re-enact the common purpose of liberation that they shared.
Governor Fubara, who thanked the large crowd for their assurances of being available to respond to his call and stand by him, should the need arise, said there would not be any need to cause disruption of the peace, as according to him, the enemies of the State have been defeated already.
He said, “Because he stood for that unique thing, even after his death, we still celebrate him because he was a liberator.
”Every Rivers man, it doesn’t matter whether you are Ijaw or upland, the most important thing is that every genuine Rivers man must be a liberator.
”And I’m happy that you have come here today. I have also received you because we have one common purpose: to liberate our dear State. We are not going back on that.”
Governor Fubara said: “I am happy that you’ve told me this morning that when I call on you, you will respond. But there is nothing to call on you for. Because we have already defeated them.
”By the special grace of God, what they thought that they would have done to us while we were celebrating our one year in office, they are the ones sleeping with their two eyes open. It shows that we have the Ijaw blood. And what is that blood: it is the blood of action; less talk, more action.”
Governor Fubara appealed to Ijaw youths to conduct themselves peacefully as they celebrate the Major Isaac Adaka Boro Day, and also be good ambassadors of the entire Ijaw Nation.
He emphasised that it should be done in the same spirit that had enveloped the State now celebrating victory over his political detractors.
Governor Fubara promised to support the IYC Eastern Zone to have a befitting Secretariat in Rivers State.
In his speech, the National President of IYC, Mr Jonathan Lokpobiri, described the day as historic because Ijaw people were meeting with their Governor on Major Isaac Adaka Boro Day of memorial.
Mr Lokpobiri said it affirms that the gods of Ijaw people are at work, and warned all detractors to retrace their steps, and allow the Governor, who has the full mandate of the people, to discharge his duties to Rivers people.
He commended Governor Fubara for his courage, bravery and commitment to good governance, insisting that his struggle and triumph resonates with the hope of all Ijaw people.
On his part, Chairman of IYC, Eastern Zone, Mr Tamuno Kpokpo, clarified that their visit is not to signify an ethnic war but to lend support in protection of the interest and continuous development of Rivers State.
Mr Kpokpo said IYC will stand to resist anybody or group of persons anywhere who dare to cause any distraction of governance anymore in the State, and appealed that the Governor be allowed to govern the State peacefully.

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Ex-Rivers Lawmakers Have Forfeited Their Seats, PDP Insists …Denies Pressure To Restore Ex-Lawmakers

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The Peoples Democratic Party (PDP), has dismissed claims that it was under pressure to compromise its position on the status of former members of the Rivers State Assembly who forfeited their seats on account of their decision to dump the party.
National Publicity Secretary of the PDP, Hon. Debo Ologunagba, said this in a statement in Abuja, yesterday.
He declared that nothing will make the party change its position on the vacation of seats by former members of the Rivers State House of Assembly who defected from the PDP to the All Progressives Congress (APC).
Ologunagba said, “The Party also clarifies that it is not under pressure from any quarters to compromise its position in Court wherein it had already clearly stated that the former Rivers State lawmakers are no longer members of the Rivers State House of Assembly from December 11, 2023, when they publicly announced their defection from the PDP to the APC.
“This clarification is a refusal of a mischievous report in a section of the social media falsely claiming that there are plots to compromise the party’s position and provide an unattainable lifeline to the former members of the Rivers State House of Assembly to return to their seats which they have constitutionally vacated.
“Our party therefore stands by its position that the affected members have since lost their seats in the Rivers State House of Assembly having arrogantly committed an unpardonable constitutional breach.”
He further stated that, “For the avoidance of doubt, the PDP in its Counter Claim by its National Legal Adviser, Kamaldeen Ajibade SAN in Suit No: FHC/ABJ/CS/1681/2023 filed at the Federal High Court Abuja stated clearly that the former Rivers State lawmakers “are no longer members of the Rivers State House of Assembly from December 11, 2023, when they publicly announced their defection from the PDP to the APC.
“For emphasis, the PDP in the said Suit seeks among others the following Declaration/Orders against the former Rivers State lawmakers.
“A Declaration that by provisions of Section 109 (1)(g) of the Constitution of Nigeria 1999 (as amended), the seats of the plaintiffs have been vacant since 11th December 2023 when the plaintiffs announced their defection to the All Progressives Congress (APC).
“A Declaration that the plaintiffs are no longer members of the Rivers State House of Assembly having defected to the All Progressives Congress (APC) on 11th December 2023.
“An Order directing the first defendant (INEC) to conduct bye-elections in the respective constituencies of the plaintiffs in compliance with the provisions of the laws.
“An Order of perpetual injunction restraining the plaintiffs from parading themselves and/or further parading themselves or from performing or further performing the functions and duties of members of Rivers State House of Assembly…”
Ologunagba further said, “Happily, there are plethora of Judicial decisions from the highest court in our country in support of the position taken by our party.”

 

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Don’t Hurt Anybody, Else You Won’t Be Forgiven, Fubara Warns LG Chairmen …As Mbata Flags Off 33.5km Elele-Egbeda-Omoku Road

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Rivers State Governor, Sir Siminalayi Fubara, has warned that any out-going local government chairman in the State who hurts any well-meaning Rivers person will not be forgiven.
The governor pointed to an event that happened on Tuesday, where miscreants attacked some persons who attended the inauguration of the Aleto-Ogale-Ebubu-Eteo Road project, on their way home, and said such show of animosity was utterly needless.
Fubara gave the warning at Egbeda community, venue of the ceremony for the official flag-off of the Elele-Egbeda-Omoku Road project in Emohua Local Government Area, yesterday.
The governor, according to a statement by his Chief Press Secretary, Nelson Chukwudi, said, “Let me also say this here. When we left Aleto the other day, some people went there and attacked our people. There is no need for that.
“Nobody has the monopoly of violence. I should even be the one who should come out and shout that I will do this and that. But I don’t need to do that because both sides belong to me. I have taken oath to protect all.
“So, I am advising those people who call themselves local government chairmen: you have a few days in office. Please, conduct yourselves in a peaceful manner.”
Fubara drew the attention of the local government chairmen to the reality of life after office, which should help them to become more circumspect.
He said, “Politics will come, politics will go, but we will still live our lives. Let nobody deceive you, if you deliberately hurt anybody, because of expressing your useless support, nobody will forgive you. You will pay for it.
“So, I’m begging everyone, please, conduct yourselves. As a matter of fact, I am the one that is most hit, and abused as a Governor who doesn’t know what to do with power. Is it not? Have I said anything?
“So, please, just endure until when you finish, then you go your way. I don’t want trouble. I don’t want anything that will bring any problem in this State. I know what they want to do, but we will not give them the opportunity”.
Fubara further said: “We have made our promise to our leader, who happens to be the President of the Federal Republic of Nigeria, that we will take the path of peace and that is the part we are taking.
“We will continue to take that path. Don’t mind what they say. Don’t mind what they do. Peace remains the path to take. While taking the path of that peace, it does not mean that we won’t defend ourselves, or let me describe it this way: we will not just be like a tree seeing someone coming to cut it down, and won’t do anything. No, no no. We need to also protect ourselves in a lawful manner.”
Commenting on the project, Fubara said that what is being done is to let the world know that his administration means well for Rivers State, and was transparently accounting for every kobo that had been received.
Fubara explained that the Elele-Egbeda-Omoku Road project would be funded with savings from the Internal Generated Revenue (IGR), adding that 50 percent of the total cost of N80.8billion has already been paid.
He said, “Why did we pay 50 percent? We understand the fluctuation of prices as a result of exchange rate uncertainties, and we don’t want to find ourself in a situation of too much variation. So, we sought EXCO approval, and EXCO approved that we should pay 50 percent, and we have done that.
“And, what is it that we are saying to the world? We are telling the people that we are transparent. That we are a Government that is ready to serve. We are a Government that thinks about the people first.
“This road is a 33.5kilometer road that has a bridge. It is a road that would connect Ikwerre, Emohua and Ogba/Egbema/Ndoni Local Government Areas.
“When this road is completed, commercial activities will become very easy, no more wasting of manhour on the road. And that shows that we are thinking about the people, and also caring for the well-being of the people.”
Fubara urged residents of communities in the three LGAs to support the contractor to deliver the project within the stipulated 24 months.
The governor said the contractor had already pledged to ensure the project was completed and ready for inauguration before his third year in office.
He said, “I know strongly, having confirmed the reputation of the contractor, I have no doubt that they will deliver. So, I want to thank everyone of you for your patient, continue to support us, we mean well for our people.
“This is not different from the Renewed Hope Agenda of Mr President. Our mission is not different from the mission of Mr President.
“Mr President’s mission is to give hope to our people. And we are here to give hope to the people of Ikwerre, Emohua and Ogba/Egbema/Ndoni Local Government Areas, genuinely.
“Genuinely, not because we have any economic interest here, not at all. We are doing it as a service to our people. We have started our journey in showcasing our interest, wishes, and what we have done in the past one year.”
Flagging-off the project, Senator John Azuta Mbata, who represented Rivers East Senatorial District in the National Assembly, described the dual carriage road project as the type within the capacity of the Federal Government to award but now being done by Governor Fubara.
He said, “We are, indeed, extremely delighted to have a Governor of your calibre. We salute your leadership on this occasion. We salute your humanity on this occasion. We salute your humility on this occasion.
“We salute your propensity and preference for peace and tranquility. We are very delighted to be associated with your humble self and our very presence here today, I believe, makes the point that we are your supporters.
“We don’t have to talk too much about it. Anybody who is a politician understands that my standing here means I am making a grand political statement.”
Senator Mbata further said: “We are the face of the people that are behind, and we are many, millions of people, Rivers people, chiefs, traditional rulers, elder statesmen, and businessmen. We make the silent majority that are behind, supporting the effort of the Government to emancipate the people and to bring development to Rivers State.
“I want to take the opportunity to call on all and sundry, all our people, wherever you are, to give your utmost support to the Government because for the very first time, Government has moved away from the time when the Governor was seen as a tin god, a time when the Governor demanded worship, so to say; to a time when the Governor has become a symbol, a rallying point for the people.
“A rallying point for accountability of resources of our people. A rallying point for bringing all our people into the same boat. We are in an era where there is massive and extensive consultation going on. This is the order of the day, when nobody’s view is thrown away.”
On his part, the Permanent Secretary, Ministry of Works, Engr. Atemea Briggs, said the Elele-Egbeda-Omoku Road project is a state highway that will be connecting two separate Trunk-A federal roads.
He explained that it will be constructed as a dual carriageway with solar-powered street lights to provide associated benefits of improving the fortunes of the people who will be using the road.
Also speaking, General Manager of the contracting firm handling the project, Craneburg Construction Company, Mr Elie Aden, said the road is a 33.5KM dual carriageway, adding that it will have culverts, street lights and 99 meters long bridge.
He said that about 7KM length of work has already been accomplished, and promised that they will complete the project within agreed deadline.
In his welcome address on behalf of the communities, Chief Charles Bekee, recalled how the road, once reconstructed in 2001, collapsed a decade after, due to increased volume of vehicular traffic that plied the road.
Chief Bekee noted that the road remained deplorable for a long time until Governor Fubara graciously awarded the contract for the reconstruction, leading to the flag-off ceremony.
He assured that the benefiting communities in the three LGAs that the road traverses are already resolved to protect the project with high level of cooperation to give the contractor the impetus to achieve its mandate, adding that they will sustain unalloyed support of the people to the governor.

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