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Coronavirus: Senate Wants N10.5trn 2020 Budget Cut, Subsidy Removal, Others

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The Senate, yesterday, said a downward review of the N10.5trillion Appropriation Act 2020 had become inevitable amid the sharp drop in the price of crude oil.
It, however, said the modalities to be adopted in the budget review should be agreed to by both the legislature and the executive.
This followed consideration of a report of Senate Joint Committee on Finance, Appropriations, National Planning and Petroleum Resources (Upstream) on the urgent need to monitor and examine the current economic reality caused by sharp drop in the price of crude oil, the emergence of deadly Coronavirus and the uproar within the OPEC community.
The committee, chaired by Senator Solomon Adeola (APC, Lagos) was constituted last week to interface with the relevant stakeholders in the Executive and business community with the intention of bringing out suggestions, solutions and way forward out of the present economic reality.
Lawan warned, yesterday, that following the impact of the ravaging Coronavirus on the economy, Nigeria will be in deeper trouble if as a country, we are not ingenious enough.
Against this backdrop, the Senate has summoned the Minister of Finance, Budget and National Planning, Zainab Ahmed; Governor of Central Bank of Nigeria (CBN), Godwin Emefiele and the Minister of State for Petroleum, Timipre Sylva, to appear before it at plenary next week.
According to Lawan, the summon would enable the ministers and the CBN to abreast the la lawmakers with what was going on at the moment with the economy and then the senators can make suggestions, just as the apex bank boss will come up with some measures that are intended to support the economy.
According to Lawan, the system requires a holistic approach, both fiscal as well as monetary policies, just as he promised that the Senate would come up with speedy legislations that would help create an environment where the nation’s economy does not collapse.
Lawan has also urged the Executive to as a matter of urgency, forward to the Senate the Petroleum Industry Bill (PIB) for quick consideration and passage.
Lawan said: “I think we are in a very challenging period but every challenge normally presents some opportunities. I think like Senator Odebiyi asserted that we should take our opportunities.
“The PIB we had expected by now would have been in the National Assembly but it is not. We had thought we would be able to pass the PIB within this year so that we are able to make our petroleum industry to have the legal framework that investors would find attractive to be here. But we are still expecting that the executive would work faster and harder to present the PIB to the National Assembly in the shortest possible time.
“But before then, now that we know that it is difficult or even impossible to get the foreign loans that we had built our hopes and implementation of our capital budgets on, I think we have to be very ingenious as a country. We have to look inwards.
“The Central Bank of Nigeria has come up with some measures that are intended to support the economy. I think it requires a holistic approach, both fiscal as well as monetary policies and if need be we pass a speedy legislations to create an environment where our economy does not collapse; that our economy is sustained with internal resources.
“But we have to be very careful. If we have to now borrow as a government from the domestic available resources, we should be very careful that we do not crowd out the private sector from getting required loans. So, it is going to be walking a tight rope. But we need to have a plan in which both the executive and the legislature come together.
“We need to listen to them really. I would probably suggest that going forward, in the next one or two weeks that the entire Senate to have a briefing from the Ministries of Finance, Petroleum and the Central Bank so that we are abreast with what is going on and then we can make our suggestions.
“But meanwhile, our Joint Committee continues to engage them, but this is a very tough time and it is a time that we should not suffer only but we should also benefit from this tough time.
“We need to understand what the CBN is talking about. I saw about seven or eight measures that the CBN has come up with to support local investments. We need to engage them and find out whether that is good enough or we can do better because the truth is, every country now will be trying to stay alive.
“So, probably there may not be anything to spare for any other country and if we are not ingenious enough, I think we will be in a deeper trouble. But Nigeria is a very resilient country so we should come together with the executive arm of government and work out a way out of this mess and probably come up with more serious agenda for diversification.”
Citing the committee’s findings, the lawmaker said the effects of the sharp drop in the crude oil price would be felt from May, June and July.
The report therefore recommended that, “Downsizing the Appropriation Act 2020 as passed by the National Assembly is inevitable, but the modalities to be adopted in the review of the budget shall be as agreed to between the Federal Ministry of Finance, Budget and National Planning and the joint committee of the Senate.”
The report also said the revenue-generating agencies must be alive to their responsibility in line with the Fiscal Responsibility Act passed by the National Assembly and other relevant laws of the National Assembly.
Adeola said the committee, at its inaugural meeting with the Finance Minister, Zainab Ahmed, discussed issues bordering on the current Appropriation Act 2020; cost of production of a barrel of crude oil; loss of revenue as a result of gas flaring which runs into several billions of dollars; devaluation of Naira; removal of oil subsidy.
He said, “The Joint Committee looked at the issues discussed from two angles; the short and long term solution.
“The short term solution is to address the sharp drop in the crude oil price which is creating difficulties in funding the 2020 Appropriation Act as passed by the National Assembly.
“The long term solution discussed is the need to consider and pass the Petroleum Industry Bill (PIB), which is yet to be laid before the National Assembly. This will address the issue of cost of production and Gas flaring where the country’s resources are going down the drain and other issues that might affect the petroleum sector.”

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Bonny-Bodo Road: FG Offers Additional N20bn, Targets December Deadline

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The Federal Government has agreed to offer additional N20.5 billion for the completion of the Bonny-Bodo road project in December.
The government, however, said if the construction company, Julius Berger, was not ready to accept the offer, the contract will be terminated.
Minister of Works, David Umahi, said this during a meeting with the Managing Director of Julius Berger, Lars Ritcher and members of Bodo-Bonny Road Peace Committee, on Wednesday in Abuja.
The reports that Julius Berger had requested asking for a N28 billion variation on the 82 per cent completed project.
The company hinged its request on the rise in exchange rate, construction materials, and diesel among others.
Umahi, however, said the government was willing to provide N20 billion out of the N28 billion that Julius Berger requested for.
According to him, the Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed.
The Tide’s source recalls that in 2017, an agreement between the Federal Government, Nigeria Liquefied Natural Gas (NLNG) and Julus Berger on modalities for funding the project cost of N199.923 billion, without any further increase.
“If you do not accept the Federal Government’s offer by Friday and resume work on the site, the previously expired 14-day ultimatum for termination of project will be enforced.
“I want to let you know that we are the client. No contractor will dictate for this ministry, and there is no job that is compulsory that a particular contractor must do.
“We give you an offer. If you do not like the offer, you walk away. You don’t force us or we don’t force you.
“Agreement of contractual relationship is a mutual understanding,’’ the minister said.
Umahi said that had Julius Berger adhered to the project timetable, the project would have been completed on schedule before the impact of foreign exchange.
“Our position is very simple, we reject the conditions of Julius Berger totally and we ask Berger to please go back to the site to complete the project based on our offer.
“Our offer is unconditional and we say, accept or reject, so you cannot subject our offer to your conditions ,’’ he added
Umahi said the company should be humble in its dealings and exhibit solidarity during challenges.
Earlier, Richter had explained that the company suspended work on the site to seek some clarifications from the ministry.
According to him, the company asked for the augmemtation of N28 bilion because as at the time the contract was awarded the exchange rate was N305 to a dollar and diesel was N350 eor litre.
“We will still require some outstanding materials; that means that the initial agreement can’t fly because the variation of project is not sufficient and the exchange rate is also not in our favour to compensate the additional costs.
“That is why we decided to go back to our original proposal of the augmentation. Augmentation is a very normal process for all contracts,” the managing director said.
Chief Abel Attoni, Palace Secretary, Bonny Kingdom, expressed gratitude to President Bola Ahmed Tinubu over the decision to complete the Bodo-Bonny road project.
Attonu urged the parties to be patriotic and make the necessary sacrifice for the actualisation of the project.

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Court Vacates Arrest Warrant Against Ehie, Five Others

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The Federal High Court, sitting in Abuja, yesterday, set aside the warrant of arrest against Rt. Hon. Edison Ehie, the Chief of Staff, Government House, Rivers State, and five others.
Justice Emeka Nwite stated this while delivering his ruling in an application seeking to vacate the warrant of arrest which he issued on January 31, 2024.
The Judge said he was misled by the police in ordering the arrest of Ehie in connection with the burning of the Rivers State House of Assembly on October 30, 2023.
The Police, had told the court that Ehie and five others masterminded the bombing of the Rivers State House of Assembly amid a plot to impeach Rivers State Governor, Siminalayi Fubara.
The five others are Jinjiri Bala, Happy Benedict, Progress Joseph, Adokiye Oyagiri, and Chibuike Peter, alias Rambo.
Justice Emeka Nwite while setting aside the warrant said it has now become a mere academic exercise.
The judge further granted same to the 2nd to 5th Defendant/Applicant in same suit.
Femi Falana, SAN, and Oluwole Aladedoye, SAN, who appeared for the defendants in separate suits, held that the court lacked the jurisdiction to have granted the order.
While Falana filed a motion seeking an order to set aside the January 31 order by Justice Nwite, Aladedoye applied for a stay of execution of the arrest order.
In a motion marked: FHC/ABJ/CS/112/2024 dated February 2 and filed on February 7 by Falana, Ehie sought two orders, including “an order setting aside the order made on January 31 for want of jurisdiction.
“An order of this honourable court staying the execution of the order made on the 31st January 2024, pending the hearing and determination of this application.”
Giving six grounds of argument, Falana argued that the complainant had not filed any criminal charge or motion before the court.
The senior lawyer argued that the court lacked the territorial jurisdiction to entertain the ex-parte application as the alleged offences of conspiracy, attempted murder, murder and arson took place in Port Harcourt, the state capital.
“He submitted that the court lacked the vires to grant an application to arrest and declare his clients wanted in respect of the alleged offences.
“The complainant/respondent (IG) did not adduce evidence of terrorism in the affidavit in support of the application.
“The complainant/respondent did not cite any section of the Terrorism Prevention Act, 2013 (as amended) alleged to have been contravened by the applicants,” he argued.
Aladedoye in a motion on notice dated and filed February 9, on behalf of the five defendants, sought two orders, including
“an order staying execution or further execution of the order(s) of this honourable court made on the 31st of January, 2024, pending the hearing and determination of the appeal filed by the applicants.
“An order of injunction restraining the complainant from carrying out or further carrying out the orders of this honourable court made on the 31st January 2024, pending the hearing and determination of the appeal filed by the applicant in this case.”
Giving a three-ground argument, Aladedoye said that a notice of appeal had already been filed against Justice Nwite’s orders.
According to the senior lawyer, the notice of appeal contains grounds that challenge the jurisdiction of the honourable court.
The Inspector-General had, in a charge marked: FHC/ABJ/CR/25/2024, arraigned the defendants on a seven-count criminal charge bordering on terrorism and murder.

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13 Students Bag First Class, 182 PhD As IAUOE Graduates 5,550, Today

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The authorities of Ignatius Ajuru University of Education (IAUOE), Rumuolumeni, in Rivers State, have stated that 13 students will be graduating with first class while 182 graduands will bag Ph.D during the 42nd convocation ceremony of the university billed to hold today and tomorrow.
The Acting Vice Chancellor of the University, Prof. Okechuku Onuchuku, disclosed this during pre-convocation press briefing held in his office, yesterday, to unveil the programme for the convocation ceremony.
Onuchuku said that the 13 students were among the 4,653 graduands expected to graduate for the 2022/2023 academic session with first degree, while 897 students will be graduating with postgraduate degrees.
The Acting Vice Chancellor while giving the breakdown stated that 13 students made first class, 890 students bagged second class upper while 2,739 students had second class lower for first degree.
He further stated that 182 graduands bagged PhD, 667 got master’s degree and 48 got postgraduate diploma, adding that the convocation ceremony will hold today and tomorrow for first degree graduands and postgraduate graduands respectively.
He said that a total of 47 programmes out of the 54 programmes being undertaken at the first degree levels had been given full accreditation by the National University Commission (NUC) as well as all the programmes at the postgraduate school.
“We have ensured that our programmes both at the first degree and post graduates are in line with the NUC stipulated guidelines and speculations. We have also ensured that we are in line with both our academic and administrative policies,” he said.
Prof. Okechukwu urged the graduating students of the institution to always remember to use thier positions to help their alma mater as well as project the institution in a good image in the larger society.
“Try to ensure you finish any project you want to do, evaluate it first and avoid unfinished or abandoned projects. We will be graduating first degree graduands on Friday while Saturday will be for postgraduates, “he added.
Prof. Onuchukwu also said his administration had achieved a lot since he assumed office as Acting Vice Chancellor, stressing that his administration had improved on the welfare of the staff and the students.
“There are a lot of projects completed in the school; we have also given scholarship to some students and also encouraged departments to do same. We also impacted positively on our host communities”, he said.

Akujobi Amadi

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