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N13.08trn Budget: 2nd Recession To Hit Economy Before Dec Ends -Buhari …N’Delta Amnesty Programme Gets N65bn

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President Muhammadu Buhari, yesterday, predicted further hardship for Nigeria as he said the nation may face another recession before the end of the year, if serious and effective measures are not taken to ensure the nation’s financial security.
Buhari raised the alarm in his budget speech during the presentation of N13.08trillion budget for the 2021 fiscal year to a joint session of the National Assembly,.
He, however, vowed to pursue his administration’s goal of lifting 100million Nigerians out of poverty, even as he disclosed that the government has released N2.1trillion for capital projects in the 2020 budget.
President said about N3.85trillion has been earmarked for capital projects in the 2021 fiscal year, while the non-debt recurrent expenditure for next year would gulp N5.65trillion.
He said this was N1.15trillion higher than what was budget for capital in 2020.
The 2021 budget also has N100billion earmarked for Constituency projects of the lawmakers of both Chambers of the National Assembly, just as N128billion has been slated for statutory transfer to the National Assembly for payment of salaries and allowances next year.
This would, therefore, form part of the proposed N484.49billion transfers to other budget stakeholders.
A study of the 2021 budget breakdown as submitted by the President, indicated that the Ministery of Defense received the lion share of N840.56billion, followed by Ministry of Education, which received N545.10billion, while the Ministry of Health received N380.21billion in the 2021 Appropriation Bill.
According to the President, in line with the proposed borrowing plans to sustain the economy, the 2021 budget would operate at a deficit of N5.2trillion, just as N4.28trilion would be borrowed to finance the budget deficit.
The parameters and fiscal assumptions underpinning the 2021 appropriation, included: Benchmark oil price of $40 per barrel; daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day).
Exchange rate of N379 per $1; Gross Domestic Product growth projected at 3.0 per cent and inflation closing at 11.95 per cent.
The President said to maintain the peace in the Niger Delta region for economic and social activities to thrive, the provision of N65billion for the Presidential Amnesty Programme has been retained in the 2021 Budget.
“In addition, the sum of N63.51billion has been appropriated for the Niger Delta Development Commission (NDDC) and N24.27billion has been provided for the capital projects of the Ministry of Niger Delta Affairs. These allocations should further support the development of the region by facilitating the completion of important ongoing projects, such as the East-West Road”, he said
According to him, “Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886trillion. This includes Grants and Aid of N354.85billion as well as the revenues of 60 Government-Owned Enterprises.
“Oil revenue is projected at N2.01trillion. Non-oil revenue is estimated at N1.49trillion. As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation. Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.
“An aggregate expenditure of N13.08trillion is proposed for the Federal Government in 2021. This includes N1.35trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85billion.
“For 2021, the proposed N13.08trillion expenditure comprises: Non-debt Recurrent Costs of N5.65trillion; Personnel Costs of N3.76trillion; Pensions, Gratuities and Retirees’ Benefits of N501.19billion; Overheads of N625.50billion; Debt Service of N3.124trillion; Statutory Transfers of N484.49billion; and Sinking Fund of N220billion (to retire certain maturing bonds).
“The 2021 Budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20trillion. This represents 3.64 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act, 2007. It is, however, to be noted that we still face the existential challenge of Coronavirus pandemic and its aftermath; I believe that this provides a justification to exceed the threshold as provided for by this law.
“The deficit will be financed mainly by new borrowings totalling N4.28trillion, N205.15billion from Privatization Proceeds and N709.69billion in draw-downs on multilateral and bilateral loans secured for specific projects and programmes.”
The sum of N484.49billion was provided in the budget proposal for Statutory Transfers representing an increase of N56.46billion (or 13 per cent) over the revised 2020 provision.
It includes: Niger Delta Development Commission (N63.51billion); North East Development Commission (N29.70billion); National Judicial Council (N110.00billion); Universal Basic Education Commission (N70.05billion); Independent National Electoral Commission (N40.00billion); National Assembly (N128.00billion); Public Complaints Commission (N5.20billion); Human Rights Commission (N3.00billion); and Basic Health Care Provision Fund (N35.03billion).
In the recurrent expenditures, the budget has N227.02billion for the Ministry of Interior; N441.39billion for the Ministry of Police Affairs; N545.10billion for Ministry of Education; N840.56billion for Ministry of Defence; and N380.21billion for Ministry of Health.
On debt servicing, Buhari said the Federal Government was committed to meeting its debt service obligations.
The budget provided N3.12trillion for this in 2021, representing an increase of N445.57billion from N2.68trillion in 2020.
He said a total of N2.183trillion has been set aside to service domestic debts, while N940.89billion has been provided for foreign debt service, just as N220billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.
Speaking on overhead costs, the President said total overhead costs of MDAs and government owned enterprises are projected to rise to N625.50billion in 2021, mainly due to the inclusion of the overheads of an additional 50 government owned enterprises.
He added that overhead provisions have also been made for newly created agencies, urging MDAs to adhere to extant expenditure controls as a measure to keep a tab on running costs.
While indicating that an aggregate sum of N3.85trillion is expected to be available for capital projects in 2021, he gave the details as: N1.80trillion for MDAs’ capital expenditure; N745billion for Capital Supplementation; N355billion for Grants and Aid-funded projects; N20billion for the Family Homes Fund; N25billion for the Nigeria Youth Investment fund; N336billion for 60 Government Owned Enterprises; N247billion for capital component of Statutory Transfers; and N710billion for projects funded by Multilateral and Bilateral loans.
He said Capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones, adding “We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding.
Highlights of the 2021 budget include: Power: N198billion (inclusive of N150billion for the Power Sector Recovery Plan); Works and Housing: N404billion; Transportation: N256billion; Defence: N121billion; Agriculture and Rural Development: N110billion; Water Resources: N153billion; Industry, Trade and Investment: N51billion; Education: N127billion; Universal Basic Education Commission: N70billion; Health: N132billion; Zonal Intervention Projects: N100billion; and Niger Delta Development Commission: N64billion.
According to the President, the sum of N420billion was also budgeted to sustain the Social Investment Programme, N20billion has also been set aside for the Family Homes Fund, Social Housing Programme. N75billion Survival Fund Programme to support and protect businesses from potential vulnerabilities. N100billion to households and small businesses; N100billion to the healthcare and pharmaceutical industry; and N1trillion to large agricultural and manufacturing businesses.

 

By: Nneka Amaechi-Nnadi, Abuja

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Draw Up Futuristic Policies To Strengthen Governance, Fubara Tells NISS Team  …Says Rivers’ll Deploy AI To Drive Dev, Tackle Political Crisis

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Rivers State Governor, Sir Siminalayi Fubara, has said that it was now imperative for policy makers to draw up futuristic plans that can strengthen governance when implemented while also protecting the interest of the people.

 

The Governor emphasised that his Administration was ready to leverage artificial intelligence (AI) because it would significantly enhance operational efficiency and transform citizen experiences.

 

Governor Fubara made the remark when participants of the Executive Intelligence Management Course (EIMC-17 Syndicate 5) of the National Institute for Security Studies (NISS) paid him a courtesy visit at Government House in Port Harcourt on Monday.

 

He stated that the advanced societies were accelerating the use of artificial intelligence because it enables a faster data-driven decision-making process and allows administrations to make more informed choices that are based on accurate and real-time insights.

 

“Today, we are moving from the aspect of physical battle to intellectual battle and Artificial Intelligence (AI) is the right model to use to fight crime.

 

“As a State, we did not hesitate to accept your invitation because we want to tap into it. We want to be part of this success, knowing fully well that your success will also rub off on our State.”

 

Governor Fubara emphasised: “I heard you say here that, at the end of the visit, your report will be part of what would be used to formulate policies.

He added, “It’s very important and we know quite alright that, for us to do better than what we are doing, we need policies that are strong, futuristic, and can strengthen governance as well as policies that would protect the interest of the common man.”

 

Governor Fubara assured that his Administration was determined to work with the institute to build a strong synergy that will ease the processes of governance.

Sir Fubara directed the Secretary of the Rivers State Government, Dr Tammy Danagogo, to sustain contact with the group so that its final report can be made available for the State to study and implement.

“It is important we get the final report so that it can help us in some of our planning and other strategies. You know, we are a Government that does not believe in violence even when we are being provoked on all sides.

“What we want to use to fight our battles is AI. So, sincerely, we are winning with AI. When I said it, it was not a mistake. I know what I mean.

Governor Fubara further said: “We feel very honoured at this particular time to have you in our State, especially considering the high level of security and intelligence work that you are doing.

“It will give us a good image as against what is being rumoured everywhere that the streets of Port Harcourt, is being paraded by cultists, kidnappers and all sorts of criminal elements.

“You might have also gone round and seen for yourself that Rivers State, even in the face of the political crisis, is also peaceful.

“This is because the management of the State, as at today, has always emphasised that peace is the only way and solution for development. So, I am happy that your presence here has also helped to make us score another point before our detractors.”

Governor Fubara stated that, to build a very successful nation, it was important for everybody to work as a team.

Such teamwork, he noted, will diminish tendencies to engage in unhealthy rivalry, and frustrate politics of bitterness, particularly because government was a continuum.

“After my Administration, another person, definitely, will take over, but what is important is for us to work for the common interest of everybody, not for self. If we are talking about self, we will be very destructive. Our policies will be very myopic and short-sighted.

“I want to urge everyone to think first about the well-being of our country. I want to appeal to everybody, let us stop this politics of bitterness and play politics of friendship.

“Let us liken it to a football match: somebody has to win, somebody has to loss. There will be another tournament, and you will try again to see if you can reclaim your medal. That is the way life should be seen.

“It shouldn’t be an issue of unnecessary competition. It shouldn’t be an issue of unnecessary rivalry that leads to bitterness, leads to sickness of the bone. We should try and emulate better relationships,” he added.

In his speech, the Head of the delegation of the participants of the Executive Intelligence Management Course (EIMC) 17, Syndicate 5) of the National Institute for Security Studies (NISS), Didacus Egor Egbeji, said that officers at the rank of not less than Deputy Directors were in the State for a weeklong study tour as part of requirements of their 10- month course at the institute.

Egbeji, who is also the Deputy Commandant of the National Institute for Security Studies, explained that the participants are strategic leaders who, in the next 5 years, are likely to be heading their different agencies and will be using gains from the training to ensure efficiency at their agencies.

He said, “The training has to do with different modules. We have the security module; we have the crisis management module; we have the governance module; and we have the strategic module. As we are here, the other groups are in states, such as Cross River, Abia, Enugu, Zamfara, Kogi.

“We are expected, after this one week tour, to go back to the institute to make a presentation of what we found in Rivers State in terms of the theme of the course which is “Artificial Intelligence, Security and Emerging Economies in Africa: Challenges and Prospects.

“It is after this submission that we are also expected to embark on a study tour of six African states. By the end of next month, after the tour of the African states, by September, we will embark on a tour of six other countries across the globe.”

Egbeji also said that at the end of those tours, they will do a review, put reports together and present it as an Executive Brief to President Bola Tinubu through the Office of the Vice President.

 

 

 

 

 

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Be Firm In Fight Against Oil Theft, Fubara Tells CNS …As Navy Moves Training Hqtrs To Rivers …Seizes 14 Vessels In Three Months

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Rivers State Governor, Sir Siminalayi Fubara, has encouraged the Nigerian Navy to be firm in the fight against all forms of economic sabotage, particularly crude oil theft, in the nation’s waterways.
The Governor noted with delight the positive results already recorded by the Navy in the State due largely to the tremendous support it has received from his administration.
Governor Fubara spoke when he hosted on courtesy visit, the Chief of Naval Staff, Vice Admiral Emmanuel Ikechukwu Ogalla with his delegation of top officers of Navy High Command at Government House in Port Harcourt,yesterday.
The Rivers State Governor stated that Nigeria was facing myriad of crises, including economic challenges, rising insecurity and criminal activities that threaten the national economy, which should not be overlooked.
He said, “We are working together, we will give you all the support to make sure that you deliver on your mandate.
”And what is the mandate? You were appointed at a time when our country is facing a lot of crises, and your duty, among others, include to reduce, if it cannot be eliminated completely, the criminalities perpetrated on the waterways; oil theft and others.
”And I am happy that they are positive and commendable records of achievement so far, in the course of your tenure.”
Governor Fubara said the good news of reduced level of oil theft in Rivers State is evidence of the many positive things that are happening in the State beyond the much hyped negativity, and assured that such positive achievements will be sustained.
The State Chief Executive insisted: “The success of the Nigerian Navy in our State, in the areas of oil theft, is because the State Government has given you all the necessary support.
”We have collaborated with the command here. We supported them morally, and with all the necessary logistics.
”We have also maintained good relationship with the communities to make sure that whatever it is that is required for these operations to be successful were granted. I am happy to be associated with these very laudable achievements.”
Governor Fubara said: “So, I have to say that I am happy that the Chief of Naval Staff, today, is commending the success of the exercise. He is commending the doggedness of the men in fighting oil theft, not just in the Niger Delta, but particularly in our State.
”I want to assure you that we will continue to give them the support, and discourage any act that would be a sabotage to the economy of our State.”
Governor Fubara said that Rivers State was not named in error: there are several water channels that can boost the operations of the Navy. This is why we are requesting that the Nigerian Navy move all its bases to the State.
”It was not a mistake they called it Rivers State. It is surrounded with all forms of rivers. You want the Atlantic region, you can get it here. You want those small creeks, you can also get it here. Maybe, if you want an Island, you can also find it here.
”So, it is proper if we work with you and you have all that is required within this geographic region, to have all your bases relocated to Rivers State,” he said.
He further said: “We must continue to give you the necessary support to make sure that you succeed. I am happy to also say that, as the Governor of the State by the special grace of God, we are still here, not minding the dramas here and there. We will not let our people down in ensuring that we protect their interest.
”We will support the genuine course of governance; the protection of lives and provision of basic amenities. And these can only be achieved when there is a peaceful environment.
”And the peaceful environment can only come when there is a collaboration with security agencies to prevent crimes, and protect lives and property of residents.”
In his address, the Chief of Naval Staff, Vice Admiral Emmanuel Ikechukwu Ogalla, reiterated that the Nigerian Navy and Rivers State are like conjoined twins who cannot do without each other.
This is because, he said, they needed collaboration on various aspects of their activities ranging from training, operations, logistics, adding that Rivers State is key to their performance.
”My purpose of coming here today are three folds. The first is to inform His Excellency that on Saturday, we are graduating a set of former civilians who have been trained at our Basic Training School, Onne, and are graduating to join the ranks of the Nigerian Navy as ratings in order to beef up our strength.
”The second reason is to first appreciate the Governor and the entire Rivers State Government for the schools they donated to us: the Ambassador Nne Krukrubo Model Secondary School at Eleme in Eleme Local Government Area, and the Model Secondary School, Egbelu in Oyigbo Local Government Area.”
Vice Admiral Ogalla stated further: “We also want to use this opportunity to inform His Excellency that following that donation, and based on our strategic plan of moving our facilities to areas where we have enough space to be able to carryout out duties, we have renovated the school at Eleme.
”We are happy to report, today, that the erstwhile location of Headquarters of Naval Training Command, Lagos, is moving to that particular school location in Eleme, tomorrow.’
Speaking on the operational successes recorded thus far, he said that propelled by the charge given to them by President Bola Tinubu, the Nigerian Navy, under his watch, has impounded 14 vessels caught to be conveying stolen crude oil and several other individuals arrested, adding that investigations into their culpability were ongoing.
”I am here today to report Sir, that, with the “Operation Delta Sanity”, launched in January, 2024, we have been very successful, and within the period, we have recorded tremendous successes and achievements.
”Over 14 large crude carrying vessels have been arrested within that period. Most of them are at various levels of investigation. We have also arrested several barges and other companies and organizations that are involved in oil theft.
”As a result of the operations, we are happy to report that there has been tremendous improvement in terms of security in the maritime environment,” Ogalla added.

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118 Inmates Escape As Rainstorm Destroys Niger Prison

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A heavy downpour has wreaked havoc on the Medium Security Custodial Centre in Suleja, Niger State, resulting in extensive damage to the facility and facilitating the escape of 118 inmates.
This was disclosed in a statement signed by the spokesperson, Federal Capital Territory Command of the Nigerian Correctional Service, Adamu Duza, yesterday.
Duza noted that the downpour which occurred on Wednesday night, caused severe damage to the custodial centre’s infrastructure, including a breach in the perimeter fence, which allowed the inmates to flee.
However, 10 fleeing inmates had been recaptured following a swift response by the NCoS in collaboration with other security agencies.
Duazu promised that efforts were ongoing to recapture the remaining fleeing inmates, adding that their database would soon be made known to the public.
Recognising the vulnerability of ageing facilities, many of which were built during the colonial era, Duza acknowledged that the NCoS was committed to modernising its infrastructure.
The statement further noted that the Controller of Corrections, FCT Command, Francis John, assured the public that the situation was under control and urged them to carry on with their daily activities without fear.
The public was encouraged to remain vigilant and report any suspicious activities or sightings of escaped inmates to the nearest security agency.
The statement read in part, “A heavy downpour that lasted for several hours on the night of Wednesday, April 24, 2024, has wreaked havoc on the Medium Security Custodial Centres, Suleja, Niger state, as well as surrounding buildings, destroying parts of the custodial facility, including its perimeter fence, giving way to the escape of 118 inmates of the facility.
“The service has immediately activated its recapturing mechanisms, and in conjunction with sister security agencies, has so far recaptured 10 fleeing inmates and taken them into custody, while we are in hot pursuit to recapture the rest.
“The service is not unmindful of the fact that many of its facilities were built during the colonial era and that they are old and weak. The Service is making frantic efforts to ensure that all aging facilities give way to modern ones.
“The Controller of Corrections, FCT Command, Francis John, wishes to assure the public that the service is on top of the situation and that they should go about their normal businesses without fear or hindrance.”
Meanwhile, the United States has underscored the significant challenge of overcrowding in Nigerian prisons.
The US, according to its ‘2023 Country Reports on Human Rights Practices: Nigeria,’ published on its website on Tuesday, noted that numerous correctional facilities were grappling with a staggering 50 per cent increase in the number of inmates beyond their intended capacity, revealing a systemic issue.
Furthermore, it disclosed that a notable proportion of these prisons, some with histories dating back 70 to 80 years, faced difficulties in meeting even the most fundamental standards of living.

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