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Buhari Presents N16.3trn 2022 Budget Estimate To NASS …Set To Borrow N5.01trn To Fund Proposal

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President Muhammadu Buhari, yesterday, presented N16.39trillion as the 2022 budget proposal before a joint session of the National Assembly.
The oil benchmark for the 2022 appropriation is $57per barrel, while the exchange rate is N410.5 per dollar in the budget proposal titled, “Budget of Economic Growth and Sustainability”.
The budget is projected to stimulate GDP growth by 4.2 per cent, while inflation rate is put at 13 per cent.
It is projected oil production will be at 1.88m barrels per day including condensates.
Budget deficit is estimated at N6.23trillion.
While presenting the budget, Buhari said, “Defence and internal security will continue to be our top priority. We remain firmly committed to the security of life, property and investment nationwide. We will continue to ensure that our gallant men and women in the armed forces, police and paramilitary units are properly equipped, remunerated and well-motivated.
“The 2022 budget is also the first in our history, where MDAs were clearly advised on gender responsive budgeting. These are part of critical steps in our efforts to distribute resources fairly and reach vulnerable groups of our society.
“Distinguished Members of the National Assembly, the 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper sets out the parameters for the 2022 Budget as follows:
“Conservative oil price benchmark of $57 per barrel.
“Daily oil production estimate of 1.88million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); Exchange rate of four 410.15 per US Dollar; and projected GDP growth rate of 4.2 percent and 13 percent inflation rate.
“Based on these fiscal assumptions and parameters, total federally-collectible revenue is estimated at N17.70trillion in 2022.
“Total federally distributable revenue is estimated at N12.72 trillion in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at N10.13 trillion. This includes Grants and Aid of N63.38 billion, as well as the revenues of 63 Government-Owned Enterprises.
“Oil revenue is projected at N3.16 trillion, non-oil taxes are estimated at N2.13 trillion and FGN Independent revenues are projected to be N1.82 trillion.
“A total expenditure of N16.39 trillion is proposed for the Federal Government in 2022 or the economies to survive and thrive.
The proposed expenditure comprises: Statutory Transfers of N768.28 billion; Non-debt Recurrent Costs of N6.83 trillion; Personnel Costs of N4.11 trillion; Pensions, Gratuities and Retirees’ Benefits N577.0 billion; Overheads of N792.39 billion; Capital Expenditure of N5.35 trillion, including the capital component of Statutory Transfers; Debt Service of N3.61 trillion; and Sinking Fund of N292.71 billion to retire certain maturing bonds.
The total fiscal operations of the Federal Government is expected to result in a deficit of N6.26 trillion.
This represents 3.39 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act 2007.
However, President Muhammadu Buhari said his government will borrow an additional N5.01trillion in 2022 to be able to execute its N16.39trillion budget.
He made this known yesterday during the presentation of the budget to the National Assembly.
Buhari described the budget as “Budget of Economic Growth and Sustainability”.
Capital expenditure will gobble N5.35trillion and debt service N3.61trillion.
Total recurrent expenditure will be N6.83trillion, out of which personnel cost will consume N4.11trillion.
Total revenue expected is N10.13trillion.
Oil revenue will be a third of it as it is estimated at N3.16trillion. Non-oil taxes will be N2.13trillion and Federal Government revenue from its MDAs will be N1.82trillion.
Buhari said the oil benchmark for 2022 has been put at $57 and daily production at 1.88 million barrels, including condensates.
Government expects exchange rate to be stable at N410.15 to US Dollar and inflation to be kept at 13 percent.
Buhari tried to allay the fears of critics of borrowing by government.
He said the loans were within what Nigeria could afford and that the crisis the nation faces is ‘revenue challenge’, so that it can sustain repayment of the loans.
“Some have expressed concern over our resort to borrowing to finance our fiscal gaps. They are right to be concerned. However, we believe that the debt level of the Federal Government is still within sustainable limits. Borrowings are to specific strategic projects and can be verified publicly.
“As you are aware, we have witnessed two economic recessions within the period of this administration. In both cases, we had to spend our way out of recession, which necessitated a resort to growing the public debt. It is unlikely that our recovery from each of the two recessions would have grown as fast without the sustained government expenditure funded by debt.
“Our target over the medium term is to grow our Revenue-to-GDP ratio from about 8 percent currently to 15 percent by 2025. At that level of revenues, the Debt-Service-to-Revenue ratio will cease to be worrying. Put simply, we do not have a debt sustainability problem, but a revenue challenge which we are determined to tackle to ensure our debts remain sustainable.
“Very importantly, we have endeavoured to use the loans to finance critical development projects and programmes aimed at improving our economic environment and ensuring effective delivery of public services to our people”.

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Rivers Open To Blue Economy Investment -Fubara

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Rivers State Governor, Sir Siminalayi Fubara, has said that the State stands as the best investment destination for good economic achievement.
Fubara stated this while providing investment details to industrialists during the 3rd Nigeria-Indonesia Forum in Port Harcourt, yesterday.
He said that, as the oil and gas hub of Nigeria, Rivers State stands as the best investment destination for good economic achievement.
The governor, who was represented by the Secretary to the State Government, Dr. Tammy Danagogo, enumerated the vast opportunities Rivers State holds to potential investors in the marine and blue economy, agriculture, hospitality and tourism, health, transportation, amongst other sectors.
He commended the leadership of the Nigeria-Indonesia Commercial Association and the Port Harcourt Chambers of Commerce, Industry, Mines and Agriculture (PHCCIMA) for its continuous support to keep Rivers State at the peak for investors.
“Your decision to convoke this business forum is indeed apt. It will provide a robust platform for discussions in the areas of health, education, trade, investment, energy, environment…Vast opportunities exist in agriculture and agro-based industries, marine resources and blue economy, hospitality and tourism, transport, petroleum and other natural resources such as clay, raffia palm and textile with promising labour”, he emphasized.
He urged participants to use the forum to build partnerships for mutual economic benefits for both Rivers State and Indonesia.
“I am optimistic that this Forum will explore the investment opportunities in the State as well as harness them for our mutual benefits. I assure you that doing business in the State is strengthened by the enabling environment provided by the State Government to potential investors.
“I encourage you all to engage actively in discussions, share your insights, and learn from one another and create new collaborations and explore the investment opportunities in the State. Your ideas would no doubt spark the next big innovation or partnership that will drive meaningful change in our economy,” he stressed.
The Ambassador of the Republic of Indonesia to Nigeria, His Excellency, Dr. Ussra Hendru Harahap, gave insight into the Nigeria-Indonesia dynamic similarities and that Rivers State is host to Indonesia’s biggest investment in Nigeria.
He further indicated that Indonesia and Nigeria can mutually benefit from the diverse use of palm fruit and other businesses as he urged participants to explore new grounds for business development and expansion for both Indonesia and Rivers State.
The President of the Port Harcourt Chambers of Commerce, Industry, Mines and Agriculture, Sir Mike Elechi, said the aim of the business forum is to provide more business opportunities to the people of Rivers State in view of attracting more business opportunities that will expand and promote commercial activities and investments in the State.

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Tinubu, Buhari Mourn Ohanaeze Ndigbo President General, Iwuanyanwu

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President Bola Tinubu has extended his heartfelt commiserations to the family of Chief Emmanuel Iwuanyanwu, who passed away, yesterday.
Chief Iwuanyanwu was the President-General of Ohanaeze Ndigbo Worldwide. He was an accomplished businessman and notable politician.
President Tinubu condoled with the Imo State Government, the friends and associates of the deceased, and Ndi Igbo over this irreparable loss.
The President in a statement by his spokesman, Chief Ajuri Ngelale, affirmed that Chief Iwuanyanwu will always be remembered for his remarkable legacy.
President Tinubu prayed for the repose of the soul of the departed elder statesman and comfort to his family.
Meanwhile, former Governor of Abia State, Senator Theodore Orji, has expressed rude shock over the demise of the President General of Ohanaeze Ndigbo, Chief Emmanuel Iwuanyanwu.
The former Chairman, South East Governors Forum described Iwuanyanwu’s death as “ a big disaster and colossal loss to the Igbo nation”.
He said Chief Iwuanyanwu sacrificed so much in the advancement of Igbo cause but regretted that he exited at a time his fatherly counsels were most needed.
Senator Orji who said Iwuanyanwu was a personal friend, said he was highly devastated by the news of the departure of the late Igbo leader.
The former Senator representing Abia Central, a statement by his former Chief Liaison Officer , Hon. Ifeanyi Umere, said the death of Iwuanyanwu, had added to the pain of the loss of some other Igbo leaders who excited in the recent times.
He said that Iwuanyanwu would always be remembered for his patriotism, sacrificial leadership and passion for the Igbo cause.
Senator Orji condoled with the family of the late Ohanaeze helmsman while praying God to grant the soul of the deceased eternal repose in heaven.
Iwuanyanwu’s death was announced by his son Jide Iwuanyanwu, in a statement made available to newsmen in Owerri, yesterday.
According to the son, “The Iwuanyanwu family of Umuohii Atta in Ikeduru Local Government Area of Imo State announced the demise of our Patriarch, Engr Chief Emmanuel Chukwuemeka Iwuanyanwu, Ahaejiagamba Ndigbo.
“Chief Iwuanyanwu died on Thursday July 25, 2024 after a brief illness. He was aged aged 82.
“Chief Iwuanyanwu, before his death, was President General of Ohanaeze Ndigbo Worldwide and President of Owerri Peoples Assembly.
“Chief Iwuanyanwu is survived by his wife, lady Princess Iwuanyanwu, many children and grandchildren including Dr Mrs Nwadiuto Iheakanwa, Managing Director Champion Newspapers.
“Details of the burial will be announced later by the family after due consultation.”

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Nigeria Capable Of Providing Good Healthcare System -German Consul-General

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The German Consul- General, Weert Börner, has said that Nigeria was capable of providing a good healthcare system, rather than encouraging promotion of medical tourism.
Börner said this during the Africa Social Impact Summit (ASIS) yesterday, in Lagos while highlighting Germany’s role in enhancing Sustainable Development Goals (SDGs) in Nigeria.
He listed some of his country’s areas of support to include Good Health and Well-being; Quality Education; and Industry, Innovation and Infrastructure.
According to him, there are discussions on how the COVID-19 pandemic still influences the SDG achievement and the challenge to overcome the gap and its impacts.
“I can assure you that Germany was very impressed how Nigeria handled the pandemic, especially Lagos State, with Health Commissioner, Prof. Akin Abayomi.
“We have been increasing our support to modernise Nigeria’s health sector.
“I can assure you the German government is not a government promoting medical tourism to Europe. We think that’s not a solution.
“The solution is to improve the healthcare system in Nigeria.
“And there is no tourism needed in the future to get good treatment because we think that Nigeria is capable to have its own good health care system,” he said.
To support the health sector, Börner said that the German government has been training medical personnel, offering scholarships to medical students and has active presence of German companies in Nigeria’s health sector.
The envoy also said that Germany offers annual scholarships for both master degrees and PhD students globally through the German Academic Exchange Service, (DAAD).
“And in 2023, for the first time ever, among sub-Saharan African nations, Nigeria ranked number one.
“The number of Nigerian scholarship receivers went up within 13 years from just 200 to 1,600. So that’s a big success for your country, but I think also for the world,” he said.
Börner emphasised that vocational training was a traditional strength of the German system, noting that it was cooperating with the government and the private sector, citing training for solar energy engineers in Nigeria.
The consul-general stressed the need for best practices and strengthened cooperation to actualise SDGs in Nigeria, Africa and globally.
The Africa Social Impact Summit is a multi-sectoral platform dedicated to accelerating action on the Sustainable Development Goals (SDGs) in Nigeria and across Africa.
The Summit organised by Sterling One Foundation, United Nations and the Lagos State Government has the theme: “Reimagining Progress: A New Blueprint for Sustainable Growth in Africa.”

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