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Senators Slam FG’s 2018 Budget – Say Projections Unrealistic

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Senators yesterday rejected the projections upon which the 2018 budget is based, declaring the projections as unrealistic.
The lawmakers, who commenced the debate on the general principle of the budget said that the implementation of the 2017 budget left so much to be desired.
Senator Enyinnaya Abaribe (PDP, Abia South) who opened the floor of the debate caused an uproar when he declared that the 2018 budget was ‘fictitious, adding that the budget is not consolidating on the 2017 budget.
The Senator said that the N8.612 trillion 2018 budget does not consolidate on the 2017 and 2016 budgets as claimed by President Muhammadu Buhari during the 2018 budget presentation.
The lawmakers also decried what they called the abysmal implementation of the N1.2 trillion capital component of the 2017 budget. The Senators also faulted the parameters contained in the 2018 budget especially the oil benchmark of $45 per barrel, adding that it should be jerked up to about $50. Senator Abaribe drew the ire of some senators, especially Senate Leader, Senator Ahmed Lawan who stated that the use of the word ‘fictitious’ was unparliamentary.
The Abia Senator then agreed to withdraw the contentious word but replaced the same with the word ‘imaginary’ even as he maintained that the implementation of the budget was very low.
He said: “I am just quoting the Senate Leader from his speech, which said the 2018 budget was designed to consolidate on the achievements of the 2016 and 2017 budgets. What was done in 2017 when less than 15 per cent of that budget was released? Nothing was done and that was why I called it (2018 budget proposal) fictitious. I am very sorry if that is the word he is bothered about. I will withdraw the word ‘fictitious’ and use ‘totally imaginary.” According to Abaribe, the receivables (revenue) in the budget were being exaggerated, adding that the revenues were only one-tenth of the figures being claimed by the government. He stated that the budget was being predicated on parameters that have been destroyed by facts available.
Senator Ben Murray Bruce (PDP Bayelsa East) in his own contribution said that the 2018 budget proposal is a “budget of active imagination,” as according to him, the budget is already committing 25 percent to debt servicing.
He said: “We have to decide what the exchange rate really is. Is it N305 (to US$1) or N365?” Murray Bruce stated that the cost of governance in Nigeria remains very high, adding that agencies that have outlived their usefulness still remain on government’s payroll.
He said: “FRCN (Federal Radio Corporation of Nigeria) has 8000 workers. Sell it to the staff. Who listens to the Voice of Nigeria (VoN)?” He said that while it was commendable that the Ministry of Transport and Chinese Firms were working on the multi-billion dollar rail projects, the Senate should take deep looks at the intricate details.
“We have steel, Ajaokuta is there. Why don’t we use that facility and create jobs through that,” he said.
Senator George Akume, who also contributed said that the oil benchmark should be increased to $50 because crude oil price has increased to between 58-$62 per barrel.
Deputy Senate Whip, Senator Francis Alimekhena (APC Edo North) told the Senate that the 2016 and 2017 budgets were bloated, adding that they lacked impact on the people.
He stated that it was unrealistic to assume that about N2 trillion would be realised from oil revenue and N4 trillion from non-oil revenue.
He also supported the increase of the budget benchmark to $50 while output is maintained at 2million barrels per day as in the 2017 budget.
The senator said: “There is no need to raise the hope of Nigerians and execution is zero. Let’s cut our coat according to our cloth. If the budget size is N3 trillion and execution is N3 trillion (100 percent), we will be happier than to say it is N8 trillion and execution is just N2 trillion.”
Senator Gbenga Ashafa (APC Lagos East) who also contributed said that only the sum of N450 billion has so far been released in the capital votes of 2017 budget.
He stated that the key issue with the 2016 and 2017 budgets was the question of funding which he said made the budgets less impactful.
He said: “A budget can be big and bloated, but when you do not have enough funds for capital projects which are more impactful, then the budget is going nowhere.” The senator cited the example of the Federal Roads Maintenance Agency (FERMA), which he said only N800 million has so far been released out of its 2017 appropriation of N25 billion.
Ashafa said: “What impact would that make on roads,” adding that only N500 million has so far been released out of the N11 billion budget of the Nigeria Railways Corporation (NRC).
Deputy Senate President, Senator Ike Ekweremadu, who presided over the sitting, said that there is an urgent need to reconsider the budget deficit projections.
He said: “I thank everyone for their contributions, I commend my colleagues for keeping their language clean and speaking their mind on the 2018 budget debate. “Some research agencies are not researching anything and are still being funded, we need to point them out so we don’t spend money on them.”
Meanwhile, the House of Representatives has announced that it will suspend plenary from tomorrow.
This is to allow members proceed on oversight assessment of the 2017 budget and hold defence sessions for the 2018 budget.
The suspension will last for three weeks.
The Deputy Speaker of the House, Mr. Yussuff Lasun, who presided over proceedings, yesterday, made the announcement as debate on the budget began at the floor of the House, yesterday.

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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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