Tag Archives: Budget

Just in: President Buhari signs 2021 budget. [Nigeria]

Advertisements

The National Assembly also provided the sum of N3,324,380,000 (trillion) for debt servicing.

President Muhammadu Buhari has signed the 2021 Appropriation Act.

Buhari officially signed the document at a ceremony held in the Presidential Villa, Abuja. Noble Reporters Media reports

The National Assembly had on December 21, 2020, passed the 2021 Appropriation Bill with an aggregate expenditure of N13, 588, 027,886, 175 trillion.

It comprises total Capital Supplementation of N1,060,751,051,650 and total Capital Expenditure of N4,125,149,354,222, Statutory Transfer stands at N496,528,471,273; recurrent Expenditure of N5,641,970,060,680 and Gross Domestic Product, GDP growth rate of 3.00 Percent.

Advertisements

The parliament increased the budget estimate by the sum of N505, 607,317,942 from the estimate of N13, 082, 420, 568,233 presented to the joint sitting of National Assembly by President Buhari on October 8, 2020.

Present to witness the ceremony were Vice President Yemi Osinbajo; President of the Senate, Ahmad Lawan; Speaker, House of Representatives, Femi Gbajabiamila; Secretary to Government of the Federation (SGF), Boss Mustapha; Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed among other government officials.

Advertisements

#Newsworthy

N140BN: Fintiri signs 2021 budget into law

Advertisements

Speaking at the ceremony in Yola, Fintiri said that 52 per cent of the budget was for capital expenditure, while 48 per cent was for recurrent expenditure.

Gov. Ahmadu Fintiri of Adamawa on Saturday signed the state N140 billion 2021 budget into law.

According to him, the budget is the first of its kind in the history of the state.

“This is cristal budget of stabilisation which will see to more value addition, more infrastructure development to our people and human capital development for the sustainace of our democracy.“Democracy without physical infrastructure will not carry us anywhere.

“For us to develop the democracy, we need to work tirelessly with the available resources.

Advertisements

“In 2020 we witnessed lots of economic challenges due to COVID-19 pandemic,” he said.
Fintiri assured that the people would witness lots of projects like road, schools, hospitals and the human capital development in 2021.

He added that a large chunk of the budget was set aside for women and youth empowerment to train them to became better citizens of the society.

Advertisements

#Newsworthy

N12.658t: Nigerian govt makes provision for 2021 budget

Advertisements

The Federal Government hopes to have a budget expenditure framework projected at N12.658 trillion for the 2021 fiscal year.

This is contained in the latest Economic Outlook by the Ministry of Finance, Budget, and National Planning.

The document, signed by the Minister of Finance, Budget, and National Planning, Ahmed Zainab, indicated that the figure represented a 17.2 per cent increase of the revised N10.8 trillion 2020 budget.

The aggregate revenue available for the budget for next year is projected at N7.498 trillion while the aggregate expenditure level is projected to be N12.658 trillion.

Advertisements

On the other hand, the aggregate expenditure is made up of Statutory Transfers of N481.41 billion, Debt Service of N3.124 trillion, and Sinking Fund of N220 billion.

Recurrent (non-debt) expenditure is also put at N5.746 trillion and Capital expenditure (exclusive of capital in Statutory Transfers) has N3.086 trillion.

Of the capital expenditure, the Ministries, Department, and Agencies (MDAs) Capital is N1.485 trillion.

Minister of Finance, Budget, and National Planning, Ahmed Zainab

The ministry explained that the projections were in accordance with the government’s 2021-2023 Medium-Term Expenditure Framework and Fiscal Strategy Paper.

Advertisements

It added that the key parameters for the 2021-23 fiscal framework were set in line with the global and domestic economic outlook.

Meanwhile, the Statutory Transfers of N481.41 billion consist of allocations to the National Judicial Council (NJC), Universal Basic Education Commission (UBEC), Niger Delta Development Commission (NDDC), National Assembly (NASS), Independent National Electoral Commission (INEC), National Human Rights Commission (NHRC), Public Complaints Commission (PCC), North East Development Commission (NEDC) and Basic Health Care Provision Fund (BHCPF).

These arms of government and agencies, the ministry said, are expected to apply the funds transferred strictly to accomplish the purposes for which they are intended.

All beneficiaries of statutory transfers were also required to provide the BOF periodic reports of the allocation and expenditure of the funds received, in compliance with the Fiscal Responsibility Act (2007).

Advertisements

“The N3.124 trillion in respect of Debt Service is made up of N2.183 trillion for Domestic Debt, and N940.89 billion for Foreign Debt. Additionally, N220 billion is provisioned for the Sinking Fund to retire maturing loans,” the outlook read.

It noted that the aggregate sum of N3.086 trillion, which excludes capital component of statutory transfers, has been set aside for six sundry critical capital expenditures.

They include N1.485 trillion for MDAS’ capital expenditure, N234.19 billion for Capital Supplementation, and N337.06 billion for Grants and donor-funded projects.

Others are N20 billion for Special Intervention Programme, N4335.59 billion for GOEs, and N674.11 billion for Multi-lateral and Bi-lateral Project-tied loans.


#Newsworthy…

2020: Enugu govt signs N146.3bn revised budget

Advertisements

The Enugu State Governor, Ifeanyi Ugwuanyi has signed into law the revised 2020 budget of N146.3billion.

The budget represents a 13.6 per cent decrease after a downward review from N169.5 billion initially proposed in December 2019.

Out of the budget size, the capital expenditure stands at N69. 7billion while the recurrent expenditure is N76.5billion, representing 48 per cent and 52 per cent respectively.

Advertisements

Governor Ugwuanyi signed the budget on Wednesday in the presence of his deputy, Mrs Cecilia Ezeilo, the Speaker of the House, Edward Ubosi, members of the State Executive Council, among other top government functionaries.

While thanking the lawmakers for their diligent and expeditious passage of the budget, the governor said he is optimistic that the budget of responsive and accountable governance will enable his administration to consolidate its developmental agenda.

File photo of Enugu State Governor, Ifeanyi Ugwuanyi

The budget was revised in response to the negative consequences of the outbreak of COVID-19 on the economy.


#Newsworthy…

Bayelsa govt reduces 2020 budget to N183bn

Advertisements

The Bayelsa Governor, Douye Diri, has cut the state’s 2020 budget by 24 percent.

The bill, which was N242bn, has been cut to N183bn.

Governor Diri said that the decision was reached following a drop in monthly revenue occasioned by the COVID-19 pandemic.

He disclosed this on Tuesday while speaking at a Public Forum to review the 2020 Consolidation for Prosperity Budget in Yenagoa.

Advertisements

He said the anticipated projections of the initial budget had to be re-evaluated to reflect the current realities of the global economic downturn occasioned by the devastating impact of the COVID-19 challenge.

He also noted that the sharp drop in the international price of crude oil from $55 per barrel benchmark to $20 crippled the country’s economy that is largely dependent on proceeds from oil.

According to the governor, all the parameters used in the previous budget, which was presented to the state assembly on April 22, had been overtaken by the effects of the health crisis.

“The 2020 Consolidation for Prosperity Budget was passed with certain assumptions that have been negatively altered due to the COVID-19 pandemic.

Advertisements

“The effect of the global lockdown has resulted in low demand for crude oil, which is Nigeria’s major earner. The price of oil dropped to as low as $20 per barrel in some months as against the $55 per barrel benchmark.

“Consequently, there is need to revise the budget to face the existing realities. The proposed budget size is now N183.16billion as against N242.19billion that was in the original budget”, Governor Diri added.

Reacting to questions, the governor stressed that given his administration’s priority on workers’ welfare, the slashing of the budget would not affect civil servants’ salaries.

“From the revised budget figure, you can see that nothing affected the personnel cost and salaries. There is no intention to reduce workers salaries. We should even be thinking of increasing the salaries once our resources improve”, he further added.


#Newsworthy…

2020: Governor Badaru of Jigawa signs revised budget

Advertisements

Jigawa State Governor, Badaru Abubakar, while signing the revised 2020 Budget into law on July 28, 2020.

Jigawa State Governor, Badaru Abubakar, has signed into law the revised 2020 budget of N124.357 billion which was recently passed by the State House of Assembly.

He assented to the revised budget on Tuesday at the Government House in Dutse, the state capital.

While signing the budget, the governor said the 2020 budget size was reduced by 19 percent from N153.920 to N124.357 billion.

He explained that this represented a decrease of N28.56 billion, noting that the review became necessary due to the effect of the coronavirus pandemic on the economy.

Advertisements

The governor added that the 2020 local government budget has also been reduced from N72.5 billion to N56.2 billion, representing a drop of N16.300 billion.

According to him, COVID-19 has come with many challenges ranging from revenue declining, additional spending on healthcare, and drop of oil prices which necessitated the review of the 2020 Appropriation Bill in the state.

Governor Abubakar thanked the speaker and members of the Jigawa State House of Assembly, as well as his technical team for their dedication and hard work which led to the passage of the revised 2020 budget into law within a short period of time.

He also commended the people of Jigawa for their prayers and support to the government of the state.


#Newsworthy…

2020: Gombe gov, Yahaya signs N107.3bn revised budget.

Advertisements

The Gombe State Governor, Inuwa Yahaya, has signed the revised N107.3billion 2020 budget into law.

Signing the budget on Monday, Governor Yahaya said the downward review of the budget was due to the global economic shocks occasioned by the COVID-19 pandemic which has affected national and personal incomes.

According to him, despite the downwards review of the budget, the state government ensured that health, education, agriculture and other critical sectors remain the top priorities of the state.

The governor explained that the health sector’s budget, in particular, has been increased as a demonstration of the administration’s resolve to combat the virus and its socio-economic impact on the lives and means of livelihood of the people.


#Newsworthy…

Advertisements

Senate ask FG to present 2021 budget before end of September

Advertisements

President of the Senate, Ahmad Lawan, on Tuesday, urged the Executive arm of Government to work on the estimates for the 2021 budget to ensure its timely presentation to the National Assembly by the end of September this year.

Lawan stated this in his remarks after referring President Muhammadu Buhari’s 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper request to the Senate Committees on Finance; and National Planning for further legislative work.

The Senate President while charging both Committees to engage the Ministry of Finance, Budget, and National Planning on the MTEF/FSP request, stressed the need for the panel to lend its support where necessary to Revenue Generating Agencies towards meeting expected revenue targets.

A file photo of the Senate President, Ahmad Lawan, during plenary at the upper chamber of the National Assembly in Abuja.
The Committees were given four weeks to report back to the Senate.

“The request of Mr. President C-in-C is referred to the two committees, Senate Committees on Finance; Budget and National Planning, with Finance as the lead Committee.

Advertisements

“This Senate is giving the Committee four weeks within which to work very closely with the Ministry of Finance, Budget, and National Planning, and particularly engagement with the revenue-generating agencies where we are expecting them to meet their targets.

“We need to ensure that they have all the support that they require from the National Assembly, particularly the Senate to meet their targets.

“Meanwhile, the executive should continue to work on the preparations for the 2021 budget, and by this, we are also equally committed to ensuring that we receive the budget estimates at the end of September and that we are able to consider the budget and get it passed before the end of December to repeat what we did for budget 2020,” Lawan said.


#Newsworthy…

N12.66trn: Buhari proposes 2021 budget

Advertisements

..Pegs budget on 40 dollars per barrel Oil Benchmark


President Muhammadu Buhari has announced that the Nigerian Government’s aggregate expenditure for the 2021 financial year is N12.66 trillion

He also said that the 2021 budget would be based on an oil benchmark of $40 per barrel of crude oil.

President of the Senate, Ahmad Lawan on Tuesday read on the floor of the Senate, the 2021 – 2021 Medium Term Expenditure Framework and Fiscal Strategy Paper from President Muhammadu Buhari.

According to the document, the N12.66 trillion include “GOEs’ expenditure of N1.35 trillion and grants/donor-funded programme amounting to N337.06 billion.

The 2021 expenditure estimates, according to the MTEF/FSP document, include the statutory transfer of N481.41 billion, non-debt recurrent expenditure of N5. 75 trillion, including N350 billion for the recurrent component of the Special Intervention Programme.

Advertisements

Debt Service is estimated at N3.12 trillion while N220 billion is for Sinking Fund. Also the sum of N4.31 trillion is provided for personel and pension. N3.33 trillion is for capital expenditure.

Budget deficit is projected at N5.16 trillion to be funded by fresh loan of N4.28 trillion.

In the letter attached to the document, President Buhari said the presentation of the 2021-2023 MTEF/ FSP was to give the lawmakers enough time to perform its important constitutional duty of reviewing the framework.

The letter read in part: “It is with pleasure that I forward the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the kind consideration and approval of the Distinguished Senate.

Advertisements

“Let me seize this opportunity to express my deep gratitude for the cooperation, support and commitment of the leadership and distinguished members of the Senate in our collective efforts to sustain the restoration of the January – December financial year.

“In line with our commitment, we have worked very hard to achieve and earlier submission of the MTEF/FSP. This is
to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.

“I herewith forward the 2021 – 2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021 – 2023 MTEF/FSP. I seek the cooperation of the National Assembly for expeditious legislative action on the submission.”

Advertisements

President Buhari expressed concern on the effect of the rampaging pandemic, Coronavirus on revenue target.

But the document revealed that the federal government was determined “to using innovative ways to raise revenues required for financing its expenditures and diversifying its revenue sources thereby increasing the Revenue to GDP ratio. The medium-term target for this remains 15 per cent. ”

It noted that “higher revenue collections will enable Government to effectively deliver public services, enhance infrastructure investment and mitigate the health and economic effects of the COVID-19 Pandemic.”


#Newsworthy…

[Nigeria] PMB sign 2020 revised budget friday

Advertisements

Nigeria’s President Muhammadu Buhari will sign into law the revised 2020 budget for the country on Friday, a presidential aide has said.

“President @MBuhari will tomorrow, sign into law the revised 2020 budget passed by the National Assembly last month,” Bashir Ahmed tweeted on Thursday evening.

The National Assembly in June passed an increased budget for 2020 as Nigeria tackles the new coronavirus pandemic and a sharp fall in the price of oil – Nigeria’s biggest source of revenue from export.

The budget, which was proposed by the federal government sought to reduce Nigeria’s 2020 budget from N10.6 trillion to N10.5 trillion, was, however, increased by the lawmakers.

Advertisements

The budget was increased to N10.8 billion, higher than the initial approved budget in December 2019.

The review of the budget was necessitated by the impact of the COVID-19 which has adversely affected the oil price and, by extension, the revenue projections of the government.

From the revised budget, N422 billion was earmarked for statutory transfers, while N4.9 trillion was for recurrent expenditure.

Advertisements

Capital expenditure will take N2.4 trillion and N2.9 trillion, about a quarter of the budget, will be used to service debt.

N500 billion was earmarked as intervention funds for the fight against COVID-19, while the health sector got N186 billion allocation.

The budget assumes oil production at 1.9 million barrels per day (bpd). Oil prices have recovered from a 20-year low of just under $16 per barrel hit in March.

However, Nigeria has also agreed to limit its oil output to 1.412 million bpd as part of a deal with the Organization of the Petroleum Exporting Countries and other producers. That agreement was extended through the end of July.


#Newsworthy…

Advertisements

Storyline: Senate passes revised 2020 Budget worth N10.8trn

Advertisements

Members of the Senate Chamber of the National Assembly have passed the revised 2020 budget of N10,805,544,664,642.

The lawmakers passed the budget during plenary on Thursday, a day after members of the House of Representatives approved the same figure.

A breakdown of the figure shows that the sum of N2,488,789,433,344 is for capital expenditure and recurrent non-debt expenditure has N4,942,269,241,984.

The executive also allocated N422,775,979,362 for statutory transfer, while N2,951,710,000,000 was budgeted for debt service.

More to follow…


#Newsworthy…

Advertisements

Budget’20: Senate rise oil price benchmark to $28.


The Senate on Tuesday increased the 25 dollars per barrel oil price benchmark proposed by the executive in the revised Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to it for approval.
The upper chamber made the increase on the oil price benchmark to 28 Dollars.

The resolution was sequel to the consideration and adoption of report of its Committee on Finance mandated to work on the revised MTEF/FSP documents by the executive during plenary.

The Chairman of the Committee, Sen. Solomon Olamilekan, presented the report.

Olamilekan in his submission said the increase effected on the oil price benchmark was as a result of the recent upward trend of the crude oil market which stood at 38 Dollars per barrel with a very strong expectation that the price would rise to as high as 40 to 45 Dollars per barrel.

Advertisements

The senate also reduced from 1.9 million barrel per day to 1.8 million barrel per day oil production proposed by the executive in the MTEF/FSP documents.

This is as it declared monies kept in the Natural Resources Development Accounts as waste.

Advertisements

However, other critical parameters including the exchange rate of N360 to a US dollar, 14.43 inflation growth rate and 4.42 Gross Domestic Product (GDP) growth rate were retained.

Other assumptions cum proposals retained include N5.09 trillion Federal Government’s revenue, N10 .51 trillion proposed expenditure, N4.95 trillion fiscal deficit, N4.17 trillion new borrowings (including Foreign and domestic Borrowings).

Advertisements

The Senate also retained the critical components of the proposal as presented by the executive with adoption of N10.51 trillion as total expenditure, N4.93 trillion as total recurrent, N2.83 trillion for personnel cost and N2.23 trillion for capital expenditure.

In his remarks, President of the Senate, Ahmad Lawan urged the Senate Committee on Privatisation to liaise with the Bureau of Public Enterprise (BPE) in ensuring that the projected N260 billion from proceeds of privatised agencies was realised and accordingly used to fund the budget.

Advertisements

He frowned at some of the special accounts being kept by the executive, particularly the Natural Resources Development Accounts.

According to him, such accounts at this time of scarcity of funds to finance the budget are not all that necessary.

Advertisements

“Keeping monies in Natural Resources Development Accounts is more of waste than serving critical purposes,” he said.

He thereafter adjourned sitting of the Senate to Tuesday, June 9, for consideration and possible passage of the revised N10.509 trillion 2020 budget.


#Newsworthy…

Advertisements
Advertisements

VAT revenue increases to N339B in first quater


The federal government has generated additional N30.46 billion in the first quarter of the year (Q1 2020) based on the hike in Value Added Tax (VAT) from five per cent to 7.5 per cent that became effective from February 1, according to data released yesterday by the National Bureau of Statistics (NBS).

The NBS figures were released just as the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, met with the National Assembly leadership in Abuja yesterday to discuss the proposed cut in the 2020 Budget.

The cut, which amounted to N71.5 billion, was subject of economic analysts’ conversation with Media last night as many of them saying the reduction should reflect the country’s economic realities.

With the extra cash, VAT receipts closed at N338.94 billion in the first quarter of the year, from N308.48 billion in Q4 2019.

Advertisements

The improved performance represented a 9.87 per cent increase in value quarter-on-quarter.

It also represented a 15.66 per cent rise (year-on-year), when compared to the N293.04 billion realised in Q1 2019.

According to the sectoral distribution of VAT data for Q1 2020, which was published by the statistical agency, professional services generated the highest amount of VAT with N38.30 billion and closely followed by manufacturing that generated N37.37 billion.

Advertisements

Commercial and trading generated N17.19 billion while mining recorded the least amount of N61.83 million.

Textile and garment industry and local government councils recorded N306.05 million and N319.04 million respectively.


#Newsworthy…

Advertisements
Advertisements

Just in: NASS meet with finance minister over 2020 budget amendment. [Nigeria]


The Leadership of the National Assembly on Thursday met with the Minister of Finance, Budget and National Planning to be briefed by the latter on the plan by the Federal Government to amend the N10.59 trillion 2020 budget passed by the National Assembly in December last year.

The meeting which had in attendance principal officers from both chambers was presided over by the President of the Senate, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila.

The Senate President, in his welcome address, told the Executive arm of Government to ensure that the interest of Nigerians remains protected in the proposed cut to the 2020 national budget.

Lawan also expressed the willingness of the Federal lawmakers to expeditiously consider the proposed amendment to the 2020 budget which the Minister said would be presented to the National Assembly by next week.

“The budget amendment is very important, but I believe that when we are faced with this kind of challenge (COVID-19 pandemic), it is an emergency and we should do everything and anything possible to fast track the passage and implementation of the government intervention that is so critical and crucial at this stage.

Advertisements

“I believe that we shouldn’t delay it any longer. Next week, and I will suggest the early part of next week, we should have that document(MTEF) ready so that we can consider it alongside the budget. It is supposed to be the tonic of what Nigerians are waiting for.

“We have listened to the various adjustments you have made to avoid going into recession. However, to avoid going into a deeper recession, I think we need to do a little bit much more.

“After this meeting with the leadership, I suggest that you engage with our relevant committees in the Senate and House of Representatives to look at the nitty-gritty that would be considered more in detail at the presentation level.

Advertisements

“On the whole, let me assure you that the National Assembly and Executive arm are on the same page, and that is to say that we will work to ensure that we have a budget 2020 amendment that will address the needs of the people of this country.

“One thing is that the net public expenditure must be targeted at net maximum performance for the benefit of the people of this country.

“In other words, we must come up with an amended budget that is operable and favorable to Nigerians,” Lawan said.

Advertisements

In his remarks, the Speaker of the House of Representatives, Femi Gbajabiamila, called on the Federal Government to adopt a feasible benchmark in the proposed amendment to the 2020 budget.

“The benchmark is so critical and so important because once you passed the law, it becomes difficult to adjust that benchmark, and then what happens to the excess?

“We have always had problems with the Excess Crude Account, potentially an account which has no backing of the law. So, let’s even assume that the price remains static at $35, which means we have $10 going to the Excess Crude Account which we have no control over in terms of spending, that is why we guard that benchmark price very jealously.

Advertisements

“Is there a possibility of having a provisio built-in in the budget…So that there can be an automatic kick in if the benchmark price goes beyond $26 or $27. We want you to explore that possibility.

“So, I think you should study the market and see what happens next week by the time you present the adjusted budget,” Gbajabiamila said.

Speaking on Nigeria’s debt profile, the Speaker said, “I would also want to address the issue of our deficit and tie it with the issue of debt relief. I’m not sure I heard any presentation on how much we owe and how much we are paying back in this budget.

Advertisements

“The reason I asked is that at the moment, I believe, for want of a better word, some of our creditors are very vulnerable right now. And depending on how you package your case, I believe they should be the ones coming to beg you to take debt relief, if not outright cancellation.”

Earlier, the Minister of Finance, Zainab Ahmed, while briefing the leadership of the National Assembly said, “the US$57 crude oil price benchmark approved in the 2020 budget is no longer sustainable.”

The minister said further that: “it is necessary to reallocate resources in the 2020 budget, to ensure the effective implementation of required emergency measures, and mitigate the negative socioeconomic effects of the COVID-19 pandemic.”

Advertisements

Ahmed stated that in line with the global economic outlook and relevant domestic considerations, the assumptions underpinning the 2020-2022 Medium Term Expenditure Framework (MTEF) and the 2020 Budget was revised to slash crude oil benchmark price from US$57 per barrel to US$25 per barrel; reduce crude oil production benchmark from 2.18 million barrels per day to 1.9 mbpd.

She added that the federal government also adjusted the budget exchange rate to N360/US$1; and reduced the upfront fiscal deductions by the Nigerian National Petroleum Corporation (NNPC) for mandated Oil and Gas sector expenditures by 65 percent from N1.223 trillion to N424 billion.

She disclosed that the amount available for funding the 2020 Budget is now estimated at N5.548 trillion, down from N8.419 trillion, a revised revenue estimate which is 34 percent (N2.87 trillion) lower than what was initially approved.

Advertisements

Federal Government’s aggregate expenditure budget was slashed by N88.412 billion; Statutory Transfer from N560.47 billion to N397.87 billion; and Overhead costs of Ministries, Departments and Agencies of Government from N302.43 billion to N240.91 billion.

Debt Service provision was, however, increased from N2.453 trillion to N2.678 trillion.

On Provision of N500 billion for COVID-19 Intervention Fund, the Finance Minister in her presentation explained that N263.63 billion will be sourced from Federal Government Special Accounts, N186.37 billion from Federation Special Accounts and the balance of N50 billion expected as grants and donations.

Advertisements

According to her, “the sum of N186.37 billion will be applied toward COVID-19 interventions across the federation, while an additional N213.60 billion was provided in the Service Wide Votes for COVID-19 Crisis Intervention recurrent expenditures.”

She disclosed that while a total of N100.03 billion was provisioned in the Intervention Fund for new capital spending, the Federal Government carried out a cut in capital expenditures for Ministries, Departments and Agencies of Government from N1.564 trillion to N1.262 trillion.


#Newsworthy..

Advertisements
Advertisements

Buhari approve revised 2020 budget. [Nigeria]


The Federal Executive Council has approved the revised Medium Term Expenditure Framework and the 2020 budget.

The revised estimates are based on $25 per barrel of crude oil at a production rate of 1.94 million barrels per day.

Earlier, Minister of Finance, Zainab Ahmed had hinted that the government would make the revision based on declining international oil prices and the impact of the coronavirus pandemic.

Ms. Ahmed, who is also the Minister of Budget and National Planning, had told Reuters the government would drop the oil benchmark from the initial $57 per barrel to $30.


#Newsworthy…

Advertisements
Advertisements

Buhari orders review of 2020 budget.


Nigeria President Muhammadu Buhari on Thursday directed a review of the country’s budget for 2020.

The Presidency said the budget review, alongside other policy implementations, is to reflect current realities in the oil sector and to respond to emerging threats pose by cases of coronavirus.


Other implementations directed by Buhari include prioritisation of the health sector infrastructure to be able to deal with coronavirus and securitization of government debt.

Others include design and institutionalization of a revenue stabilization program and cost-cutting governance.


#Newsworthy…

Budget 2020: Cafes, Shops’ rates scrapped.


Tens of thousands of England’s retail, leisure and hospitality firms will not pay any business rates in the coming year, the chancellor has announced.

Companies with a rateable value of less than £51,000 will be eligible for the tax holiday, Rishi Sunak said.

The measure applies to firms including shops, cinemas, restaurants and hotels.

It is part of a package of “extraordinary” measures to support the UK economy in the face of disruption from the coronavirus outbreak.

“That is a tax cut worth over £1bn, saving each business up to £25,000,” Mr Sunak said.

Business rates are a tax on properties that are used for commercial purposes, and are charged based on an estimate of what it would cost to rent the property on the open market: the “rateable value”.

Mr Sunak described the business rates holiday as an “exceptional step” that would benefit museums, art galleries, theatres, caravan parks, gyms, small hotels, sports clubs and night clubs, all of whom will be hard hit if customers stay away to slow the spread of coronavirus.

Businesses have been calling for a review of business rates for several years, arguing they make it hard for bricks and mortar retailers to compete with online rivals.

The chancellor said business rates as a whole would be reviewed later in the year.

The head of retail and consumer at Pinsent Masons, Tom Leman, said the announcement would be “extremely welcome news” for small businesses.

“On the basis the coronavirus is not a long-term issue for these businesses, it is crucial that they have the liquidity to see them through the worst.

“This will definitely help the cause and hopefully see many of them come out the other side ready to benefit from the increased spending power prompted by the money people are currently saving on their discretionary spend.”


#Newsworthy…

Taraba govt set to spend N100b on works, health, others ..


The Taraba State government is to spend over N100billion on works, health, education, provision of portable water and other critical sectors of the economy in a bid to achieved accelerated and holistic development in the state.


The commissioner, state Ministry of Budget and Planning, Mr Solomon Elisha disclosed this at a press briefing in Jalingo on the 2020 approved budget estimates and capital expenditure on Friday.

Elisha said that while the state government plans on spending over N76billion on works, housing and transport, the health sector in the state is expected to gulp almost N15 billion while education and water resources will gulp over N10billion and over N3billion respectively.


He further disclosed that “the budget of accelerated development will pay attention to all critical sections of the economy in the hope of bringing uncommon development to the state in terms of human capacity and infrastructural development”.

Elisha said that the budget is predicated on the assumptions that the national inflation rate, GDP growth, oil production benchmark, oil price benchmark stand at 9.43%, 3.60%, 2.3million and N305/ $, respectively.

The commissioner, state Ministry of Budget and Planning, Mr Solomon Elisha


The commissioner who disclosed that the total budget stands at over N215 billion, said that the recurrent expenditure will only take 33.52% while the capital will take the chunk of 66.48% respectively.

Elisha said the total budget stands at Two Hundred Fifteen billion, Eight Hundred and Twenty Three million, Five Hundred and Seventy-Six Thousand, Eight Hundred and Ten (215,823,576,810) Naira only, and is aimed at completing the ongoing projects and ensure that new ones initiated are also worked on and completed in good time.


#Newsworthy…

2020 Finance Act would stimulate the economy – FG


Vice-President Yemi Osinbajo on Saturday asserted that the Finance Act 2020 would stimulate the Nigerian economy and put the country on the path of geometric economic growth.

Osinbajo made the assertion at the Inspiration Conference 2020 of the Redeemer’s Men Fellowship (Lagos Regions) in Lagos.

The conference had as its theme: “Galvanised for Geometric Growth”.


He said the bill, which was signed by President Muhammadu Buhari on Jan. 13, was aimed at shoring up revenue for all levels of government to meet up with their expenditure.

This, he said, was in addition to it supporting Small and Medium Enterprises (SME) in the country.


“The challenges of growing the economy border on creating an environment favourable to businesses and low revenue generation,” Osinbajo said.

He said that the 2020 budget of N10.6 trillion has a deficit of N2.2 trillion, “so it is clear that we are running a fairly large deficit”.


“The sources of revenue are oil proceeds and taxes, and most states do not generate enough revenue to meet their financial expectations,” Osinbajo said.

He cited Adamawa, Benue and Ekiti as some of the states with very low Internally Generated Revenue (IGR), too inadequate to cater for their expenditure.


The vice-president justified the increment of the Value Added Tax (VAT) from 5 per cent to 7.5 per cent, noting it to be very low when compared to other African countries.

“Ghana has 12.5 per cent; Cameroun has 19.25 per cent; Mexico with 16 per cent; South Africa at 15 per cent and Egypt at 14 per cent.


“To make things easier for the common man, we have exempted 16 classes of food items, tampons, sanitary towels, and tuition fees from nursery to tertiary.

“Also, before the Finance Act, many companies operating in the country without physical presence escaped taxation.


“Most digital companies made significant revenue from e-commerce, online advertising and the likes, but were not taxed.

“But now, once you have a significant economic presence in Nigeria, but reside anywhere around the world, you are eligible to pay tax,” he said.


Osinbajo expressed confidence in the Nigerian economy, maintaining that the government would continue to provide the enabling environment for businesses to thrive.

He explained that in spite of the perceived low growth rate, the Nigerian economy was still relatively bigger when compared with other African economies.


“Rwanda has a Gross Domestic Product (GDP) of $8.7 billion, while FCT, Akwa Ibom, Lagos, Rivers and Delta have growth rates of $29.9billion, $14 billion, $90 billion, $14.2 billion and $11.2 billion respectively.

“Even Ghana is at $65.5 billion and is less than Lagos,” he said.


He stated that the potential of the Nigerian economy has been boosted by agriculture, manufacturing, creative industry, technology and ICT.

“Today, we produce an estimated 7.3 million metric tonnes of rice compared to 5 million metric tonnes in 2015.


“Today, people are using technology to attract investments in agriculture through crowdfunding.

“There are incredible new ways of investing in agriculture in Nigeria, where companies are raising funds for farmers and farming, and such platforms should be invested on,” he said.

Vice-President, Prof. Yemi Osinbajo


Osinbajo also called for more collaboration between the government and the private sector to bridge the infrastructural deficit.

“The Nigerian Liquefied Natural Gas Company (NLNG) and Dangote Group have already keyed into this, while 10 other companies have applied to execute 19 road projects of about 800km,” he said


#Newsworthy…

Finance Bill: Food Items, Tuitions, Others exempted from VAT


The Presidency on Sunday disclosed that some basic daily needs were exempted from the Value Added Tax (VAT) to allay fears on the likely impact of the new VAT on low-income persons.

The Presidency also highlighted the benefits of the Finance Act 2019 for Nigerians and businesses in lower and middle levels of the economy.

President Muhammadu Buhari last week signed the Finance Bill with one of the components being the hike of VAT rate by 2.5 percent.


However, despite the protest by some Nigerians on the increase, Nigeria’s VAT rate of 7.5 percent remains the lowest in Africa and one of the lowest in the world.

In South Africa, the VAT rate is 15 percent; Ghana (12.5 percent); Kenya (16 percent); Egypt (14 percent); Rwanda (18 percent) and Senegal 18 percent).


A statement from the Office of the Vice President, signed by his spokesman Laolu Akande, listed the items excluded from the new VAT rate as “Basic food items – additives (honey), bread, cereals, cooking oils, culinary herbs, fish, flour and starch, fruits (fresh or dried), live or raw meat and poultry, milk, nuts, pulses, roots, salt, vegetables, water (natural water and table water).

“Also exempted are locally-manufactured sanitary towels, pads or tampons, services rendered by microfinance banks and tuition relating to nursery, primary, secondary and tertiary education.”


Besides, the Presidency noted that the larger chunk of the VAT revenue will be shared to states and local government areas.

It said: “Under Nigeria’s revenue sharing formula, 85 percent of collected VAT goes to states and local government areas.


“This means that the bulk of additional VAT revenues accruing from the increase will go towards enabling states and local government areas meet their obligations to citizens, including the new minimum wage as already noted by governors.”

The Presidency added: “The new Finance Act exempts Businesses with turnover below 25 million from VAT payments.


“Under the new law small companies – companies with less than N25 million in annual turnover are charged Zero Companies Income Tax (CIT).

“CIT for firms with revenues between N25 and N100m (described in the Act as “medium-sized” companies) has been reduced from 30 percent to 20 percent.


“Amongst other benefits, the law will consolidate efforts already made in creating the enabling environment for improved private sector participation and contribution to the economy as well as boost states’ revenues,” the statement said.

The statement also said the Act has set out a couple of objectives, which it said include “promoting fiscal equity by mitigating instances of regressive taxation; reforming domestic tax laws to align with global best practices; Introducing tax incentives for investments in infrastructure and capital markets; supporting Micro, Small and Medium-sized businesses in line with the administration’s Ease of Doing Business reforms; raising revenues for federal, state and local government areas.


The statement also revealed that the Finance Act 2019 has extended the list of goods and services exempted from VAT.

The additional exemptions include the following: “Large companies – with annual turnover greater than N100m – will continue to pay the standard 30 percent CIT


“The new Act includes a provision that grants to all companies engaged in agricultural production in Nigeria an initial tax-free period of five years, renewable for an additional three years.

“The new Act also provides incentives to promote tax compliance through bonus reductions in CIT for early remittance of two percent bonus for medium-size companies and one percent bonus for other companies.”


On Personal Income Tax Act (PITA), the statement said: “The new Act now includes electronic mail as an acceptable form of correspondence for persons disputing assessments by the tax authorities.

“Contributions to Pension and Retirement Funds, Societies and Schemes are now unconditionally tax-deductible.


“With the new Act, the N50 Stamp Duty charge is now applicable only to transactions amounting to N10,000 and above, a significant increase on the former threshold of N1,000.

“The new Act also expands the list of items exempted from stamp duty.

President Muhammadu Buhari


“To reduce unfair advantages previously conferred on imported goods at the expense of locally manufactured ones, certain imported goods are now subject to excise duties similar to locally-manufactured goods.”

The new VAT regime will go into effect on February 1.


#Newsworthy…

OMG! SERAP, EiE, BudgIT dragged Moh’d Buhari to court over N37Bn.

…stop Buhari and Zainab Ahmed


Socio-Economic Rights and Accountability Project (SERAP), BudgIT, Enough is Enough (EiE) and 583 concerned Nigerians have dragged President Muhammadu Buhari and Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed before the Federal High Court, Abuja over the proposed N37 billion allocated for the renovation of the National Assembly complex.

In the suit number FHC/ABJ/CS/1633/2019 filed last week at the Federal High Court, Abuja by Kolawole Oluwadare and Opeyemi Owolabi, they described the N37 billion allocated for the renovation of the National Assembly as “self-serving, wrongful, illegal and unconstitutional expenditure of public funds,” which they said would translate to “less money for educating millions of out-of-school Nigerian children, providing access to clean water and healthcare to Nigerians including the elderly, or repairing the country’s roads and bridges.”


The groups said: “Spending N37 billion to renovate the National Assembly complex is self-serving, wrongful, illegal and unconstitutional expenditure of public funds, as it means less money for educating millions of out-of-school Nigerian children, providing access to clean water and healthcare to Nigerians including the elderly, or repairing the country’s roads and bridges.

“The National Assembly complex should be a safe and conducive environment for those who work there, but spending ₦37 billion to renovate the place is not commensurate with the constitutional commitments to public services and goods, decreasing public revenues and increasing level of debts as well as the poor economic and social realities in the country.”


They are therefore seeking an order of the court to “restrain and stop President Muhammadu Buhari and Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning from releasing N37 billion allocated for the renovation of the National Assembly complex to the Federal Capital Development Agency and the National Assembly until an impact assessment of the spending is carried out.”

They also asked the court to “restrain, prevent and stop the Senate President, Dr Ahmad Lawan; Speaker of the House of Representatives, Mr Femi Gbajabiamila and the Federal Capital Development Agency from demanding or collecting the N37 billion earmarked for the renovation of the National Assembly complex until an impact assessment of the spending on critical sectors and access to public goods and services, is carried out.”


The groups argued that “the defendants are public officers who have sworn the constitutional oaths of office to perform their respective duties in the interest of Nigerian citizens. The refusal of President Buhari to object to the Budget/Appropriation Bill containing a huge N37 billion on renovation of the National Assembly complex is a gross violation of the constitution and existing laws in Nigeria.”

The 583 plaintiffs include Bring Back Our Girls (BBOG) co-convener Aisha Yesufu; a former Lagos State (Eti-Osa Federal Constituency) House of Reps aspirant, Bankole Wellington also known as Banky W, Mrs Ayo Obe, Dr Abiola Akiyode-Afolabi, and Fisayo Soyombo.

They are seeking from the court: “A declaration that the N37 billion proposed, prescribed, voted and allocated for renovation of National Assembly Complex in the 2020 Nigerian National Budget via Appropriation Bill/Act 2019 is a breach of the Code of Conduct for Public Officers [Fifth Schedule Part 1] of the Constitution of Nigeria 1999 [as amended] and Oath of a member of the National Assembly; a declaration that the N37 billion proposed, voted and allocated for renovation of National Assembly Complex in the 2020 Nigerian National Budget via Appropriation Bill/Act 2019 signed is a breach of the defendants’ solemn constitutional obligations to know and follow constitutional oaths governing their conduct, including their duties of care to Nigerians to faithfully protect and defend the constitution and improve the well-being and welfare of Nigerians; an order of the court restraining, preventing and stopping President Buhari and the Minister of Finance, Budget and National Planning from releasing the N37 billion allocated for the renovation of the National Assembly complex to the Federal Capital Development Agency and the National Assembly leadership until an assessment of the impact of the spending on critical sectors like education, health, clean water and safe roads a revision to the allocation, is carried out; an order of the court restraining, preventing and stopping the National Assembly leadership from demanding or collecting the N37 billion proposed for the renovation of the National Assembly until an assessment of the impact of the spending on critical sectors like education, health, clean water and safe roads a revision to the allocation, is carried out; Any order(s) that the Honourable Court may deem fit to make in the circumstance of this suit.”

No date has been fixed for the hearing of the suit.


#Newsworthy…

Waziri Tambuwal ‘Thumbs Up’ to N202bn 2020 Sokoto Budget.

…Hails lawmakers for speedy passage


Sokoto State Governor Aminu Waziri Tambuwal has signed the 2020 appropriation budget of N202 billion into law as passed by the State House of Assembly.

The Governor, while appending his signature, applauded the Assembly members for their patriotism and unflinching commitment to the collective good of the people of the state.

According to him: “The Assembly, despite being controlled by the APC which is in the majority, has rallied round the government and supported it in the interest of serving the people of the state.”


He added that the lawmakers members have shown an uncommon patriotism to deliver democratic dividends to the people of Sokoto, and promised that their gesture shall not be misplaced.

Governor Tambuwal further applauded the Assembly for its speedy consideration of the budget in three weeks in line with the World Bank benchmark.


“The ball is now in the court of the executive to ensure proper implementation of the budget. We will work closely with the parliament in doing so,” he said.

Presenting the passed budget bill to the Governor, Speaker of the House, Rt Hon Aminu Muhammad Achida, noted that the Assembly was aware of the achievements of the administration despite financial constraints.


“The implementation of the 2019 budget has recorded a lot in the areas of education, health and rural development as well as many others.

“We will continue to accelerate the passage of any bill that is meant to improve the lots of the people of the state,” explained the Speaker, who said that the Assembly approved the budget during its sitting number 122.

Aminu Waziri Tambuwal


Achida commended the executive for “its record achievement in the modest improvement of internally generated revenue (IGR).

The Speaker affirmed that the budget 2020 of N202 billion presented to the Assembly by the executive earlier in the month has been approved in totality.


#Newsworthy…

Ogun government passes 2020 budget worth N449.97bn

…adjustments from the original bill


Ogun State legislators have passed into law a budget of N449.97bn for 2020.

The state’s House of Assembly made some adjustments from the original bill.

N.Rs learnt, the Assembly made an adjustment to the capital expenditure leading to an increment of N2.1bn for capital projects, the realignment moved the capital estimate from N269,132,349,884.46 to N271,232,349,884.46.


Governor Dapo Abiodun had presented the 2020 worth of N449.97bn to the House for approval.

According to the report, which saw to the adjustment in the recurrent expenses of six agencies, capital estimates of 19 others and the revenue targets of seven agencies; the recurrent expenditure was slashed from N154.896bn to N152.796bn, giving a reduction of N2.1bn in the recurrent expenditure, while the capital expenditure was moved from N269.132bn to N271.232bn giving an increment of N2.1bn.

The bill was thereafter read clause-by-clause before the lawmakers by the Speaker, after which the Majority Leader, Yusuf Sheriff, moved the motion for the third reading, seconded by the Minority Leader, Ganiyu Oyedeji and the Ag. Clerk of the Assembly, Deji Adeyemo did the third reading of the bill.

Passing the bill into law, Oluomo commended his colleagues and staff of the Assembly for their dedication and support which led to the timely passage of the bill.


#Newsworthy…