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President Buhari Presents N7.3trn 2017 Budget to National Assembly

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Budget 2017 year on cube with pencil and clock
  • President Buhari Presents N7.3trn 2017 Budget to National Assembly

President Muhammadu Buhari has presented a N7.298 trillion 2017 budget before the joint session of the National Assembly.

The presentation was made on Wednesday in Abuja with members of the senate and House of Representatives in joint session.

President Buhari said at the ceremony that government benchmarked the 2017 budget at N305 naira against one US dollar ($1) .

He said the budget is also predicated on daily crude oil production of at 2.2 million barrels and at $42 per barrel.

Buhari said that 2017 budget proposal is 20.4 per cent higher than that of the 2016 estimate.

He explained that for the country to effectively diversify from oil, it would need oil money for the movement.

Tagged budget of economic recovery and growth, he said, it was centered on agriculture and manufacturing.

He said that the budget would bring the nation out of recession.

The President said that government would continue to fortify “our defence’’ and spend on it till “all our enemies within and without are subdued.”

He said that government would retain N500 billion social intervention fund in the 2017 budget.

The Senate President, Bukola Saraki and the House Speaker, Dogara received President Buhari.

The President appealed to governors to make land easily accessible to farmers to boost food production.

The House of Representatives on Tuesday adopted the 2017 to 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) as President Muhammadu Buhari presents the 2017 budget estimates to a joint session of National Assembly.

The House fixed the exchange rate of Naira to a dollar at N350 as against the N290 recommended by the executive.

The House also concurred on the oil benchmark of 42.50 dollar per barrel with a proposed daily production of 2.2 million barrels per day.

Consequently, the House had mandated its joint committees on Finance, Appropriation, National Planning and Economic Development, Legislative Budget and Research and Aids, Loans and Debt Management to further scrutinise the document.

The News Agency of Nigeria (NAN) reports that Buhari had on Oct. 4, forwarded a request to the National Assembly seeking for approval of the 2017 to 2019 MTEF and FSP.

Moving the motion for the adoption of the MTEF/FSP, House Leader, Rep. Femi Gbajabiamila, said Section 11(2) of the Fiscal Responsibility Act, 2007, provides that “the MTEF shall be considered for approval with such modifications if any, as the National Assembly finds appropriate by a resolution of each House of the National Assembly”.

He further noted that Section 11 (3) of the FRA, 2007, states that “the MTEF shall contain, among other things, a macro-economic framework setting out the macro-economic projections for the next three financial years.

“The underlying assumptions for those projections and an evaluation and analysis of the macro-economic projections for the preceding three financial years”.

He said that some analysts forecasts that the shortage of forex supply may push exchange rate to as high as N350 to the dollar in the official and N500 in the parallel markets.

He recommended that “the budgeted exchange rate of N290 per dollar is unrealistic and should be moved to at N350 to encourage foreign capital inflows”.

On crude oil, he said that “the proposed oil benchmark is 42.50 dollars per barrel with a daily production of 2.2million barrels per day.

“Both seems to be realistic as oil is currently trading at about 50 dollar per barrel”.

According to him, though there is a steady improvement in oil prices, the government has chosen to play safe and benchmark oil price at 42.50 dollars, 45 dollars and 50 dollars for 2017, 2018 and 2019.

He explained that “with current price level of over 50 dollars per barrel and Nigeria’s current output at 1.9 million barrels per day, the estimates are conservative enough especially with OPEC output freeze last week”.

He maintained that the revenue target of N4.169 trillion and total expenditure of N6.687 trillion were audacious to move the country out of recession.

He said: “These are achievable only on effective combination of strong fiscal and monetary tools by government, increasing the tax base in the country.

“Curtailing militancy in the Niger Delta and injecting back looted funds, diversification of the country’s revenue sources, controlled government spending and strong anti-leakage and
anti-corruption drives.”

He stated that GDP was projected to grow at 3.02 per cent in 2017, while inflation was expected to moderate to 12.92 per cent.

Also consumption was projected to increase to N80.5 trillion.

“However, GDP growth at end of third quarter, 2016 slowed to 2.24 per cent, while inflation rose to an all-time high of 18.3 per cent.

“These budget growth levels in GDP and inflation are not achievable in 2017.”

NAN also reports that President Buhari is expected to present a proposed budget of N7.28 trillion for the year 2017 at a joint session of both chambers of National Assembly on Wednesday.

The proposed budget represents an increase of ‎about 19.95 per cent over the 2016 Appropriation of N6.07 trillion.

NAN

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Netanyahu Stands Firm as US Halts Bomb Shipment Over Rafah Invasion Warning

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Netanyahu

Amidst escalating tensions between Israel and the United States, Israeli Prime Minister Benjamin Netanyahu has adopted a defiant stance following the US decision to halt a shipment of bombs and warned against Israel’s potential invasion of the southern Gaza city of Rafah.

In a bold statement, Netanyahu declared, “If we have to stand alone, we will stand alone,” emphasizing Israel’s resolve to pursue its objectives despite opposition.

The Prime Minister’s comments, delivered via social media and a subsequent interview with American talk show host Dr. Phil, underscore Israel’s determination to address security threats posed by the Gaza Strip, particularly by Hamas militants operating in Rafah.

Netanyahu reiterated the necessity of military action in Rafah to eliminate the remaining Hamas battalions, condemned Hamas’s history of violence and reiterated Israel’s commitment to achieving victory and ensuring the safety of its citizens.

The US administration, led by President Joe Biden, expressed concerns over the potential humanitarian impact of an Israeli invasion of Rafah, prompting the decision to withhold additional offensive weapons shipments to Israel.

Biden’s statement echoed broader international apprehensions about the escalation of violence and civilian casualties in the conflict-stricken region.

However, Netanyahu remained resolute in Israel’s approach, asserting the country’s right to defend itself against security threats. He emphasized Israel’s efforts to minimize civilian casualties and facilitate the evacuation of civilians from Rafah before any military action.

Despite the US’s decision to pause the bomb shipment, Netanyahu affirmed Israel’s commitment to its longstanding alliance with the US. He acknowledged past disagreements between the two nations but expressed optimism about resolving current tensions through dialogue and cooperation.

In response, White House officials reiterated the US’s support for Israel’s security while urging restraint and emphasizing the need to avoid actions that could exacerbate the humanitarian crisis in Gaza.

The administration clarified that the decision to halt the bomb shipment was aimed at preventing potential civilian casualties in Rafah.

The confrontation between Israel and the US underscores the complexity of navigating regional conflicts and balancing strategic interests. As tensions persist, both nations face the challenge of reconciling their respective security imperatives with broader humanitarian concerns, seeking to avert further escalation while addressing the root causes of the conflict in the Middle East.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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Yahaya Bello

The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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NIMC enrolment

Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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