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FG Extends 2016 Budget Implementation to March 2017

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Budget 2017 year on cube with pencil and clock
  • FG Extends 2016 Budget Implementation to March 2017

The Federal Government has extended the execution of the N1.58tn capital component of the 2016 budget to the end of March 2017.

The development was confirmed by the Accountant-General of the Federation, Alhaji Ahmed Idris, via a circular with reference number OAGF/CAD/026/V.111/108.

The circular, which was obtained by our correspondent on Friday in Abuja, was addressed to top government officials such as the Chief of Staff to the President, Secretary to the Government of the Federation, ministers, National Security Adviser, Governor of the Central Bank of Nigeria and all service chiefs.

Others are the Chairman of the Federal Inland Revenue Service, all permanent secretaries (federal), Clerk of the National Assembly, Auditor General of the Federation, all vice chancellors of federal universities, all directors of finance and internal audit and all directors-general.

The circular, titled “Guidelines for financial activities for end of year 2016”, stated that while the implementation of the recurrent budget was expected to end on December 31, 2016, the capital component would be allowed to go on until March ending.

Idris said the need to issue the circular became imperative in order to promote probity, transparency and good governance.

The circular read in part, “It has become imperative to provide guidelines to all Ministries, Departments and Agencies and other arms of government on financial activities for the fiscal year ending December 31, 2016.

“The objective of the guidelines is to promote probity, transparency, accountability and good governance in line with the policy of trust of the present administration.

“All ‘unspent’ balances in the recurrent expenditure cash books at the end of 2016 financial year will be closed.

“The Government Integrated Financial Management Information System platform will be closed by midnight of December 31, 2016 and the MDA balances will be mopped into the Consolidated Revenue/Treasury Single Account accordingly.

“The unexpended recurrent votes of the MDAs on the TSA-sub accounts under the CBN/Remita gateway for the 2016 financial year shall similarly lapse at midnight of December 31, 2016.”

It added, “Capital allocation and statutory transfer for the financial year ended December 31, 2016 will not be closed but extended to March 31, 2017.

“Accordingly, all MDAs will have access to their capital funds and statutory transfers up until March 31, 2017 as may be applied by the National Assembly.”

The circular, however, stipulated that the MDAs would be responsible for transfering the relevant legal or financial commitments into the New Year.

The transfer commitment, it added, would have impact on the 2017 budget including the capital budget transferred from the 2016 fiscal period.

It however, noted that such transactions would be separately disclosed in the consolidated financial statements of the Federal Government.

The N6.06tn 2016 budget, which was signed into law by President Muhammadu Buhari on May 5 had a recurrent expenditure of N2.65tn; capital expenditure of N1.58tn, with debt service of N1.47tn and fiscal deficit of N2.2tn.

So far, about N753.6bn has been released by the Ministry of Finance for capital projects with the Ministry of Power receiving the highest amount of capital releases of N209.24bn.

The Special Adviser on Media to the Finance Minister, Mr. Festus Akanbi, said in a statement that the Ministry of Defence had N69.5bn and the Ministry of Transportation followed with N30.5bn.

Others are agriculture, N29.5bn; water resources, N25.2bn; interior, N21.2bn; health, N18.4bn; education, N16.7bn; Niger Delta, N8.1bn; science and technology, N6.6bn; mines and steel, N3.3bn; and petroleum resources, N2.4bn.

The statement from the ministry also stated that the sum of N312.5bn was released to what it described as “others”.

The Minister of Budget and National Planning, Senator Udo Udoma, said a total of N753.6bn already released for capital expenditure in 2016 was the highest in the nation’s recent history, even in the era of high oil prices.

At an interactive session with members of the Senate Committee on Appropriation in Abuja, Udoma had said that in spite of the shortfall in revenue expectation, the government was committed to its debt obligations and had made efforts to fund the critical sectors to enable the government to function smoothly while seeking lasting solutions to the revenue shortfalls.

He explained that although the 2016 budget was well conceived, with reasonably conservative benchmarks, it recorded unanticipated revenue shortfalls along the line due to militants’ activities in the oil-producing Niger Delta region.

This development, he added, adversely affected the budgeted production levels for the 2016 fiscal year.

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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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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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israel Gaza

Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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