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N143bn Budget Hike for Federal Roads, Amnesty, N’Assembly, Others

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Federation Account Allocation Committee
  • N143bn Budget Hike for Federal Roads, Amnesty, N’Assembly, Others

Some key federal road projects are to benefit from the over N143bn added to the 2017 budget size by the National Assembly.

Also to benefit from the increase is the Presidential Amnesty Programme for the Niger Delta.

The National Assembly itself, among other sub-heads in the budget, will benefit from the increase.

The budget, which now has a new size of N7.441tn, will possibly be passed by the National Assembly on Thursday (today).

The original proposal by President Muhammadu Buhari was N7.298tn.

Findings showed that while the original proposal for the Amnesty Programme by Buhari was N65bn, the new figure would be N75bn, as a result of N10bn said to have been added to it by the National Assembly.

One official explained the reason, “The Amnesty Programme got additional funding in the region of N10bn.

“This is to ensure steady funding of the programme and maintain the current relative peace in the Niger Delta.

“Also, there are some federal roads we consider to be very important.

“They cut across the various zones of the country. We added money there to pay contractors who have already generated certificates.”

The official added, “There are other additions like the National Assembly too, which will get additional N10bn.

“For so many years, the budget of the legislature remained the same. It was on N150bn for many years up to 2014.

“It went down first to N120bn and later N115bn, while the operations of the National Assembly and its organs have continued to multiply over the same period.

“It was considered necessary to raise the figure a bit in view of the fluctuations in the value of the naira.”

The difference of N143bn in the budget size came to light on Tuesday when the House Committee on Appropriation submitted its report to the House in Abuja.

The report was laid by the Chairman of the committee, Mr. Mustapha Bala-Dawaki, at the session, which was presided over by the Speaker, Mr. Yakubu Dogara.

The highlights of the report show that N434.412bn will go to statutory transfers, while another N1.841tn is set aside for debt servicing.

The sum of N177.460bn was recommended for “sinking fund for maturing bonds.”

The recurrent expenditure captured in the new report is N2.990tn.

In Buhari’s initial proposal, recurrent expenditure was N2.98tn.

The capital component in the new report is N2.174tn as against the N2.24tn presented by Buhari.

Meanwhile, Dogara and his colleagues went into a closed-door meeting on Wednesday to discuss the budget.

The session, which lasted for about 45 minutes, reportedly focussed on the need for lawmakers to cooperate with the executive arm of government by passing the budget.

“A lot meetings were held between Mr. President; the Senate President, Bukola Saraki; Dogara and other top officials of government preceding the budget.

“It is expected that there will be no more friction between the two sides,” one source said.

When contacted for comments, the Chairman, House Committee on Media and Public Affairs, Mr. Abdulrazak Namdas, simply said the meeting reviewed the budget and other legislative activities.

“We are passing the budget tomorrow (Thursday); so, it was just a normal meeting to share ideas on the budget,” he stated.

This year’s budget has suffered delays right from last year when the President presented the estimates in December.

Ministries, Departments and Agencies of government later compounded the problem when they started appearing before National Assembly committees for budget defence without the details.

At some point, the heads of several agencies were turned away by lawmakers for failing to supply the details of their proposals.

As of March, some agencies were still defending their budget, while the Nigeria Customs Service only concluded its defence on Wednesday, last week.

But the Chairman, Senate Committee on Media and Public Affairs, Senator Aliyu Sabi-Abdullahi, declined to explain the reasons why the budget of the National Assembly was jacked up in the 2017 Appropriation Bill.

He said Nigerians would get the details when the bill was passed on Thursday (today).

Speaking on Wednesday, Sabi-Abdullahi stated, “As far as I’m concerned, until tomorrow when the budget is discussed, I’m not in the position to comment on it. I don’t know what it is until tomorrow. I can’t comment on what I don’t know.”

When the Senate spokesman was reminded that he should have the answer as a member of the Committee on Appropriation, he said, “I am somebody who believes so much in protocol and due process. Tomorrow, when the budget is open to discussion, everything will be there.”

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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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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