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Osinbajo to Sign 2017 Budget Next Week, Says Dogara

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SPEAKER of the House of Representatives, Yakubu Dogara
  • Osinbajo to Sign 2017 Budget Next Week

The Speaker of the House of Representatives, Mr. Yakubu Dogara, on Friday said that Acting President Yemi Osinbajo would sign the 2017 budget into law “early next week.”

Dogara made this known during the second anniversary session of the 8th House of Representatives in Abuja.

Although the Speaker did not give much details as to the specific date when the budget signing would take place, his hint indicated that the Presidency might have communicated to him a decision to assent to the N7.441tn budget next week.

Meanwhile, as the session was going on, it was disrupted by some members of the National Association of Nigerian Students due to the leadership tussle rocking the association.

Dogara, while recognising the attendance of the students at the session, had mentioned Mr. Haruna Kadiri as the National President of NANS.

But, another factional NANS President, Mr. Chinedu Obasi, interrupted Dogara rudely by shouting that Kadiri was not the President.

Obasi’s supporters, who thronged the gallery of the House, also shouted that it was Obasi and not Kadiri that was the authentic President.

Amidst the confusion and uproar, Dogara was forced to halt his speech as security officials whisked Obasi out of the chambers.

Outside the chambers, Obasi, who almost had his clothes torn, insisted that he was the President, showing a letter of invitation sent to him by the House to attend the event.

Ironically, the House also sent the same letter to Kadiri, who was eventually recognised by Dogara.

Obasi stated, “We are disappointed by the action of the Speaker to have recognised someone not known to us as the national president of NANS. I am the duly elected national president of NANS.

“With me here is the letter of invitation to this event sent to me by the House leadership. I didn’t just come here. I was invited.”

But, one lawmaker and a former official of NANS, Mr. Tajudeen Yussuf, explained that the House invited both Obasi and Kadiri because of the confusion over who was the authentic NANS President.

“It was based on this reasoning that names were not contained in the invitation letters that were issued to the two leaders,” Yussuf added.

Meanwhile, the Chairman of the Editorial Board of ThisDay Newspapers, Mr. Olusegun Adeniyi, told the House that the National Assembly suffered negative image perception because of the jumbo pay of lawmakers and the unresolved controversies surrounding budget padding.

Adeniyi also said certificate scandals and the ostentatious lifestyle of senators and members of the House contributed to why Nigerians frequently questioned their relevance to the country.

Adeniyi was the guest speaker at the special session.

Speaking on the topic, “Image Perception of the Legislature: Causes and Possible Solutions,” he also observed that a House that could vote N3.6bn to buy exotic cars for its members in a period of recession did not appear to be sensitive to the plight of Nigerians.

He added that much as the House had passed many bills and motions in the last two years, the concern of Nigerians would be how the bills had impacted directly on their lives.

He said, “As far as the honourable members seated here this morning are concerned, you are serving the people.

“But where majority of Nigerians are concerned, you are all here serving only your own interest.

“Whether the populace is right or wrong is not the issue here. What is important is for the members to be aware that the people whose interest they claim to serve do not think highly of them.”

However, in his address, Dogara argued that while the current House would not assess itself for the work it had done, it had broken all the records of performance set since 1999.

The speaker said, “Statistics bear this out. The total number of bills introduced so far is 1,064, out of which Executive bills are 50; Senate bills transmitted to the House are 21; and Private Members’ bills are 993.

“A total of 126 bills have been passed by the House and the others are at various stages in the legislative mill. Twenty seven bills have received Presidential assent and a lot more are in the pipeline.

“Each of the achievements highlighted above is unsurpassed by any previous Assembly. The sheer volume of these bills attests to the vibrancy of the House in its attempt to legislate on key areas of our national life at a very trying time in our history.”

Dogara also stated that the House had kept its promise of not only to reform the budgeting process but had also published the details of the budget of the National Assembly this year.

Although, it was a special anniversary session, punch observed that about 200 out of the 360 members of the House were absent in the chambers.

Only 74 members were in attendance as at 10.27am when Dogara addressed the opening of the session. The number grew to 150 when it ended about 1.47pm.

However, the Leader of the House, Mr. Femi Gbajabiamila, told the session that there was a wrong notion of assessing legislators based on the number of times they sat in the chambers. According to him, while the plenary of the House might appear not to be full most of the times, legislators are busy performing other functions of oversight and committee assignments, “which are even more important than the plenary.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Nigeria to Raise VAT to 10% Amid Revenue Crisis, Says Fiscal Policy Chairman

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Value added tax - Investors King

Taiwo Oyedele, Chairman Presidential Fiscal Policy and Tax Reforms Committee, has said the committee working on increasing the Valued Added Tax (VAT) from the current 7.5% to 10%.

Oyedele announced this during an interview on Channels TV’s Politics Today.

According to Oyedele, the tax law the committee drafted would be submitted to the National Assembly for approval.

He also said his committee was working to consolidate multiple taxes in Nigeria to ensure tax reduction.

He said, “We have significant issues in our tax revenue. We have issues of revenue generally which means tax and non-tax. You can describe the whole fiscal system in a state that is in crisis.

“When my committee was set up, we had three broad mandates. The first one was to look at governance: our finances as a country, borrowing, coordination within the federal government and across sub-national.

“The second one was revenue transformation. The revenue profile of the country is abysmally low. If you dedicate our whole revenue to fixing roads it will be insufficient. The third is on government assets.

“The law we are proposing to the National Assembly has the rate of 7.5% moving to 10% from 2025. We don’t know how soon they will be able to pass the law. Then subsequent increases are also indicated in terms of the year they will kick in.

“While we are doing that, we have a corresponding reduction in personal income tax. Anybody that is earning about N1.5 million a month or less, they will see their personal income tax come down. Companies will have income tax rate come down by 30% over the next two years to 25%. That is a significant reduction.

“Other taxes they pay are quite many: IT levy, education tax, etc. All these we are consolidating into a single one. They will pay 4% initially. That will go down to 2& in the next few years.”

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Nigerian Economy Surges 3.19% in Q2 2024, Service Sector Leads Growth

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Nigerian Breweries - Investors King

The Nigerian economy grew in the second quarter of 2024 by 3.19% year-on-year, according to data released by the National Bureau of Statistics (NBS) on Monday.

This is an improvement from the 2.98% growth recorded in the first quarter of 2024 and the 2.51% achieved during the same period in 2023.

The growth was driven predominantly by the service sector, which saw a 3.79% growth during the quarter and contributed 58.76% to Nigeria’s aggregate GDP.

The service sector, which includes industries such as telecommunications, banking, and hospitality, has become a significant driver of economic activity in Africa’s largest economy as it diversifies away from its traditional reliance on oil and agriculture.

In addition to the strength of the service sector, the industry sector also posted a positive performance, growing by 3.53% during the quarter.

This is a notable recovery from the -1.94% decline recorded in the same period in 2023.

The industry sector includes manufacturing, construction, and utilities, which have benefitted from increased investments and improvements in energy supply.

The agriculture sector, a longstanding pillar of the Nigerian economy, experienced a modest growth of 1.41%, slightly lower than the 1.50% recorded in the second quarter of 2023.

Despite the slower growth, agriculture remains vital to Nigeria’s economy, providing employment to millions of Nigerians and contributing to food security.

The overall 3.19% growth in GDP highlights the resilience of the Nigerian economy despite ongoing challenges such as inflation, currency depreciation, and insecurity.

Analysts had predicted a modest growth rate of around 3.16% for the second quarter, closely aligning with the actual performance.

The Financial Derivatives Company (FDC) also forecasted Nigeria’s annual average GDP growth to reach approximately 3.07% in 2024, which is consistent with the International Monetary Fund’s (IMF) revised projections.

The Q2 GDP performance supports these forecasts, providing cautious optimism for the remainder of the year.

While the growth of the Nigerian economy is a positive development, challenges remain. Inflation, particularly in food prices, continues to strain household incomes, and the naira’s depreciation has increased the cost of imports.

Also, infrastructure deficits and insecurity in various regions of the country pose obstacles to sustained economic expansion.

Despite these challenges, the continued growth in the service and industry sectors demonstrates Nigeria’s capacity to adapt and evolve in an increasingly diversified economy. If these sectors maintain their current trajectory, they could help mitigate some of the pressures facing the economy and improve living standards for Nigerians.

The government’s focus on economic reforms, including efforts to attract foreign investment, improve infrastructure, and enhance security, will be crucial in sustaining and building on the positive GDP growth in the coming quarters.

Economic diversification remains a key goal, and the strong performance of the service sector is a promising sign that Nigeria is moving in the right direction.

With cautious optimism, experts are hopeful that Nigeria can leverage its expanding sectors to achieve sustained economic growth and create more opportunities for its growing population.

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WTO’s Okonjo-Iweala Points to Declining Nigerian GDP Growth as Major Concern

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Ngozi Okonjo Iweala

Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO), has raised concerns about the country’s declining GDP growth.

Speaking at the annual General Conference of the Nigerian Bar Association (NBA) on Sunday, Okonjo-Iweala highlighted a troubling trend that has marked the Nigerian economy since 2014.

Addressing an audience of legal professionals, policymakers, and economists, Okonjo-Iweala painted a grim picture of Nigeria’s economic performance, noting that the nation’s GDP growth rate has significantly deteriorated over the past decade.

She observed that between 2000 and 2014, Nigeria enjoyed a relatively robust average GDP growth rate of 3.8%, which notably outpaced the population growth rate of 2.6% annually.

This period was characterized by substantial economic advancements and improvements in living standards for many Nigerians.

However, the post-2014 era has been marked by economic stagnation and decline. According to Okonjo-Iweala, Nigeria’s GDP growth rate has turned negative, recording a troubling average decline of 0.9%.

This reversal, she argues, reflects the government’s failure to sustain the positive economic momentum achieved by previous administrations.

“The contrast between the two decades is striking,” Okonjo-Iweala said. “While the early 2000s brought significant economic progress, the subsequent years have seen a marked decline in GDP growth, which has directly impacted the average Nigerian’s quality of life.”

The WTO Director General attributed this decline to a combination of factors, including inconsistent economic policies, lack of effective reform implementation, and broader macroeconomic challenges.

She said despite various reform attempts and temporary economic improvements, Nigeria has struggled to build on and consolidate these gains.

“The inability to sustain economic growth has had severe repercussions,” Okonjo-Iweala continued. “Many Nigerians are facing diminished job prospects and reduced well-being, as the benefits of earlier growth have not been maintained or built upon.”

In her address, Okonjo-Iweala urged for urgent and comprehensive economic reforms to address these challenges.

She called on Nigerian policymakers to focus on strategies that promote sustainable growth, enhance economic stability, and improve the overall quality of life for the populace.

The call for action comes at a time when Nigeria is grappling with various economic pressures, including inflation, currency depreciation, and unemployment.

Okonjo-Iweala’s remarks underscore the need for renewed efforts to stabilize the economy and implement policies that can drive long-term growth and development.

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