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FG Saves N4.7bn Monthly Through TSA, Says Buhari

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Buhari talks tough, orders Nigerian agencies to switch to Treasury Single Account
  • FG Saves N4.7bn Monthly Through TSA, Says Buhari

President Muhammadu Buhari on Tuesday said his administration was saving about N4.7bn monthly through the full implementation of its policy on the Treasury Single Account.

He said over 20,000 bank accounts belonging to the Federal Government had so far been consolidated into one.

Buhari disclosed this while declaring open the 2017 e-Nigeria Conference organised by the National Information Technology Development Agency held at the International Conference Centre, Abuja.

The President said his administration also leveraged on Information Communication Technology to introduce the Integrated Payroll and Personnel Information System and Bank Verification Number.

He said the implementation of the IPPIS had helped to eliminate ‘ghost’ workers on the government’s payroll and was saving it over N20bn monthly.

Buhari stated, “You may recall that on assumption of office, we enforced the policy on Treasury Single Account. Today, we are all witnesses to the impact it has made on our financial management. We have so far consolidated over 20,000 accounts, resulting into about N4.7bn monthly savings.

“In addition, the policy facilitated transparency, accountability and ease of transactions and payments between government and businesses as well as government and citizens.”

He added, “Another initiative leveraging on ICT and making huge impact on the economy is the introduction of the Integrated Payroll and Personnel Information System and Bank Verification Number.

“Its implementation has helped to eliminate the menace of ghost workers thereby reducing waste in the system by saving government over N20bn monthly.”

Buhari said his presence at the opening of the conference was a demonstration of his administration’s commitment and strong belief in using ICT as a major driver of developmental governance and economic reform plans aimed at bringing about the true change he promised Nigerians.

He described ICT as strategic in driving productivity and efficiency in all sectors of the economy.

The sector, he stated, has recorded huge investments and was contributing over 10 per cent of the nation’s Gross Domestic Product.

According to him, the government is making conscious efforts to see that this contribution continues to grow in the next few years.

The President regretted that about 80 per cent of ICT hardware purchases were imported through local distributors of Original Equipment Manufacturers by Ministries, Departments and Agencies and other government establishments.

This, he noted, made it difficult for the country to benefit from the dividends of continuous procurement and consumption of ICT infrastructure and limited value retention within the country.

The President recalled that the present administration recently issued an Executive Order mandating all MDAs to give preference to locally manufactured goods and services in their procurement of IT services.

Such measures, he said, were part of the deliberate efforts at encouraging local manufacture of ICT infrastructure, creating job opportunities, providing investment opportunities as well as strengthening the nation’s currency.

He noted that ICT played a pivotal role with agencies of government such as the Corporate Affairs Commission, Federal Inland Revenue Service and the Nigeria Immigration Service, which had leaned on ICT in improving public service delivery in an efficient and transparent manner.

So far, he said 31 reforms had been completed by the council and these reforms are already making noticeable impact on the government’s economic diversification efforts.

Buhari commended NITDA’s efforts at enforcing the Federal Government’s directive on ensuring that all ICT projects in the country were cleared by it before implementation.

“These efforts will ensure that government’s ICT procurements are transparent, they are aligned with government’s IT shared vision and policy, save costs through promotion of shared services, avoid duplication, ensure compatibility of IT systems thereby improving efficiency across government and enforce the patronage of indigenous companies,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Nigeria, Morocco sign MOUs on Hydrocarbons, Others

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The Federal Government and the Kingdom of Morocco have signed five strategic Memoranda of Understanding that will foster Nigerian-Morocco bilateral collaboration and promote the development of hydrocarbons, agriculture, and commerce in both countries.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, led the Nigerian delegation to the agreement signing ceremony on Tuesday at Marrakech, Morocco, while the Chief Executive Officer of OCP Africa, Mr Anouar Jamali, signed for the Kingdom of Morocco, according to a statement by the Nigerian Content Development and Monitoring Board.

Under the agreement between OCP, NSIA and the Nigerian National Petroleum Corporation, Nigeria will import phosphate from the Kingdom of Morocco and use it to produce blended fertiliser for the local market and export.

The statement said Nigeria would also produce ammonia and export to Morocco.

“As part of the project, the Nigerian Government plans to establish an ammonia plant at Akwa Ibom State,” it said.

The Executive Secretary of NCDMB, Mr Simbi Wabote, and the Group Managing Director of NNPC, Mallam Mele Kyari, were part of the delegation and they confirmed that their organisations would take equity in the ammonia plant when the Final Investment Decision would be taken, the statement said.

Sylva said the project would broaden economic opportunities for the two nations and improve the wellbeing of the people.

He added that the project would also positively impact agriculture, stimulate the growth of gas-based industries and lead to massive job creation.

He said the President, Major General Muhammadu Buhari (retd.), had mandated the Ministry of Petroleum Resources and it agencies and other government agencies to give maximum support for the project.

“He mandated me to ensure that at least the first phase of this project is commissioned before the expiration of his second term in office in 2023,” he added.

According to the statement, the MOUs were for the support of the second phase of the Presidential Fertiliser Initiative; Shareholders Agreement for the creation of the joint venture company to develop the multipurpose industrial platform and MOU for equity investment by the NNPC in the joint venture and support of the gas.

Other agreements are term sheet for gas sales and aggregation agreement and MOU for land acquisition and administrative facilitation to the establishment of the multipurpose industrial platform for gas sales and aggregation agreement.

The NCDMB boss described the bilateral agreement as significant to the Nigerian economy as it would accelerate Nigeria’s gas monetisation programme through establishment of the ammonia plant in the country.

The agreement would also improve Nigeria’s per capita fertiliser application through importation of phosphate derivatives from Morocco, he added.

Wabote challenged the relevant parties to focus on accelerating the FID, assuring them that the NCDMB would take equity investment for long-term sustainability of the project.

He canvassed for the setting up of a project management oversight structure to ensure project requirements and timelines are met.

“There is also need to determine manpower needs for construction and operations phase of the project and develop training programmes that will create the workforce pool from Nigeria and Morocco and design collaboration framework between research centres in Nigeria and Morocco to develop technology solutions for maintaining the ISBL and OSBL units of the Ammonia complex,” he said.

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Economy

Dangote Fertiliser Plant to Commence Shipment of Urea in March 2021

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Dangote to Sells Petrol in Naira, Plans to Commence Urea Shipment in March 2021

The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said Dangote Fertiliser Plant will commence shipment of Urea in March 2021.

The CBN governor disclosed this during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline at Ibeju Lekki, Lagos on Saturday.

Emefiele further stated that Dangote Refinery would sell refined petroleum products in Naira when it starts production.

This he said would save the country from spending 41 percent of the nation’s foreign exchange on importation of petroleum products yearly.

Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira,” Mr Emefiele said.

That is the element where foreign exchange is saved for the country becomes very clear. We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated.

Emefiele explained that this will make the price of Nigeria’s petroleum products affordable and cheaper in naira.

If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.

“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency,” Mr Emefiele said.

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Economy

UK Budget 2021: Will Sunak’s Budget Run Into Unintended Consequences?

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Rishi Sunak’s Budget will encourage higher earners to consider their “international financial options” and will drive businesses away from the UK, warns the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The warning from Nigel Green, chief executive and founder of deVere Group, comes as the Chancellor delivered his 2021 Budget in the House of Commons, his second since he took on the role.

Mr Green says: “The Chancellor has got an extraordinarily difficult hand to play as he tries to stem the economic damage caused by the pandemic, support jobs and businesses and, crucially, rebuild the public finances.

“Whilst Mr Sunak is being hailed a hero for the continued and unprecedented levels of support, it should also be remembered that he is – in a stealth move – dragging more people firmly into the tax net.

“He is raising taxes under the radar.

“Yes, there is no income tax rise. However, he is freezing personal tax thresholds, meaning as incomes rise and thresholds don’t, he is able to raise money by fiscal drag.”

Earlier this week, the deVere CEO noted: “Those most impacted by this stealth move will be looking at the financial planning options available to them, including international options, in order to grow and protect their wealth.”

Rishi Sunak also confirmed that corporation tax will increase to 25% from 2023, up from the current level of 19%.

Of this tax hike, Mr Green goes on to say: “Lower corporation tax helps job and wealth-creating business to survive and thrive. It also helps attract business to move and invest in the country.

“Instead of increasing taxes, Mr Sunak should have relentlessly focussed on growth and stimulus policies for businesses.  This would have been of greater help to firms, the economy, jobs and, ultimately, the Treasury’s coffers.”

He adds: “Again, this corporation tax hike is likely to serve as a prompt for businesses to consider their overseas financial options.”

The deVere CEO concludes: “The Chancellor had to perform a tough juggling act.  But stealthily dragging more people into the tax net and raising corporation tax might have negative, unintended consequences for the Treasury’s bottom line.”

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