- FG Cuts Revenue Projection by N223.36 Billion
The slowdown in business activities and growing economic uncertainty ahead of the national elections may have forced the Federal Government to lower its projected independent revenue from N847.95 billion in 2018 to N624.58 billion in the 2019 fiscal period.
The adjustment represents a decline of N223.36 billion or 26.34 percent from the initial projection.
Independent revenues are funds generated by agencies as stipulated in the Fiscal Responsibility Act of 2007.
The Act mandates government agencies to remit 80 percent of their operating surplus to the Consolidated Revenue Fund account.
The agencies are the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Securities and Exchange Commission, Nigeria Shippers Council, Nigeria Export Promotion Council, National Health Insurance Scheme, Nigeria Civil Aviation Authority, and Nigerian Communication Commission.
In the Budget Call Circular signed by the Minister of Budget and National Planning, Udo Udoma, the reasons for reduction in revenue projection are slowing economic activities, which is expected to affect tax revenue during the 2019 fiscal period, the uncertainty surrounding the national elections and weak consumer spending due to low minimum wage were some of the factors highlighted by the minister.
“Ministries are to ensure that government-owned enterprises under their supervision submit their own three-year revenue and expenditure estimates and 2019 budgets,” the document read in part.
“The supervising ministry is required to review and approve the GOEs’ budgets, and then submit same along with the ministry’s own budget to the BOF.”
“These would be screened and revised for consistency with the government’s overall strategic thrust and subsequently presented along with the FGN annual budget to the National Assembly.”
“Pursuant to the Executive Order 002, Heads of Agencies and Chief Executive Officers of GOEs are once again reminded to comply fully with the provisions of the order and are reminded of the punitive measures contained therein.”
Nigeria’s Natural Gas Production Declines Despite N250bn Intervention Fund
Despite the injection of a N250 billion intervention fund into the gas sector, Nigeria witnessed a downturn in natural gas production last year, raising concerns about the effectiveness of the financial stimulus.
The Energy Institute, in collaboration with KPMG, unveiled an industry report revealing a notable drop of 4 billion cubic feet meters in Nigeria’s natural gas production between 2021 and 2022.
While Nigeria’s gas production demonstrated consistent growth from 39 billion cubic feet meters in 2012 to 49 billion cubic feet meters in 2020, the trajectory abruptly shifted to a decline, reaching 45 billion cubic meters in 2021 and further slipping to 40 billion cubic meters last year.
The Federal Government’s intervention included a N250 billion fund, facilitated through the Central Bank of Nigeria, with N130 billion earmarked for 15 selected companies for the construction of Compressed Natural Gas (CNG) conversion centers.
This initiative, part of the National Gas Expansion Program (NGEP), aimed to promote CNG as the preferred fuel for transportation and Liquefied Petroleum Gas (LPG) for domestic cooking, captive power, and small industrial complexes.
The 15 recipient companies, including prominent names like Dangote Oil Refinery, Nipco Gas Ltd, and Greenville Liquefied Natural Gas Company, received a combined N130 billion.
However, despite this financial injection, the natural gas production figures tell a different story.
Chinedu Okoronkwo, President of the Independent Petroleum Marketers Association of Nigeria, expressed dissatisfaction with the exclusion of his members from the loan, stating that inclusion would have accelerated the conversion of over one million vehicles to CNG models.
The Senate Committee on Gas, chaired by Jarigbe Agom Jarigbe, has summoned the 15 companies to provide progress reports on the projects funded by the intervention.
As Nigeria aims for substantial investment in the gas value chain, these revelations raise questions about the efficacy and impact of financial interventions in the country’s critical sectors.
Experts Urge Swift Government Action on Nigeria’s Untapped N3 Trillion Logistics Sector
Experts at the Courier and Logistics Management Institute conference in Lagos have emphasized the critical importance of the overlooked logistics, courier, and transport sector in Nigeria, valued at over N3 trillion.
During the event themed “Logistics Solutions and National Infrastructure Development,” the CLMI Executive Chairman, Prof. Simon Emeje, highlighted the urgent need for the federal government to prioritize this sector, which remains relatively untapped on a global scale.
Emeje underscored the sector’s significance, stating, “Any country that does not pay attention to logistics, courier, and the transport sector cannot survive.
The government must not ignore this sector because it is the bedrock of any economy.”
The logistics, courier, transport, and management industry boasts an average asset worth over N3 trillion, offering substantial potential for job creation.
Emeje emphasized that commerce is crippled without effective logistics, illustrating the importance of the sector in facilitating trade, enhancing the supply chain, creating jobs, and propelling economic growth.
Despite its undeniable importance, the Nigerian logistics sector faces hindrances such as infrastructural deficits and weak government policies, preventing it from reaching its full potential.
Emeje called for immediate attention to address these challenges and unlock the sector’s capacity to create millions of employment opportunities for Nigerian youth.
Former Minister of Communications, Barr. Adebayo Shittu, urged the institute to draft a comprehensive proposal for government adoption, offering assistance in facilitating engagement.
Both Shittu and Prof. Emeje called on the Federal Government to establish a dedicated ministry to foster an enabling environment for Courier and Logistics Management, drawing parallels to the recognition given to the entertainment industry.
President Tinubu Seeks Senate Approval for $8.6 Billion and €100 Million Borrowing Plan
President Bola Tinubu’s administration has formally requested the approval of the Nigerian Senate for a borrowing plan totaling $8.6 billion and €100 million.
The request was presented to the Senate through a letter read during the plenary by the Senate President, GodsWill Akpabio.
According to the letter, the proposed funds are integral to the federal government’s 2022-2024 external borrowing plan, previously sanctioned by the administration of former President Muhammadu Buhari.
Tinubu clarified that the projects earmarked for funding through this loan cut across diverse sectors, emphasizing their selection based on rigorous economic evaluations and their anticipated contributions to national development.
The letter highlighted, “The projects and programs in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the socio-economic development of the country, including employment generation, and skills acquisition.”
The specified sectors earmarked for development include infrastructure, agriculture, health, water supply, roads, security, and employment generation, along with financial management reforms.
The borrowing plan’s comprehensive approach aims to address critical needs and propel the nation’s progress.
President Tinubu emphasized the urgency of the Senate’s approval, stating, “Given the nature of these facilities, and the need to return the country to normalcy, it has become necessary for the Senate to consider and approve the 2022-2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians.”
This appeal follows previous successful requests, including the National Assembly’s approval of an over $800 million loan for the National Social Safety Network Programme in August.
Also, the assembly greenlighted the 2022 Supplementary Appropriations Act of N819 million to provide palliatives to Nigerians, mitigating the impact of fuel subsidy removal.
As the deliberations unfold, the Senate’s decision on this substantial borrowing plan will play a pivotal role in shaping Nigeria’s economic trajectory.
Oppenheimer Acquires Full Control of Nigeria’s GZ Industries in Bet on Economic Revival
MicroStrategy Chairman Michael Saylor Bolsters Bitcoin Bet with $593.3 Million Purchase
Coinbase’s November Surge Sparks Investor Enthusiasm Amid Crypto Volatility
Finance4 weeks ago
Black Market Exchange Rate Today 6th November 2023
Business2 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 14th November 2023
News3 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
News4 weeks ago
N-Power Batch C1 Programme Successfully Concluded, Investigation Ensures Eligible Beneficiaries Receive Payments
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 9th November 2023
Forex2 weeks ago
Black Market Exchange Rate Today 16th November 2023
Forex3 weeks ago
Black Market Exchange Rate Today 10th November 2023