- FG to Spend N7.15trn on Debt Service, Recurrent Expenditure in 2020
The Federal Government would spend a total of N7.15 trillion on debt servicing and recurrent expenditure in the 2020 fiscal year, according to the Minister of Finance, Budget and National Planning, Zainab Ahmed.
Mrs. Zainab Ahmed, who unveiled the draft 2020-2022 Medium Term Fiscal Framework and Fiscal Strategy Paper on Tuesday in Abuja, disclosed this.
The N7.15 trillion translates to 73.7 percent of the planned 2020 budget of N9.78 trillion. Again, this highlighted Nigeria’s precarious situation when it comes to budget.
Africa’s largest economy would spend N2.05 trillion on capital expenditure in 2020 despite campaigning for economic diversification and pushing for improved productivity.
Still, the Federal Government plans to cut capital expenditure by N1.13 trillion from N3.18 trillion in 2019 to N2.05 in 2020. This explains why Nigeria has been unable to grow the non-oil sector in spite of its 91.2 percent contribution to real GDP.
According to the finance minister, N2.45 trillion would be spent on debt servicing in 2020, more than the estimated N2.05 trillion for capital expenditure while another N4.7 trillion would be splashed on recurrent expenditure (non-debt) for the same year, again twice N2.05 trillion planned budget for 2020 capital expenditure.
Nigeria’s budgeted ‘debt servicing cost’ to budget in the planned 2020 stands at 25.05 percent, slightly lower than the 25.59 percent achieved in 2019, largely due to the increase in the size of the planned 2020 budget.
The Federal Government budgeted N2.01 trillion for debt servicing in 2018; N2.26 trillion in 2019 and N2.45 trillion in 2020. Cost of servicing debt continues to rise as all efforts to ramp up revenue generation are yet to yield substantial result despite trillions reportedly spent on infrastructure to grow the economy.
Nigeria spent $357.26 million servicing foreign debt in the first quarter of the year, while the nation borrowed another N560 billion in the same quarter to push total debt to N24.9 trillion.
The inability of the Federal Government to aggressively push its diversification agenda due to high debt cost remains Nigeria’s growth obstacle, especially with the unemployment rate at 23.1 percent or 20.9 million of labour force. Nigeria needs to do more to curtail debt and improve capital expenditure.
NNPC Supplies 1.44 Billion Litres of Petrol in January 2021
The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.
The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.
NNPC said the 1.44 billion litres translate to 46.30 million litres per day.
Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).
The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.
Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.
For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.
Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.
Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.
NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021
The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.
This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).
The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.
It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.
NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.
Nigeria’s Food Inflation Hits 22.95 Percent in March 2021
Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.
Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.
Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.
On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.
Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.
Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.
The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.
However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.
Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.
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