Connect with us

Economy

Senate Approves Revised N10.8 Trillion Budget for 2020

Published

on

Budget

FG Revised Up 2020 Budget to N10.81 Trillion Despite Revenue Shortfall

The National Assembly has finally approved the upwardly revised N10.81 trillion budget for 2020.

The revised budget was approved after Senator Barau Jibri-led Committee on Appropriation certified it okay.

The 2020 Appropriation budget was increased by N310 billion from the previously approved N10.5 trillion to N10.81 following the fall in oil revenue and the surge in health sector expenses as COVID-19 pandemic tear the world apart.

In the new revised budget statutory transfers was increased from N422 billion to N427 billion. While recurrent expenditure was raised from N4.928 trillion to N4.942 trillion.

The federal government also upped capital expenditure from the N2.230 trillion previously budgeted to N2.488 trillion.

Debt servicing was left unchanged at N2.951 trillion despite called for debt relief Africa’s finance ministers.

The Senate also includes N500 billion intervention fund for COVID-19, out of which N186 billion was budgted for the health sector.

Experts, however, doubt the Federal Government’s ability to fund such huge debt in a period when revenue generation is at record low and multilateral institutions are already stressed with loan applications from across the world.

Dr Sam Nzekwa, a former President, Association of National Accountants of Nigeria, said budget implementation is a subject of fund availability, saying he is not optimistic about the budget because even when the economy was regarded as buoyant, implementation was 50 percent and sometimes 40 percent.

He said, “Budget is subject to availability of funds and in most cases, we have not actually implemented the budget 100 per cent; you will see 40 or 50 per cent.

“Now that we have COVID-19, how do we now get money to do the budget; now we are talking of borrowing more.”

Another expert, Prof. Akpan Ekpo, a former Director-General, West African Institute for Financial and Economic Management, said the federal government should focus on upping the nation’s productivity and not procure loans to fund recurrent expenditure.

“I hope the borrowing will be used to finance infrastructure and not recurrent expenditure. There is a problem if it is used for recurrent expenditure.”

Ekpo advised the government to cut down on the cost of governance instead of reducing capital expenditure.

“My worry is that the amount earmarked for servicing debts is still very high,” he added.

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

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

Published

on

The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

Continue Reading

Economy

World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

Published

on

world bank

The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

Continue Reading

Economy

Nigeria Will Have no Business With Fish Importation in the Next Two Years- FG

Published

on

fish

At the 35th annual conference of the Fisheries Society of Nigeria (FISON) held in Abuja on Monday, the minister of Agriculture and Rural Development, Mr  Sabo Nanono, expressed plans of the federal government to initiate and implement programmes that are aimed towards diversification, especially in the agricultural sector.

The minister explained that the fishery sub-sector contributes about 4.5 percent to the National Gross Domestic Products, with an estimation of over 12 million Nigerians actively involved in fish farming and production.

He further said that despite this number, Nigeria produces 1.1 million tonnes of fishes annually, while there is a total demand of 3.6 million tonnes of fish and this puts Nigeria is at a deficit of 2.5 million tones. The shortage is supplemented through importation.

“Let me inform you that the vision of Mr President is to grow Nigeria’s agriculture sector to achieve a hunger-free nation, through agriculture that drives income growth, accelerate the achievement of food and nutritional security, generate employment and transform Nigeria into a leading player in the group of food and fish markets, and to create wealth for millions,” he said.

He also explains the ministry’s plans of diversification and development of various empowerment programmes that aid job creation.

“In line with the theme of this conference, the ministry has developed various programmes to increase domestic food/fish production and the main target is the empowerment of the youth and other groups especially the women,” he stated, adding: “All these programmes are tailored towards wealth and jobs creation, arrest and prevention of youth restiveness”.

He said the government has directed all fish importers to commence backward integration for local consumption and export to international markets, these are part of the measures of the ministry to generate employment and reduce importation of fish into the country.

In regards to this plans, Nanono said that the ministry is optimistic that Nigeria will have no business with fish importation in the next two years, considering that several companies have complied to the laid down policy.

Representing the Director of Federal Department of Fisheries, Mr Imeh Umoh, he stressed that the fishery is one of the value chains in the ministry and a force that drives wealth, job creation, contribute to food nutrition, poverty reduction and creation of diverse investment for Nigerians “especially during the economic recession which is occasioned by the COVID-19 pandemic”.

Nanono said that considering the current economic situation due to the global health pandemic and the ongoing economic recovery programme, the contribution of the fisheries and aquaculture sub-sector of Nigeria will make a significant impact in terms of job creation, income generation, poverty alleviation, foreign exchange earnings and provision of raw materials.

Mr Adegoke Agbabiaka, President of FISON said that in the last decade the government has made a paradigm shift under the Agricultural Transformation Agenda and is now considering agriculture, including fisheries and aquaculture, as a business and this will aid to achieve self-sufficiency in fish production.

Continue Reading

Trending