President Muhammadu Buhari presented N20.5 trillion budget proposal to a joint session of the National Assembly on Friday.
According to a copy of the budget proposal seen by Investors King, the Federal Government proposed a total expenditure of N20.51 trillion for the 2023 financial year.
This is above the earlier proposal of N19.76 trillion approved in the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) submitted to the National Assembly.
The budget which was christened ‘Budget of Fiscal Sustainability and Transition’ is the last annual budget to be presented by President Buhari before the expiration of the present administration.
Some of the parameters and fiscal assumptions captured in the 2023 budget proposal include an oil price benchmark of $70 per barrel, an estimated daily oil production of 1.69 million barrels, an exchange rate of N435.57/$1, a projected Gross Domestic Product (GDP) growth rate of 3.75 percent and an inflation rate 17.16 percent.
Furthermore, revenue parameters as contained in the budget proposal include N16.87 trillion as collectables, while the total revenue available to fund the 2023 Federal Budget is estimated at N9.73 trillion.
The budget proposal has an oil revenue projection of N1.9 trillion and a non-oil tax estimate of N2.43 trillion. Revenue from Government Owned Enterprises is estimated at N2.42 trillion.
In regard to the expenditure, the federal government plans to spend N20.5 trillion in 2023. A statutory transfer of N744.11 billion will be made from the overall expenditure. Personnel cost was estimated at N4.99 trillion, overhead cost will consume N1.11 trillion, pensions, gratuities and retirees’ benefits will take N854.8 billion while a sum of N5.35 trillion will be expended on capital expenditure.
Meanwhile, the federal government has also earmarked N6.31 trillion for debt servicing.
Our correspondent also observed that the 2023 budget proposal has a deficit of N10.78 trillion which represents more than 50 percent of the entire budget.
As expected, the government planned to finance the budget deficit by making new borrowings which will total N8.80 trillion. A sum of N206.18 billion will be sourced from privatisation proceed while N1.77 trillion Naira will be harnessed from bilateral/multilateral loans.
While presenting the budget, the President used the occasion to highlight both the challenges and the achievements of his administration. Some of the achievements which the president highlighted include the construction of the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano Road.
Others include completing and commissioning the 156km Lagos-Ibadan Standard Gauge Rail (and its 8.72km extension to Lagos Port); the 186km Abuja-Kaduna Standard Gauge Rail; and the 327km Itakpe-Warri Standard Gauge Rail.
President Buhari also highlighted his achievements in the aviation industry, mentioning the completion of new Airport Terminals at Lagos, Abuja, Kano and Port Harcourt.
On the other hand, the president disclosed that the adverse impact of Covid 19 pandemic dealt a big blow to the country’s economy. He also mention that unemployment, insecurity and high inflation rates are some of the challenges that his administration tried to address.
Our correspondent learnt that top government officials who accompanied the president to the National Assembly include the Vice President, Prof Yemi Osinbajo, the President’s Chief of Staff, Prof Ibrahim Gambari and virtually all the ministers.
Falcon Corporation Secures N19.41bn Debt Facility for State-of-the-Art LPG Facility in Port Harcourt
Falcon Corporation Limited, a prominent player in Nigeria’s energy sector, has successfully secured a N19.41 billion debt facility from the Chapel Hill Denham Nigeria-managed Infrastructure Debt Fund (NIDF).
The financing will be used for the development of a cutting-edge 15,000 metric ton Liquefied Petroleum Gas (LPG) storage facility and a dedicated jetty in Rumuolumeni, Saipem/Aker Base Road, Port Harcourt, Rivers State.
The Managing Director of Falcon Corporation, Prof. Joe Ezigbo, emphasized the company’s commitment to national service through investments in the gas industry.
He highlighted the strategic positioning of the LPG facility in proximity to major gas sources and navigable water routes, anticipating economic gains, job creation, income growth, health improvements, and environmental sustainability.
“We positioned our LPG facility strategically in proximity to major Gas sources and navigable water routes. The Project is set to facilitate and enhance more direct procurement and distribution of LPG, which will dramatically lower conventional delivery and storage costs,” said Prof. Joe Ezigbo.
The project has achieved significant milestones, reaching a completion rate of 65% as of October 2023. Various phases of development, including the completion of the jetty, shoreline protection, and engineering activities, have contributed to this progress.
The entire project is expected to be completed and commissioned by Q4 2024.
Falcon’s General Manager, Finance, Nelson Walter, expressed satisfaction with the partnership with NIDF, highlighting their reputation for providing reasonable terms for impactful infrastructure projects.
The flexible long-term loan repayment structure aligns with Falcon’s goals, making the collaboration instrumental in realizing this groundbreaking project.
Financial advisers Vetiva Capital Management Limited and Chapel Hill Denham Advisory, along with legal counsel Detail Commercial Solicitors, played crucial roles in facilitating this strategic debt facility for Falcon Corporation’s ambitious LPG infrastructure development in Rivers State.
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Zenith Bank Signs MOU With CFA Institute to Develop Finance and Investment Professionals
Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the Chartered Financial Analyst (CFA) Institute to promote efforts and activities that support the formation, training, and updating of human capital in finance and investment for the overall development of the Nigerian financial services sector.
The MoU, was signed by the Group Managing Director/CEO of Zenith Bank Plc, Dr. Ebenezer Onyeagwu; the President/CEO of the CFA Institute, Margaret Franklin; and the President of CFA Society Nigeria, Ibukun Oyedeji on Tuesday, November 28, 2023.
Speaking at the MoU signing ceremony, the Group Managing Director/CEO of Zenith Bank Plc, Dr. Ebenezer Onyeagwu commended the CFA Institute and the CFA Society, Nigeria for their laudable programmes in developing finance and investment professionals in Nigeria.
According to him, your Women in Investment Management Initiative, CFA Institute Research Challenge, CFA Society Nigeria Ethics Challenge and University Affiliation Program are very laudable, and Zenith Bank will continue to partner with the CFA Institute and the CFA Society Nigeria to ensure that young finance and investment professionals get the needed support for their career development.
In his words, “As a good corporate citizen, Zenith Bank remains committed to furthering the economic, cultural and social development of the society. As such, we continue to support projects and initiatives that have long-term social and economic benefits for our various publics and stakeholders. Partnering with the CFA Institute and the CFA Society Nigeria is therefore a demonstration of our commitment to building professional excellence in the finance services industry in Nigeria”.
At the CFA Institute Africa Investment Conference, during the ‘Journey to the Top: A Discourse with CEOs’ segment, Dr. Onyeagwu inspired future finance and investment professionals to uphold the highest standards of integrity.
He stressed the importance of making difficult yet high-quality decisions, building robust networks, and dedicating themselves to hard work for career success.
In his words, “as upcoming professionals, the opportunities are immense for you. Africa doesn’t get bigger than Nigeria. There is scarcity of the right kind of people that have the talent, that have the character and the leadership to provide leadership in organizations. Make a decision to be one of those, make a decision to be different. You must be driven by your passion; you must delay gratification. In Zenith what is driving us is the strive for excellence. It is not about who you are and where you come from. We have the best class of talents you can think of anywhere in the world.”
He assured the young finance and investment professionals that Zenith Bank will offer immediate employment opportunity to CFA Charter Holders and those who qualify as Chartered Accountants.
Also speaking on the MoU, the President/CEO, CFA Institute, Margaret Franklin reiterated the Institute’s commitment to the professional development of students and upcoming professionals.
In her words, “there are many things that we do for students, we invest heavily in students and why is that? Because they are our future. The mission of the CFA Institute is to lead the investment industry with the highest standards of ethics, education and professional excellence for the ultimate benefit of society and that starts with our CFA programme”.
She commended Zenith Bank for its continued support to the CFA Society Nigeria and sponsorship of the CFA Institute Research Challenge over the years.
She also commended the bank for being one of the top employers of CFA members in the country. She expressed her admiration of the culture of excellence in Zenith Bank.
Also speaking at the MoU signing ceremony, the President of CFA Society Nigeria, Ibukun Oyedeji commended Zenith Bank for its partnership with CFA Society Nigeria and its commitment to the development of young finance professionals in the country.
The the CFA Institute Africa Investment Conference is being hosted by the CFA Institute and CFA Societies from Ghana, East Africa, South Africa and Mauritius. The conference has representatives from over 20 universities in Nigeria (members of their investment clubs being supported by CFA Society).
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