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2019 Polls to Cost N242bn, Buhari Tells N’Assembly

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  • 2019 Polls to Cost N242bn, Buhari Tells N’Assembly

President Muhammadu Buhari has presented a supplementary budget to the National Assembly in which he sought the approval of N164bn out of the N242bn budgeted for the 2019 general elections.

Buhari said the Independent National Electoral Commission and security agencies would need N242bn for the elections, asking the legislature to provide N164bn through virement in the 2018 budget or supplementation, while the balance of N78bn would be covered by the 2019 budget.

Buhari, in his letter to the National Assembly, titled, ‘Request for virement and supplementary 2018 budget,’ specifically asked the legislature to re-allocate part of the N578bn voted to the projects inserted into the 2018 Appropriation Act by the lawmakers to fund the elections and critical infrastructure.

The President specifically asked the legislature not to increase the current size of the 2018 Appropriation Act from N9.21tn but to vire N228bn from the N578bn to the elections as well as the critical projects as earlier proposed by the executive in the 2018 Appropriation Bill.

President of the Senate, Bukola Saraki, read the proposal at the plenary on Tuesday.

INEC to spend N189.2bn; NSAO, N4.2bn; DSS, N12bn; NSDC, N3.5bn; Police, N30.5bn; NIS; 2bn

Giving the breakdown of the running costs for the polls, Buhari said INEC needed N143, 512, 529, 445 for 2018 supplementary and N45, 695, 015,438 in 2019 budget, totalling N189, 207, 544, 893.

He said the Office of the National Security Adviser needed N3,855,500,000 for 2018 supplementary and N426,000,000 in 2019 budget, amounting to N4,281,500,000.

The Department of State Services wants N2,903,638,000 as 2018 supplementary and N9,309,644,455 in 2019 budget, totalling N12,213,282,455.

The Nigeria Security and Civil Defence Corps requires N1,845,597,000 as 2018 supplementary and N1,727,997,500 in the 2019 budget, totalling N3,573,534,500.

Also, the Nigeria Police needs N11,457,417,432 as 2018 supplementary and N19,083,900,000 in 2019 budget, to get a total of N30,541,317,432.

The Nigeria Immigration Service also needs N2,628,143,320, out of which N530, 110,078 would come from 2018 supplementary and N2, 098,033,142 from the 2019 budget.

Buhari said, “As you are aware, the 2019 general election is scheduled to be conducted early in 2019. To ensure that adequate arrangements are made for free and fair elections, it has become necessary to appropriate funds to enable the relevant agencies to commence preparations. INEC and the security agencies have accordingly recently submitted their requests. These have been subjected to the usual budget evaluation. The aggregate cost of the election is estimated at N254,445,322, 600.

“However, in line with the prevailing fiscal constraints, I am proposing that the sum of N164, 104, 792, 065 be provided for through virement or supplementation of the 2018 budget. I propose that the balance of N78, 340, 530, 535, mostly related to personnel allowances, fuelling and other costs not required until election proper, be provided in their 2019 budget.”

The President said the critical projects, whose allocations were cut by the lawmakers, required N64bn, asking that the amount should also be taken out of the allocation to the inserted projects.

The lawmakers had introduced 6,403 projects into the budget amounting to N578bn.

Buhari said, “You will also recall that when I signed the 2018 Appropriation Act, I indicated the need for the reinstatement of certain cuts made to certain critical projects provided in the original executive bill. I am therefore submitting for your consideration the reinstatement of the most critical of such cuts totalling N64,749, 216, 150 which are summarised in Page 1.

“The total amount required to be provided for in the 2018 budget for the 2019 general elections and to restore the identified critical projects to the amount earlier proposed is therefore N228, 854, 800, 215. Implementing a budget of N9.12tn for 2018 is extremely challenging and, therefore, I do not consider it expedient to propose a further increase to the size of the 2018 expenditure framework to fund these very important and critical expenditure items.

“Accordingly, I invite the distinguished Senate to consider, in the national interest, relocating some of the funds appropriated for the new projects which were inserted into the 2018 budget proposal totalling N 578, 319, 951, 904 to cover the sum of N228, 854, 800, 205 required as noted above.

“A schedule setting out a comprehensive list of these inserted projects is attached to this letter for ease of your consideration. Further to the above, kindly find attached a supplementary budget and virement proposal for your consideration.”

The two chambers of the National Assembly had passed the 2018 Appropriation Bill on May 16, 2018. The legislature had increased the budget from N8.612tn as proposed by the executive to N9.12tn.

The lawmakers had said the additional N508bn was based on the agreement between the executive and the legislature based on the increase in prices of crude oil, which led to the raising of the oil benchmark from the proposed $45 to $51.

However, the President had, while assenting to the bill on June 20, complained about the adjustments made to the estimates in the budget by the legislature.

President Promises Free, Fair 2019 Elections

Meanwhile, Buhari on Tuesday promised to do everything possible to ensure that the 2019 general elections are free, fair and peaceful.

He said all hands were on deck to forestall the violence that characterised the 2011 elections which necessitated investigations by the International Criminal Court.

Buhari made the promise in his keynote address at the Solemn Hearing to commemorate the 20th anniversary of the Rome Statute of the ICC at The Hague.

Scores of Nigerians were killed in parts of the country in the wake of the violence that broke out after the 2011 elections in Nigeria.

But the President assured the ICC that such would not happen under his watch.

He said, “Let me intimate you that Nigeria is preparing to conduct general elections in 2019.

“Contrary to the tragic incidents that characterised the 2011 general elections in Nigeria which necessitated preliminary investigations by the International Criminal Court, I assure you that all hands are on deck to prevent any recurrence of such tragic incidents.

“We shall do everything possible to ensure that Nigeria witness the conduct of free, fair and peaceful elections in 2019.”

Buhari called on the states parties to support ICC with jurisdiction over serious cases of corruption and illicit financial flows by state actors.

He added, “A strong and effective ICC has the potential to send a powerful message about the international community’s commitment to accountability, a message that will be heard by both victims and perpetrators.

“Equally, a strong and effective ICC demonstrates the international community’s commitment to the rule of law.

‘‘A strong and effective ICC can also act as a catalyst for other justice efforts, expanding the reach of accountability.

“These could include serious cases of corruption by state actors that severely compromise the development efforts of countries and throw citizens into greater poverty.

“These could also include cases of illicit financial flows where countries are complicit and obstruct repatriation of stolen assets. As the African Union Champion on Anti-corruption, these are issues dear to my heart.”

The President thanked the judges of the court for electing a Nigerian, Chile Eboe-Osuji, as President.

While congratulating Eboe-Osuji, on his election, the President said Nigeria was proud of him.

Buhari recalled that the court was established 20 years ago as a global court, inspired by the Nuremberg trials of World War II war criminals, to hold people accountable for crimes against humanity, war crimes, crimes of genocide and aggression.

He noted that the ICC had given hope for justice to many by demanding strict adherence to the rules of international humanitarian law.

The President noted that Nigeria had cooperated with, and supported the court at all times.

This, he said, the country had demonstrated by its full and transparent cooperation on matters on which it was being investigated and also in its several country statements at the sessions of the court.

The Nigerian leader is the only President invited to grace the 20th anniversary of the adoption of the ICC Rome Statute.

Over 25 high-level state officials, the President of the Assembly of States Parties to the Rome Statute, O-Gon Kwon; ICC Prosecutor, Fatou Bensouda; ICC Registrar, Peter Lewis; UN Legal Counsel, Miguel de Serpa Soares; and other special guests, attended the event.

Coalition urges ICC to tackle Buhari over killings

The Nigerian Coalition for the International Criminal Court, a civil society concerned with the advocacy for the domestication of the International Criminal Court’s Rome Statute, on Tuesday, charged the court’s prosecutor, Fatou Bensouda, to engage the visiting President Muhammadu Buhari, on the continued killings in Nigeria.

The coalition also asked the ICC’s prosecutor to engage Buhari on the alleged non-accountability on the part of the country’s security agencies, while also calling on the Nigerian government to join in the fight against impunity and domesticate the Rome Statute.

Buhari had travelled to the ICC in The Hague on Sunday for the commemoration of the 20th anniversary of the establishment of the court through its Rome Statute.

The NCICC, in a statement jointly signed by its Chairman, Mr Chinonye Obiagwu; and its Vice Chairman, Dr Abiola Akiode-Afolabi, congratulated the court, which they said needed to be supported in the face of rising global violations of humanitarian laws and human rights.

The coalition noted that Nigeria had yet to domesticate the Rome Statute, despite being under the ICC’s preliminary examination due to the armed conflict between Boko Haram and Nigerian security agencies and different crimes committed in the Niger Delta region.

While calling on the ICC’s prosecutor to seize the opportunity of Buhari’s attendance at the court’s 20th anniversary to engage the President on the continued killings in the country, the NCICC also asked the Nigerian government to domesticate the Rome Statute and prosecute those involved in “the gross and frequent violations.”

The statement read in part, “The NCICC emphasises that in the rise of global violations of humanitarian laws and human rights, there is no better time to support the International Criminal Court than now.

“To ensure a more just world, it is important for states to foster cooperation with the ICC by domesticating and implementing the Rome Statute’s provisions of complementarity in their national legislation and prosecute international crimes committed within their territory.

“Despite Nigeria being listed as a preliminary examination country due to the armed conflict between Boko Haram and Nigerian security and different crimes committed in the Niger Delta region, the country continues to face more violations of human rights and crimes violating international law.

“It is imperative at this time for the Nigerian government to stand up for justice, domesticate the Rome Statute and prosecute these gross and frequent violations.

“As President Buhari attends the event of the Rome Statute at 20, we urge the ICC Prosecutor, Fatou Bensouda, to engage the president on the continued killings in the North-Central and North-East regions and the non-accountability on the part of the state security.”

The coalition noted that the ICC had so far had 26 cases, issued 32 arrest warrants and delivered verdict in six cases, with eight convictions and two acquittals, the most recent being that of Jean-Pierre Bemba Gombo.

It added that Nigeria, though a state party of the ICC, had since the submission of its instrument of ratification on September 27, 2001, failed to domesticate the Rome Statute into its national legislation in accordance with the provisions of section 12 of the 1999 Constitution.

“The Rome Statute which is the founding treaty of the International Criminal Court vested the court with the power to exercise jurisdiction over international crimes to wit: genocides, crimes against humanity, war crime and crime of aggression,” the coalition’s statement read.

It added, “The NCICC calls on the Nigerian government to join in the fight against impunity and domesticate the Rome Statute and further reiterates the need for the National Assembly to expedite the domestication of the Rome Statute bill which comes up for a public hearing on July 18, 2018.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigeria’s N3.3tn Power Sector Rescue Package Unveiled

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President Bola Tinubu has given the green light for a comprehensive N3.3 trillion rescue package.

This ambitious initiative seeks to tackle the country’s mounting power sector debts, which have long hindered the efficiency and reliability of electricity supply across the nation.

The unveiling of this rescue package represents a pivotal moment in Nigeria’s quest for a sustainable energy future. With power outages being a recurring nightmare for both businesses and households, the need for decisive action has never been more urgent.

At the heart of the rescue package are measures aimed at settling the staggering debts accumulated within the power sector. President Tinubu has approved a phased approach to debt repayment, encompassing cash injections and promissory notes.

This strategic allocation of funds aims to provide immediate relief to power-generating companies (Gencos) and gas suppliers, while also ensuring long-term financial stability within the sector.

Chief Adebayo Adelabu, the Minister of Power, revealed details of the rescue package at the 8th Africa Energy Marketplace held in Abuja.

Speaking at the event themed, “Towards Nigeria’s Sustainable Energy Future,” Adelabu emphasized the government’s commitment to eliminating bottlenecks and fostering policy coherence within the power sector.

One of the key highlights of the rescue package is the allocation of funds from the Gas Stabilisation Fund to settle outstanding debts owed to gas suppliers.

This critical step not only addresses the immediate liquidity concerns of gas companies but also paves the way for enhanced cooperation between gas suppliers and power generators.

Furthermore, the rescue package includes provisions for addressing the legacy debts owed to power-generating companies.

By utilizing future royalties and income streams from the gas sub-sector, the government aims to provide a sustainable solution that incentivizes investment in power generation capacity.

The announcement of the N3.3 trillion rescue package comes amidst ongoing efforts to revitalize Nigeria’s power sector.

Recent initiatives, including tariff adjustments and regulatory reforms, underscore the government’s determination to overcome longstanding challenges and enhance the sector’s effectiveness.

However, challenges persist, as highlighted by Barth Nnaji, a former Minister of Power, who emphasized the need for a robust transmission network to support increased power generation.

Nnaji’s advocacy for a super grid underscores the importance of infrastructure development in ensuring the reliability and stability of Nigeria’s power supply.

In light of these developments, stakeholders have welcomed the unveiling of the N3.3 trillion rescue package as a decisive step towards transforming Nigeria’s power sector.

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Nigeria’s Inflation Climbs to 28-Year High at 33.69% in April

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Nigeria's Inflation Rate - Investors King

Nigeria is grappling with soaring inflation as data from the statistics agency revealed that the country’s headline inflation surged to a new 28-year high in April.

The consumer price index, which measures the inflation rate, rose to 33.69% year-on-year, up from 33.20% in March.

This surge in inflation comes amid a series of economic challenges, including subsidy cuts on petrol and electricity and twice devaluing the local naira currency by the administration of President Bola Tinubu.

The sharp rise in inflation has been a pressing concern for policymakers, leading the central bank to take measures to address the growing price pressures.

The central bank has raised interest rates twice this year, including its largest hike in around 17 years, in an attempt to contain inflationary pressures.

Governor of the Central Bank of Nigeria has indicated that interest rates will remain high for as long as necessary to bring down inflation.

The bank is set to hold another rate-setting meeting next week to review its policy stance.

A report by the National Bureau of Statistics highlighted that the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.

Food inflation, which accounts for the bulk of the inflation basket, rose to 40.53% in annual terms, up from 40.01% in March.

In response to the economic challenges posed by soaring inflation, President Tinubu’s administration has announced a salary hike of up to 35% for civil servants to ease the pressure on government workers.

Also, to support vulnerable households, the government has restarted a direct cash transfer program and distributed at least 42,000 tons of grains such as corn and millet.

The rising inflation rate presents significant challenges for Nigeria’s economy, impacting the purchasing power of consumers and adding strains to household budgets.

As the government continues to grapple with inflationary pressures, policymakers are faced with the task of implementing measures to stabilize prices and mitigate the adverse effects on the economy and livelihoods of citizens.

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FG Acknowledges Labour’s Protest, Assures Continued Dialogue

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Power - Investors King

The Federal Government through the Ministry of Power has acknowledged the organised Labour request for a reduction in electric tariff.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had picketed offices of the National Electricity Regulatory Commission (NERC) and Distribution Companies nationwide over the hike in electricity tariff.

The unions had described the upward review, demanding outright cancellation.

Addressing State House correspondents after the Federal Executive Council (FEC) meeting on Tuesday, Minister of Power, Adebayo Adelabu, said labour had the right to protest.

“We cannot stop them from organizing peaceful protest or laying down their demands. Let me make that clear. President Bola Tinubu’s administration is also a listening government.”

“We have heard their demands, we’re going to look at it, we’ll make further engagements and I believe we’re going to reach a peaceful resolution with the labor because no government can succeed without the cooperation, collaboration and partnership with the Labour unions. So we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and government has taken in their demands and we’re looking at it.

“But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday, who embarked on the peaceful protests, more than 95% of them are not affected by the increase in the tariff of electricity. They still enjoy almost 70% government subsidy in the tariff they pay because the average costs of generating, transmitting and distributing electricity is not less than N180 today.

“A lot of them are paying below N60 so they still enjoy government’s subsidy. So when they say we should reverse the recently increased tariff, sincerely it’s not affecting them. That’s one position.

“My appeal again is that they should please not derail or distract our transformation plan for the industry. We have a clearly documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.”

He said there was the need for sacrifice from everybody, “from the government’s side, from the people’s side, from the private sector side. So we must bear this sacrifice for us to have a permanent gain”.

“I don’t want us to go back to the situation we were in February and March, where we had very low generation. We all felt the impact of this whereby electricity supply was very low and every household, every company, every institution, felt it. From the little reform that we’ve embarked upon since the beginning of April, we have seen the impact that electricity has improved and it can only get better.”

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