Page 2

Today marks the third anniversary of the historic judgement delivered by Justice Gabriel Kolawole of the Abuja Division of the Federal High Court on the enforcement of the fundamental Rights of the illegally detained leader of the Islamic Movement in Nigeria, Sheikh Ibraheem Zakzaky and his wife, Zeenah Ibrahim. Failure to obey that judgement by President Muhammadu Buhari three years on, and counting, makes it one of the worst violations of the rule of law and a monumental abuse of the rights of the couple.

The learned Jurist had rule that the continued detention of the duo violates their rights under Section 35 (1) of the Nigerian Constitution and the provisions of the African Charter on Human and Peoples Rights. Consequently, he ordered the release of the ailing Sheikh and his wife within 45 days of the judgement and that both must be provided with a suitable accommodation and security. The court further ordered the payment of 50 million Naira by the federal government to both.

The judge had warned the government in that judgement that holding the Sheikh for so long amounted to great danger, insisting that “If the applicant dies in custody, which I do not pray for, it could result in many needless deaths.” However, Buhari has stubbornly kept deaf ears to that and contemptuously continued to detain them. Instead of releasing them, Buhari opted to file bogus charges against the Sheikh and his wife through Kaduna state government.

This stunning disregard for the rule of law and human rights does not come to the Islamic Movement as a great surprise because Buhari’s utter disregard for court judgements is legendary, and statistics has it that he has disregarded courts in at least 40 occasions since the inception of his government.

In the case of Sheikh Zakzaky, the government has at various times proffered different contradictory reasons for its flagrant contempt of court. One of the most absurd of such was the statement attributed to the President himself that national security is over and above the rule of law. By this his warped belief, he has stirred the country towards the path of dictatorship, to which all other well-meaning Nigerians must stand and fight against.

Failure to obey court orders by the government is an open invitation to anarchy as observed by a Professor of law, and this is at variance with the democratic principles it claims to be running. Before arriving at any decision to release any individual or grant him bail, the courts must have first reviewed the facts presented by all parties and listened to arguments from both the government and such citizens. It is therefore totally unacceptable for a government to choose the judgements it would follow and those it will ignore.

In the same vein, Senior Advocate of Nigeria once said: “What is national interest that rule of law must be sacrificed for? Rather, it is in the national interest of any government to obey and subject Nigeria to the rule of law. Where there is the rule of law, every interest, including that of the nation is safeguarded. A country without the rule of law is a lawless jungle.”

It is to the glory of Allah that 3 years into the judgement by the court that Sheikh Zakzaky and his wife be set free, we have never chickened out or relented in demanding for his unconditional release.

We will continue to do so irrespective of the government’s use of brutal force against us. We will leave no stone unturned in demanding for his unconditional freedom using all legitimate means at our disposal. We therefore once again unequivocally call for his unconditional release, his wife, and all the others still in detention since the Zaria massacre by the Nigerian Army in December, 2015.

Share:

Read More

Page 2

“NEED FOR URGENT INTERVENTION ON THE STALLED NEGOTIATION OF CONSEQUENTIAL ADJUSTMENT OF SALARIES ARISISNG FROM THE NEW NATIONAL MINIMUM WAGE OF N30,000 PER MONTH TO AVERT INDUSTRIAL CRISIS

The leadership of Organized Labour in Nigeria comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) met today, 2nd October, 2019 with the Joint National Public Service Negotiating Council (JNPSNC-Trade Union Side) at the Labour House, Abuja.

The sole agenda of the meeting was to receive briefing from JNPSNC and to discuss the way forward on the deadlock in negotiations for consequential wage adjustment for workers in public service arising from recent enactment of the new national minimum wage of N30,000. Subsequently, the meeting went into very extensive deliberations around the following concerns;

Organized labour has out of its patriotic disposition demonstrated a great deal of restraint, consideration and patience with government. In the course of negotiations for consequential salary adjustment, organized labour had to moderate its initial position of having 66.6% upward salary adjustment for workers on salary grade level 07 – 17 by accepting an upward adjustment of 29% for officers on salary level 07-14 and 24% adjustment for officers on salary grade level 15 – 17. Despite this patriotic gesture, government has kept insisting that it can only pay 11% for officers on grade level 07 – 14 and 6.5% consequential wage increase to public workers for officers on level 15-17;

Since the last national minimum wage of N18,000, workers have been forced to suffer huge inflation and astronomical hike in the prices of essential goods and services. The following examples would suffice;

The country’s currency, the naira had suffered devaluation from N150 to $1 in 2011 to N360 to $1 in 2019, a depreciation of 140%.

Furthermore, petroleum price has been hiked from N87 per liter to N145 per liter which translates to 60% price increase.

Electricity tariff has been increased by about 60%.

Of recent, the Value Added Tax (VAT) has been reviewed from 5% to 7.2%.

The nonchalant attitude of the government negotiating side has dragged negotiations for consequential wages adjustment unduly. Nigerian workers have exercised tremendous patience and restraint already.

At the end of our deliberation, the leadership of organized labour in Nigeria resolved as follows;

The offer by government for salary adjustment of 11% for public workers on salary grade level 07 – 14 and 6.5% consequential increase for public workers on grade level 15 – 17 is not acceptable to Nigerian workers. We view the position of government as a show of insensitivity to the plight of workers and an attempt to collect with the left hand what government had offered with the right hand;

We demand the reconvening of the meeting of the committee negotiating the consequential adjustment with a view to concluding the process that started on the 28th of May, 2019 within one week;

Entering into an agreement with labour to the effect that salary of officers on grade 07-14 should be reviewed upward by 29% while that of officers on grade level 15-17 should be reviewed upwards by 24%; and

Commence immediate implementation of the signed agreement on consequential adjustment of public workers’ salaries with effect from 18th of April 2019 when the new national minimum wage of N30,000 per month was signed into law.

In conclusion, the leadership of organized labour in Nigeria wishes to categorically state that the leadership of labour cannot guarantee industrial peace and harmony in the country if our demands are not met at the close of work on Wednesday, 16th October, 2019.

Aluta continua… Victoria Ascerta!

Comrade Ayuba Wabba, mni Comrade Quadri Olaleye

President, NLC President, TUC

Comrade Simon Anchaver Comrade Alade Bashir Lawal

Ag. Chairman, JNPSNC (Trade Union Side) Secretary, JNPSNC (Trade Union Side)

2nd October, 2019”

Share:

Read More

Page 2

I am delighted to participate in this first and historic Russia-Africa Summit. I thank our chief host, His Excellency Vladimir Putin, President of the Russia Federation for this important initiative and for the warm and generous hospitality accorded to us also commend His Excellency, President Abdel Fattah El-Sisi of the Arab Republic of Egypt, for his visionary and collaborative leadership of the African Union.

Today, we live in a world where collective peace and prosperity can only be achieved through collaboration and mutual respect.

This reality was aptly captured by the Late Dr. Martin Luther King, Junior when he said and I quote:“We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly.”

Nigeria’s relations with Russia just like the rest of Africa began during the Soviet era when diplomatic relations were first established in 1960.

That relationship covered areas such as education, healthcare, solid minerals development and military assistance, especially during Nigeria’s civil war.

More recently, our partnership has extended to the oil and gas sector as well as military and technical assistance in support of our fight against the Boko Haram insurgency.

At this point, I would once again like to thank His Excellency, President Putin for his support especially in the area of security.

It is my hope that through this forum, Russia and Africa will revitalize their time-tested relationship by exploring new opportunities for the collective benefit of our peoples.

Since the collapse of the USSR in 1991, relations between Russia and African nations have lagged behind historical levels.

The former Soviet Union had been a key partner of Africa.We all remember the strong support we received from the former Soviet Union in our anti-colonial struggles.

Africa will continue to remember this, and many other significant gestures of solidarity and support that shaped our history as a continent.

We are eternally grateful to the Soviet Union for coming to the aid of Africa in its hour of need.

As we live in an increasingly changing world driven by trade, technology, and innovation, the time has come to inject new energy and pragmatism in Africa-Russia relations for the mutual benefit of both Africa and Russia.

I want to emphasize that this mutually beneficial relationship must go beyond trade and business. Our re-energised partnership must also address challenges such as counter-terrorism, poverty eradication, human and drug trafficking, illicit financial flows, climate change and migration to mention some of the many contemporary challenges facing our peoples.

Our continent is rich in human and natural but is lagging behind in capital and technology.

This is why we see increased conflict, migration and instability that is also impacting many nations outside Africa.

On our part, we in Africa have continued to view Regional Integration as a key development priority. Our integration is one that seeks to address our infrastructure deficit, conflicts and terrorism, climate change, human trafficking and of vitality, trade.

Our integration process also takes into account our diversity as a continent and our unique challenges at the national and sub-national levels.

This is why progress has been slow but steady.With a population of over 1.2 billion people, for us in Africa, getting our socio-economic integration right presents enormous opportunities as we stand to promote robust, equitable and inclusive growth that will minimize conflict and enhance economic development.Today, these aspirations are captured in the Agenda 2063 of the African Union.

We are confident that with strong partners like Russia, our goal of having a peaceful and prosperous continent is achievableNigeria is the largest economy and most populous country in Africa.

Today, our population is almost over 200 million people. It is expected to grow to approximately 400 million by 2050. This will make Nigeria the third most populous nation in the world behind China and India.

Our economy is heavily dependent on its foreign exchange on oil. With the result that our high Gross Domestic Product (GDP) is not as a result of domestic sector productivity.

In the circumstances, although we still remain an oil-dependent nation, our government in the last four years has focused on diversifying our economy by supporting key job-creating sectors such as agriculture, mining, and ICT.

To achieve this, we invested aggressively in infrastructure development and introduced policies and programs that enhance our ease of doing business, reduce corruption in the public sector and enforce the rule of law.It is this inclusive economic diversification agenda that we want to forge a new Nigeria-Russia cooperation.

Already, we are seeing progress in areas of power generation, solid minerals development and rail transportation and I hope this will be expanded to Agriculture, Manufacturing and other means of Transportation.

We already have over 200 Nigerian university students in Russia benefitting from Russian Government scholarships which have been on-going since 1960.

Earlier this year, Nigeria signed a Bilateral Education Agreement (BEA) with Russia which will expand the human capital development support we are already receiving.

Let me clearly state that the time has come with this historic summit today, for Africa and the Russian Federation to develop new mutually beneficial relations.

On our part, I want to assure our Russian friends that Africa is resolute and ready.We look forward to embracing the new dawn of Africa-Russia partnership in general, and the revitalized Nigeria-Russia relations in particular.

Share:

Read More

page 2

Ojezua said the news of his removal was shocking as the state working committee which purportedly removed him didn’t have powers to do so.

The chieftain added: “Our constitution has a provision to remove officers at the state level. It is only the State Executive Committee that has the power to remove any officer.”

“Yesterday, 15 chairmen of the APC chapters in the local councils and 23 out of the 35 members of the State Executive Committee passed a vote of no confidence on the National Chairman, Comrade Adams Oshiomhole, while a vote of confidence was passed on my person.

“The APC Local council chairmen have found out that Adams Oshiomhole is the one behind the crisis in Edo APC and following the findings, lost confidence in the leadership of the national chairman by passing a vote of no confidence on him.

“Considering the stand of these chairmen and also based on the report from organs of the party, we affirmed the suspension of Comrade Adams Oshiomhole from APC in Edo State.

“Three local government chairmen of the APC were not in attendance at the meeting held on Tuesday. They are the chairmen of the party in Owan West, Etsako West and Etsako Central LGAs. I have letters informing me of their suspension and in that regard the Vice Chairmen are to act until those positions are filled.”

In his remarks, Obaseki explained that he is not happy with the recent political developments in the state, especially the disruptions from a once-trusted leader who has thrown caution to the wind to cause disaffection among APC members in the state.

The governor said when he first met Oshiomhole 12 years ago, they shared a common interest in salvaging Edo State but all that has changed in recent times.

“I am not an ungrateful person. No one made me governor. I became governor by God’s grace, with the support of many other people. If God had said I would not be governor, no way would I have been a governor. It is wrong for someone to say he made me governor.

“No one gave me money. The funds Oshiomhole initially raised for his governorship ambition was raised by me in Lagos. If I can raise money for him for his election, why would I not be able to raise money for my own election.”

The governor said the national chairman was not truthful about comments on his administration.

“If you came into power on some basic principles, do not expect to change those principles because you have certain ambition. If you came to power believing no man is God, then the day you start to play God, you will get the consequences.”

A leader of the APC in Ovia South-West LGA, Hon. Samuel Ekeneza, who moved the motion for the ratification of the suspension of Comrade Oshiomhole, said that the party remains supreme as no individual is bigger than the political party.

The motion for the ratification was supported by a leader of the APC in Esan Central LGA, Mr Osediamen Oriaifoh.

Share:

Read More

2020 Budget list

1. I will start by asking you to pardon my voice. As you can hear, I have a cold as a result of working hard to meet your deadline!

2. I am delighted to present the 2020 Federal Budget Proposals to this Joint Session of the National Assembly, being my first budget presentation to this 9th National Assembly.

3. Before presenting the Budget, let me thank all of you Distinguished and Honourable Members of the National Assembly, for your avowed commitment to cooperate with the Executive to accelerate the pace of our socio-economic development and enhance the welfare of our people.

4. I will also once again thank all Nigerians, who have demonstrated confidence in our ability to deliver on our socio-economic development agenda, by re-electing this Administration with a mandate to Continue the Change. We remain resolutely committed to the actualization of our vision of a bright and prosperous future for all Nigerians.

5. During this address, I will present highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will provide full details of these proposals, subsequently.

OVERVIEW OF ECONOMIC DEVELOPMENTS IN 2019

6. The economic environment remains very challenging, globally. The International Monetary Fund expects global economic recovery to slow down from 3.6 percent in 2018 to 3.5 percent in 2020. This reflects uncertainties arising from security and trade tensions with attendant implications on commodity price volatility.

7. Nearer to home, however, Sub-Saharan Africa is projected to continue to grow from 3.1 percent in 2018 to 3.6 percent in 2020. This is driven by investor confidence, oil production recovery in key exporting countries, sustained strong agricultural production as well as public investment in non-dependent economies.

8. Mr. Senate President; Right Honourable Speaker; I am pleased to report that the Nigerian economy thus far has recorded nine consecutive quarters of GDP growth. Annual growth increased from 0.82 percent in 2017 to 1.93 percent in 2018, and 2.02 percent in the first half of 2019. The continuous recovery reflects our economy’s resilience and gives credence to the effectiveness of our economic policies thus far.

9. We also succeeded in significantly reducing inflation from a peak of 18.72 percent in January 2017, to 11.02 percent by August 2019. This was achieved through effective fiscal and monetary policy coordination, exchange rate stability and sensible management of our foreign exchange.

10. We have sustained accretion to our external reserves, which have risen from US$23 billion in October 2016 to about US$42.5 billion by August 2019. The increase is largely due to favourable prices of crude oil in the international market, minimal disruption of crude oil production given the stable security situation in the Niger Delta region and our import substitution drive, especially in key commodities.

11. The foreign exchange market has also remained stable due to the effective implementation of the Central Bank’s interventions to restore liquidity, improve access and discourage currency speculation. Special windows were created that enabled small businesses, investors and importers in priority economic sectors to have timely access to foreign exchange.

12. Furthermore, as a sign of increased investor confidence in our economy, there were remarkable inflows of foreign capital in the second quarter of 2019. The total value of capital imported into Nigeria increased from US$12 billion in the first half year of 2018 to US$14 billion for the same period in 2019.

PERFORMANCE OF THE 2019 BUDGET

13. Distinguished and Honourable Members of the National Assembly, you will recall that the 2019 ‘Budget of Continuity’ was based on a benchmark oil price of US$60 per barrel, oil production of 2.3 mbpd, and an exchange rate of N305 to the United States Dollar. Based on these parameters, we projected a deficit of N1.918 trillion or 1.37 percent of Gross Domestic Product.

14. As at June 2019, Federal Government’s actual aggregate revenue (excluding Government-Owned Enterprises) was N2.04 trillion. This revenue performance is only 58 percent of the 2019 Budget’s target due to the underperformance of both oil and non-oil revenue sources. Specifically, oil revenues were below target by 49 percent as at June 2019. This reflects the lower-than-projected oil production, deductions for cost under-recovery on supply of premium motor spirit (PMS), as well as higher expenditures on pipeline security/maintenance and Frontier exploration.

15. Daily oil production averaged 1.86 mbpd as at June 2019, as against the estimated 2.3 mbpd that was assumed. This shortfall was partly offset as the market price of Bonny Light crude oil averaged US$67.20 per barrel which was higher than the benchmark price of US$60.

16. Additionally, revenue projections from restructuring of Joint Venture Oil and Gas assets and enactment of new fiscal terms for Production Sharing Contracts did not materialize, as the enabling legislation for these reforms is yet to be passed into law.

17. The performance of non-oil taxes and independent revenues such as internally generated revenues were N614.57 billion and N217.84 billion, respectively.

18. Receipts from Value Added Tax were below expectations due to lower levels of activities in certain economic sectors, in the aftermath of national elections. Corporate taxes were affected by the seasonality of collections, which tend to peak in the second half of the calendar year.

19. On the expenditure side, 2019 Budget implementation was also hindered by the combination of delay in its approval and the underperformance of revenue collections. As such, only recurrent expenditure items have been implemented substantially. Of the prorated expenditure of N4.46 trillion budgeted, N3.39 trillion had been spent by June 30, 2019.

20. In compliance with the provisions of the 2018 Appropriation Act, we implemented the 2018 capital budget till June 2019. Capital releases under the 2019 Budget commenced in the third quarter. As at 30th September 2019, a total of about N294.63 billion had been released for capital projects. I have directed the Ministry of Finance, Budget and National Planning to release an additional N600 billion of the 2019 capital budget by the end of the year.

21. Despite the delay in capital releases, a deficit of N1.35 trillion was recorded at end of June 2019. This represents 70 percent of the budgeted deficit for the full year.

22. Despite these anomalies, I am happy to report that we met our debt service obligations, we are current on staff salaries and overhead costs have also been largely covered.

2020 BUDGET PRIORITIES

23. Distinguished Senators, Honourable Members, let me now turn to the 2020 Appropriation, which is designed to be a budget of:

a. Fiscal consolidation, to strengthen our macroeconomic environment;

b. Investing in critical infrastructure, human capital development and enabling institutions, especially in key job creating sectors;

c. Incentivising private sector investment essential to complement the Government’s development plans, policies and programmes; and

d. Enhancing our social investment programs to further deepen their impact on those marginalised and most vulnerable Nigerians.

PARAMETERS & FISCAL ASSUMPTIONS UNDERPINNING THE APPROPRIATION BILL AND THE FINANCE BILL

24. Distinguished and Honourable Members of the National Assembly, the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) set out the parameters for the 2020 Budget. We have adopted a conservative oil price benchmark of US$57 per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per US Dollar for 2020.

25. We expect enhanced real GDP growth of 2.93% in 2020, driven largely by non-oil output, as economic diversification accelerates, and the enabling business environment improves. However, inflation is expected to remain slightly above single digits in 2020.

26. Accompanying the 2020 Budget Proposal is a Finance Bill for your kind consideration and passage into law. This Finance Bill has five strategic objectives, in terms of achieving incremental, but necessary, changes to our fiscal laws. These objectives are:

a. Promoting fiscal equity by mitigating instances of regressive taxation;

b. Reforming domestic tax laws to align with global best practices;

c. Introducing tax incentives for investments in infrastructure and capital markets;

d. Supporting Micro, Small and Medium-sized businesses in line with our Ease of Doing Business Reforms; and

e. Raising Revenues for Government.

27. The draft Finance Bill proposes an increase of the VAT rate from 5% to 7.5%. As such, the 2020 Appropriation Bill is based on this new VAT rate. The additional revenues will be used to fund health, education and infrastructure programmes. As the States and Local Governments are allocated 85% of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well.

28. The VAT Act already exempts pharmaceuticals, educational items, and basic commodities, which exemptions we are expanding under the Finance Bill, 2019. Specifically, Section 46 of the Finance Bill, 2019 expands the exempt items to include the following:

a. Brown and white bread;

b. Cereals including maize, rice, wheat, millet, barley and sorghum;

c. Fish of all kinds;

d. Flour and starch meals;

e. Fruits, nuts, pulses and vegetables of various kinds;

f. Roots such as yam, cocoyam, sweet and Irish potatoes;

g. Meat and poultry products including eggs;

h. Milk;

i. Salt and herbs of various kinds; and

j. Natural water and table water.

29. Additionally, our proposals also raise the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on larger businesses thereby bringing relief for our Micro, Small and Medium-sized businesses.

30. It is absolutely essential to intensify our revenue generation efforts. That said, this Administration remains committed to ensuring that the inconvenience associated with any fiscal policy adjustments, is moderated, such that the poor and the vulnerable, who are most at risk, do not bear the brunt of these reforms.

FEDERAL GOVERNMENT REVENUE ESTIMATES

31. The sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenue N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. This is 7 percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.

32. The increasing share of non-oil revenues underscores our confidence in our revenue diversification strategies, going forward. Furthermore, in our efforts to enhance transparency and accountability, we shall continue our strict implementation of Treasury Single Account (TSA) to capture the domiciliary accounts in our foreign missions and those linked to Government Owned Enterprises.

PLANNED 2020 EXPENDITURE

33. An aggregate expenditure of N10.33 trillion is proposed for the Federal Government in 2020. The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers). Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion.

STATUTORY TRANSFERS

34. The sum of N556.7 billion is provided for Statutory Transfers in the 2020 Budget and includes:

a. N125 billion for the National Assembly;

b. N110 billion for the Judiciary;

c. N37.83 billion for the North East Development Commission (NEDC);

d. N44.5 billion for the Basic Health Care Provision Fund (BHCPF);

e. N111.79 billion for the Universal Basic Education Commission (UBEC); and

f. N80.88 billion for the Niger Delta Development Commission (NDDC), which is now supervised by the Ministry of Niger Delta Affairs.

35. We have increased the budgetary allocation to the National Human Rights Commission from N1.5 billion to N2.5 billion. This 67 percent increase in funding is done to enable the Commission to perform its functions more effectively.

RECURRENT EXPENDITURE

36. The non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs, an increase of N620.28 billion over 2019. This increase reflects the new minimum wage as well as our proposals to improve remuneration and welfare of our Police and Armed Forces. You will all agree that Good Governance, Inclusive Growth and Collective Prosperity can only be sustained in an environment of peace and security.

37. Our fiscal reforms shall introduce new performance management frameworks to regulate the cost to revenue ratios for Government Owned Enterprises, which shall come under significant scrutiny. We will reward exceptional revenue and cost management performance, while severe consequences will attend failures to achieve agreed revenue targets.

38. We shall also sustain our efforts in managing personnel costs. Accordingly, I have directed the stoppage of the salary of any Federal Government staff that is not captured on the Integrated Payroll and Personnel Information System (IPPIS) platform by the end of October 2019. All agencies must obtain the necessary approvals before embarking on any fresh recruitment and any contraventions of these directives shall attract severe sanctions.

39. Overhead costs are projected at N426.6 billion in 2020. Additional provisions were made only for the newly created Ministries. I am confident that the benefits of these new Ministries as it relates to efficient and effective service delivery to our citizens significantly outweighs their budgeted costs.

40. That said, the respective Heads of MDAs must ensure strict adherence to government regulations regarding expenditure control measures. The proliferation of Zonal, State and Liaison Offices by Federal Ministries, Departments and Agencies (‘MDAs’), with attendant avoidable increase in public expenditure, will no longer be tolerated.

CAPITAL EXPENDITURE

41. As I mentioned earlier, investing in critical infrastructure is a key component of our fiscal strategy under the 2020 Budget Proposals. Accordingly, an aggregate sum of N2.46 trillion (inclusive of N318.06 billion in statutory transfers) is proposed for capital projects in 2020.

42. Although the 2020 capital budget is N721.33 billion (or 23 percent) lower than the 2019 budget provision of N3.18 trillion, it is still higher than the actual and projected capital expenditure outturns for both the 2018 and 2019 fiscal years, respectively. However, at 24 percent of aggregate projected expenditure, the 2020 provision falls significantly short of the 30 percent target in the Economic Recovery and Growth Plan (ERGP) 2017-2020.

43. The main emphasis will be the completion of as many ongoing projects as possible, rather than commencing new ones. MDAs have not been allowed to admit new projects into their capital budget for 2020, unless adequate provision has been made for the completion of ALL ongoing projects.

44. Accordingly, we have rolled over capital projects that are not likely to be fully funded by the end of 2019 into the 2020 Budget. We are aware that the National Assembly shares our view that these projects should be prioritised and given adequate funding in the 2020 Appropriation Act.

45. Therefore, I will once again commend the 9th National Assembly’s firm commitment to stop the unnecessary cycle of delayed annual budgets. I am confident that with our renewed partnership, the deliberations on the 2020 Budget shall be completed before the end of 2019 so that the Appropriation Act will come into effect by the 1st of January.

46. Some of the key capital spending allocations in the 2020 Budget include:

a. Works and Housing: N262 billion;

b. Power: N127 billion;

c. Transportation: N123 billion;

d. Universal Basic Education Commission: N112 billion;

e. Defence: N100 billion;

f. Zonal Intervention Projects: N100 billion;

g. Agriculture and Rural Development: N83 billion;

h. Water Resources: N82 billion;

i. Niger Delta Development Commission: N81 billion;

j. Education: N48 billion;

k. Health: N46 billion;

l. Industry, Trade and Investment: N40 billion;

m. North East Development Commission: N38 billion;

n. Interior: N35 billion;

o. Social Investment Programmes: N30 billion;

p. Federal Capital Territory: N28 billion; and

q. Niger Delta Affairs Ministry: N24 billion.

47. Although Government’s actual spending has reduced, our plans to leverage private sector funding through our tax credit schemes will ensure our capital programmes are sustained.

48. For example, we launched the Road Infrastructure Tax Credit Scheme, pursuant to which I have approved the construction and rehabilitation of 19 Nigerian roads and bridges of 794.4km across 11 States. Indeed, the Scheme has attracted private investment of over N205 billion and the first set of tax credits are being processed by the Federal Ministry of Finance, Budget and National Planning.

49. As I mentioned during my Independence Day Speech, under the Presidential Power Initiative, we will modernise the National Grid in 3 phases; starting from 5 Gigawatts to 7 Gigawatts, then to 11 Gigawatts by 2023, and finally 25 Gigawatts afterwards in collaboration with the German Government and Siemens.

BUDGET DEFICIT

50. Budget deficit is projected to be N2.18 trillion in 2020. This includes drawdowns on project-tied loans and the related capital expenditure.

51. This represents 1.52 percent of estimated GDP, well below the 3 percent threshold set by the Fiscal Responsibility Act of 2007, and in line with the ERGP target of 1.96 percent.

52. The deficit will be financed by new foreign and domestic borrowings, Privatization Proceeds, signature bonuses and drawdowns on the loans secured for specific development projects.

DEBT SERVICE

53. Nigeria remains committed to meeting its debt service obligations. Accordingly, we provided the sum of N2.45 trillion for debt service. Of this amount, 71 percent is to service domestic debt which accounts for about 68 percent of the total debt. The sum of N296 billion is provided for the Sinking Fund to retire maturing bonds issued to local contractors.

54. I am confident that our aggressive and re-energised revenue drive will maintain debt-revenue ratio at acceptable and manageable levels. We will also continue to be innovative in our borrowings by using instruments such as Sukuk, Green Bonds and Diaspora Bonds.

SOCIAL INVESTMENT PROGRAMME

55. Our government remains committed to ensuring the equitable sharing of economic prosperity. Our focus on inclusive growth and shared prosperity underscores our keen interest in catering for the poor and most vulnerable. Accordingly, we are revamping and improving the implementation of the National Social Investment Programme through the newly created Ministry of Humanitarian Affairs, Disaster Management and Social Development.

56. The National Social Investment Programme is already creating jobs and economic opportunity for local farmers and cooks, providing funding to artisans, traders, youths, and supporting small businesses with business education and mentoring.

57. The provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2020 Budget. Furthermore, to fast track the rebuilding efforts in the North East region, a provision of N37.83 billion has been made for the North East Development Commission.

OTHER STRATEGIC PRIORITIES IN 2020

58. The 2020 Budget is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion. We are optimistic of attaining higher and more inclusive GDP growth in order to achieve our objective of massive job creation and lifting many of our citizens out of poverty.

59. The efficiency of port operations will also be enhanced by implementing a single customs window, speeding up vessel and cargo handling and issuing more licenses to build modern terminals in existing ports, especially outside Lagos.

60. Furthermore, completing the reforms to the governance and fiscal terms of the Petroleum Industry will provide certainty and attract further investments into the sector. A consequence of this will be increase in jobs and in government’s take. I therefore seek your support in passing into law two Petroleum Industry Executive Bills I will be forwarding to you shortly.

61. In addition, we need to quickly review the fiscal terms for deep offshore oil fields to reflect the current realities and for more revenue to accrue to the government. The Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2018, was submitted to the 8th National Assembly in June 2018 but was unfortunately not passed into law.

62. I will be re-forwarding the Bill to this Assembly very shortly and therefore urge you to pass it. We estimate that this effort can generate at least 500 million US dollars additional revenue for the Federal Government in 2020, and over one billion dollars from 2021.

63. Whilst the Budget is our principal fiscal tool to achieve these socio-economic development targets, we remain committed to prudently planning for our future economic prosperity. In this regard, I have directed the reconstituted Ministry of Finance, Budget and National Planning to commence preparations towards the development of successor medium – and long-term economic development plans, particularly as the Nigeria Vision 20-2020 and the ERGP expire next year.

CONCLUSION

64. Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the National Assembly, this speech would be incomplete without, once again, commending the patriotic resolve of the 9th National Assembly to collaborate with the Executive in the effort to deliver inclusive growth and enhance the welfare our people. I assure you of the strong commitment of the Executive to deepen the relationship with the National Assembly.

65. As you review the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), as well as the 2020 Budget estimates, we believe that the legislative process will be quick, so as to restore the country to the January-December financial year.

66. It is with great pleasure therefore, that I lay before this Distinguished Joint Session of the National Assembly, the 2020 Budget Proposals of the Federal Government of Nigeria.

67. I thank you most sincerely for your attention.

68. May God bless the Federal Republic of Nigeria.

Share:

Read More

“I was given a resounding welcome by Ndigbo in Germany and everything went smoothly until some men, who identified themselves as IPOB members stormed the venue and began to complain about the killings in the South East, stressing that there would be no Igbo event at the venue.

“I tried to engage them, but when they became unruly, I had to leave the venue. The organisers also invited the police and I was accompanied out of the venue,” Ekweremadu said.

Speaking further, Ekweremadu said: “Much as I am disappointed in their conduct, especially as I am one of the persons who have spoken up on justice for Ndigbo, the Python Dance, judicial killings in Igbo land and elsewhere both on the floor of the Senate and in my written and personal engagements with the Presidency as well as rallied the South East Senate Caucus to secure Mazi Nnamdi Kanu’s release with Senator Enyinnaya Abaribe taking him on bail to douse tension in the South East, I nevertheless do not hold this to heart against them, for they know not what they do.

“I have received thousands of solidarity calls and messages from well-meaning Ndigbo. I want to assure them that I am hail and hearty. I have also spoken with the Nigerian Ambassador to Germany, Ambassador Yusuf Tuggar”.

Share:

Read More

See Reasons IGP set to Collaborate with OPC

See Reasons IGP set to Collaborate with OPC 

Adams further recalled how the police were pivotal in ending the social menace of the dreaded Badoo cultists with the assistance of the OPC.

He further expressed joy that the security agencies are now in good terms despite the confrontations that occurred between the duo in the year 2000 and 2004.

On IGP’s community policing initiative, Adams said that the OPC would work with the newly established special squad to be deployed to the South-West.

“My people know the territory very well; we are ready, willing, and able to confront criminals. Indeed, we are excited about the collaboration with the Nigeria Police and will contribute our best to ensure the region is safe and secured”, he added.

Members of the delegation included the Officer in Charge, Special Anti-Robbery Squad (SARS) in Lagos, CSP Peter Gana and the Commander, Seme Border Patrol, CSP Ogechi Moses Udu.

Adams received them alongside former Special Adviser to ex President Olusegun Obasanjo, Akin Osuntokun; OPC Director of Mobilisation, Comrade Dauda Asikolaye; Mogaji Gboyega Adejumo; Osi Aare Ona Kakanfo, Gani Kola Balogun, among others.

Share:

Read More

Page 2

In Lapal, Niger State; Gboko, Benue State; Maitagari, Jigawa State and Ughelli, Delta State, local rice sells for N18,000/50kg, N11,000/50kg, N19,000/50kg and N23,000/50kg bag, respectively.

In Egbeda Market in Lagos, local rice sells for about N18, 000; in Umuahia main market, Abia State, it sells for N22, 000.

The popular Ofada rice, consumed for its rich nutritional value and great flavour, sells for N28, 000 per 50kg bag and between N2, 800 and N3, 500 per 5kg bag.

This was not the case in July as data from Nigerian agriculture produce portals show.

In July, imported rice was N17, 000; local rice sold for between N11, 000 and N15, 000 for 50kg bag.

Other staples such as noodles, chicken and mackerel (ice fish) have also witnessed price increases.

Mackerel, for instance, has increased from between N950 and N1,000 per kilo to N1, 200/kilo. The price of noodles has moved from between N1,800 and N1,950 per carton to N2,100.

The breeder agriculture chicken sold for N4,500 in October, according to the National Bureau of Statistics, currently sells for between N5,000 and N5, 500.

The NBS in its Consumer Price Index which measures inflation stated that inflation rate hit 11.61 per cent in October from 11.24 in September, increasing by 0.37 per cent.

The bureau stated that this was the highest increase in eight months.

Some consumers said it would be tough to buy food items for the Yuletide season.

One of them, a housewife, Buky Olaoye, said, “The only way to do it is to buy items from far away markets where things are cheaper. Instead of buying foodstuffs in Ikeja, for instance, we will have to buy from Oyingbo or Egbeda.

“Also, it will be wise for two or more people to come together and buy in bulk and then share items.”

The Director General, Lagos Chamber of Commerce and Industry, Mr Muda Yusuf, said the months ahead would be tough for consumers.

He said at this time of the year, due to high demand ahead of the festive season, rice and other staples usually witnessed increase in price.

Yusuf said, “However, this year has been more severe because of the border closure as a large supply of food items comes from neighbouring countries and once that supply is suddenly cut off, then it leads to scarcity.

“Things will likely continue to be tight for consumers up till early next year and it affects other commodities apart from rice as people try to find cheaper alternatives.”

He advised the government to intensify efforts at boosting local production.

He said, “Productivity is still very low. Many farmers are still relying on the traditional method of farming. That cannot feed 200 million people.

“Government should do something fast because this is a real social problem. The government should consider the plight of those who are paying the high prices.”

Share:

Read More