Osinbajo, Saraki, Dogara, others meet over 2017 budget

According to report, acting President Yemi Osinbajo has lobbied the leadership National Assembly, urging for the quick passage of the 2017 budget into law

This was disclosed in a statement by the spokesman of the acting president Laolu Akande.

According to Akande,

Outrage as N145b questionable items remain in 2017 budget

There is the fear that a huge part of the funds borrowed to execute the 2017 budget may end up in private pockets, as no less than 276 questionable items from 55 agencies still remain in the document.

The controversial items, estimated at nearly half of the $1billion Eurobond proceeds, appear in the form of duplications, repetitions and inexplicable headings in the 2017 budget.

2017 Budget: 115 Foreign missions to gulp N48.899bn

The Ministry of Foreign Affairs has budgeted over N48. 899 billion on 115 foreign missions abroad in the 2017 budget.
Foreign Missions have suffered a huge set back in the past one year due to lack of financial support from the ministry.
Analysis of the 2017 budget proposal showed that Nigeria’s Foreign Mission in New York led the list with the highest allocation of N1.877 billion.
Washington followed with an allocation of N1.05 billion; London received an allocation of N1.433 billion; Berlin, N743.880 million; and Madrid, N682. 286 million.
On the flip side, Nigeria Foreign Mission in Columbo, Sri Lanka, received the least allocation of N259.16 million, followed by the Mission in Lome, with N252.6 million.
Others in this category are Freetown N260.61 million and Spain, with a total allocation of N267. 84 million.
The total allocation to the Ministry of Foreign Affairs and its agencies is N66.664 billion, comprising recurrent expenditure of N56.869 billion and capital expenditure of N9.795 billion.

FG to partly fund 2017 budget with proceeds from oil licenses

 

Minister of Budget and National Planning, Senator Udo Udoma

The Minister of Budget and National Planning, Udoma Udoma, says that the Federal Government will issue new oil licences as part of efforts to explore new streams of revenues to fund the 2017 budget.

Udoma made this known when he appeared before the Senate Joint Committee on Appropriation and Finance to defend the revised Medium Term Expenditure Framework and the Fiscal Strategy Paper.

He said that the Federal Government would also review the current joint venture arrangements with oil companies, marginal oil fields as well as mount pressure on revenue generating agencies to surpass expected targets.

Udoma said a total of N10tn was being targeted by the Federal Government as revenue for the 2017 fiscal year.

According to him, out of this amount, about N5tn is expected to be generated from the sale of crude oil.

He said, “Non-oil revenues will rake in about N5.06tn.

“These revenues are expected to come from corporate and company taxes, Nigeria Liquefied Natural Gas, Stamp Duties, capital gains tax and value added tax.

“Others are Customs, excise, fees, surcharges on luxury items, special levies and Federal Government independent revenue.”

Speaking further on the budget projections, Udoma said. “I know N7tn seems larger than N6tn.

“In actual dollar term, the 2017 budget is smaller. We have had challenges in revenue generation in funding the 2016 budget.

“We are trying to get to the bottom of revenue generating agencies in order to raise more money.

“On independent revenue, we need to work with the National Assembly. The issue of 80 per cent of operating surplus is a problem.

“We need to work with the National Assembly to review certain clauses of the law. We need to be more imaginative and creative in order to get out of the problem we have with revenue generating agencies.

“We want to issue a presidential order to ensure that revenue generating agencies are unable to spend money unless payments of salaries until their budgets are passed.

“We want to be more engaging in the Niger Delta to ensure that there is peace in order for us to produce.

“We will be increasing the amount for the Amnesty Programme to the old figure. It is important to engage the people in the Niger Delta region.”

The MTEF report submitted to the Senate by the Budget Office indicated that the 2017 budget which was initially pegged at N6.7 trillion, had also been revised upward to N7.3tn.

Out of this, the FG is expected to expend N1.5tn in servicing domestic debts, however, the FG earmarked N1.3tn in the 2016 budget.

On foreign debt, the government would spend N175.9bn as against N54.5bn spent on foreign debt servicing in the 2016 budget.

On capital expenditures, the government budgeted N2.1tn.

Recurrent expenditures would gulp N1.9tn, about N1.8tn was budgeted for the same purpose in the 2016 Appropriation.

The new figure is coming in spite of claims by the government that many ghost workers had been removed from government’s payroll.

The Federal Government also intends to borrow a total of N2.3tn, out of this, N1.5tn would be sourced locally, while N1.1tn would be gotten from foreign sources.

In the 2016 budget, N1.2bn was reportedly borrowed locally, while N635.8bn was gotten through foreign borrowing.

President Muhammadu Buhari is expected to present the 2017 budget proposal on Dec. 14, before a joint session of the National Assembly.

(NAN)

2017 Budget will pull Nigeria out of recession – Buhari

President Muhammadu Buhari has appealed to Nigerians not to lose faith in the ability of his administration to make a difference in their lives, saying the 2017 Budget contains measures that will pull Nigeria out the current economic recession.

The president in his 2016 Eid-el-Maulud message to Muslim faithful, urged Nigerians not to despair as he was doing his best to redress the situation, particularly with a number of policies he had embedded in the 2017 budget proposals, which he would lay before the National Assembly on Wednesday.

He said: “As we use the memorable occasion of this celebration to reflect on our current challenges, I urge you not to lose faith in the ability of this administration to make a difference in the lives of our people.

“The 2017 Budget proposals, which I will lay before the National Assembly on Wednesday, will contain measures that we are confident will get the nation out of its economic woods.”

The president, while wishing all Muslims a happy and memorable celebration of the birth of the great Prophet, said through His (Prophet) teachings, particularly on peaceful living, tolerance, sobriety, generosity, sacrifice and honesty, and wisdom, the nation had gained immensely in building a harmonious and prosperous society.

Buhari said the universal truth of the Prophet’s values remained unchanged.

He said: “Against all odds, we have used these pillars of strength in securing a just and fair society, and our efforts are beginning to yield dividends in curbing terrorism, militancy, corruption and other crimes that devalue our humanity.”

Buhari called on Nigerians not to allow the reality of the temporary challenges to undermine “our hope, reverse our collective will to succeed, or divide us”.

Rather, Buhari said, it should remind us of “why we need to stay together, fight together and succeed together”.

According to him, we all share a vision of a better Nigeria, and we will all share in the responsibility of building the country of our dreams.

He said: “As we look forward to 2017 with hope and huge expectations, let me assure you that with collective dedication and hard work, we will overcome the mountain of economic difficulties, and return our country to the path of prosperity.”

The president described the occasion of the Prophet’s birth as, “another period of celebration, and deep reflection”.

“Celebration, because we are marking the birth of Prophet Mohammed (Peace Be Upon Him), and deep reflection, because it is another opportunity of pausing, taking a deep breath and reflecting on the current realities before us,” he added.

In Uganda, Legislators Burial to Cost Shs68 Million Each

Death always comes at a cost not just in terms of the emotions it evokes but in actual money spent. While the end is the same, the cost of the funeral will always vary depending on one's status in society. The higher the status, the more the money that will be spent on the funeral.

A lot of the costs fall on the shoulders of the bereaved, relatives and friends. For those in gainful employment, the employers will usually subsidise the funeral expenses

It is in that light that Parliament plans to spend Shs67.7m on burial expenses for each MP who dies.

Last week, Parliament invited bids to identify service providers who are interested in offering funeral services to the national assembly.

The budget

Perusal of the Parliament budget shows that Parliament has budgeted for an estimated five deaths this year, making a total of Shs338,680,000 planned expenses on burial of MPs.

Parliament's public relations manager Helen Kaweesa said yesterday that the national assembly footing burial costs of MPs is not new, but it is only that this time round, it will be provided for in the official budget. She said Parliament has been meeting costs of its dead personnel.

"The Parliamentary Commission caters for funeral expenses of its staff and members of Parliament. We have to pre-qualify service providers because it is government money and we have been doing it all along," she said.

Every three years, as per procurement law, Parliament is supposed to pre-qualify service providers to create a pool from which the national assembly can pick companies to offer services. It's the reason the advert inviting service providers was published.

Daily Monitor learnt that currently, Parliament has only one service provider, Uganda Funeral Services, and wants to add "at least two more in the pool."

"Parliament does not pay for services pronto. Last year, we lost three MPs in one week and the single service provider we have was over-stretched. Businesses in Uganda don't have a lot of money; so if you ask a service provider to cater for three funerals [in succession], yet you will pay them after three months, it becomes hard on them. We need to ease service delivery," said a Parliament official who declined to be named because he is not the spokesperson.

Speaking to Daily Monitor yesterday, Ms Regina Mukiibi, the managing director of Uganda Funeral Services, declined to divulge details of the package they usually offer to Parliament for funeral expenses.

She, however, said costs for the funeral services "depend on what someone wants to be included."

The breakdown

A breakdown of expenditure of the Shs67.7m for a dead MP includes buying a state-of-the-art casket rated as American Casket at Shs6m, Shs5.5m for the grave, Shs4.5m for Order of Service books, Shs15m on feeding mourners and Shs17.5m on allowances for police.

Ms Kaweesa said although staff of Parliament also benefit from the funeral services, it is not the same as for the MPs.

Ayivu county MP Bernard Atiku said Parliament is right to meet burial costs of MPs because every institution plans for any eventualities.

Gomba District Woman MP Sylvia Nayebare supports the proposal. She says Parliament should be able to bury its members if not for anything but a show of togetherness.

"It is right. Like any other institution, it shows harmony and togetherness. It is right only if it is not overshot. I don't think we would lose over five or more from 427 MPs," she said.

The public, however, is not agitated about the move.

"As MPs representing constituencies, they are employed by an institution. Like any employees, burial expense is a perk. However, this needs to be reasonable. With an overburdened taxpayer, such costs should be symbolic and in kind. The amounts being mooted are not only out of touch with reality but are obscene. This can create a negative backlash. Government and Parliament need not be out of sync with an overburdened populace," public relations expert Jimmy Kiberu said.

Public speaks out

Journalist and social media commentator Grace Natabalo says Parliament footing burial costs for MPs is "an unnecessary burden on the tax payers given the number of MPs in the House."

"They can afford to cater for it (individually). MPs should be able to contribute to their own funerals through insurance and then Parliament can provide extra support such as transporting the body. The MPs seem to be enjoying too many perks and there has to be a limit. We cannot cater to their every need," she said.

What they say

Helen Kaweesa, Parliament public relations manager.

"The Parliamentary Commission caters for funeral expenses of its staff and members of Parliament. We have to pre-qualify service providers because it is government money and we have been doing it all along."

Source: The Monitor

FG Approves 2017-2019 Budget Framework

As the federal government fine-tunes preparations for the 2017 budget, wednesday it approved the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2017-2019, estimating that the nation’s economy will grow at an average of 3.73 per cent in the next three years.

The Minister of Budget and National Planning, Udo Udoma, who disclosed this in Abuja, after the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari, said the economy is projected to grow by three per cent in 2017, 4.26 per cent in 2018 and 4.04 per cent in 2019.

“The reason the GDP growth rate for 2019 is slightly lower than 2018 is because it’s an election year and usually in an election year, because of the uncertainties, we have also made provisions for that,” he clarified.

The minister said government set $42.50 as a reference price in 2017 for oil and projected that it would rise to $45 in 2018 and $50 in 2019.

He said: “Government is being very conservative in terms of the reference price of crude oil, even though we are expecting it to go higher than this, but we are keeping to an extremely conservative price scenario.”

In terms of oil production, he said government would retain this year’s estimate of 2.2 million barrels per day for 2017 despite the fact that the militancy in the Niger Delta has forced oil production to below one million barrels per day.

For 2018, government remained ambitious and expects production to rise to 2.3 million barrels per day, while in 2019 it is targeting an increase to 2.4 million barrels per day.

The minister said:‎ “The Federal Executive Council meeting approved the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2017-2019.

“As you know, the Fiscal Responsibility Act requires the executive to prepare the MTEF/FSP and send it on to the National Assembly for their consideration.

“And it is on the basis of the MTEF that the next budget will be fashioned. So, in short, we have started the process of preparing the 2017 budget.

“Before the MTEF was presented to FEC for consideration, there were extensive consultations with the private sectors, governors and NGOs.

“In the 2017-2019 MTEF, the government intends to intensify efforts in pursuing a manpower driven economy.

“So we intend to intensify efforts to diversify the economy; we intend to go on with the implementation of on-going reforms in public finance; we intend to enhance the environment for ease of doing business so as to generate private sector investments.

“We intend to continue to pursue gender sensitive, pro-poor and inclusive social intervention schemes, similar to what we did in 2016 – our social intervention programmes is going to be sustained.

“We intend to devote even more resources to critical infrastructure projects, just as we did this year. So we will continue to spend more on roads, rails, transport infrastructure, ports and so on.

“We intend to focus on governance and security and we intend to maintain the zero-based budgetary approach.”

Also speaking at the briefing, ‎the Minister of Industries, Trades and Investments, Okechukwu Enelamah, said FEC also approved the ratification of the World Trade Organisation (WTO) Trade Facilitation Agreement.

He explained that the agreement was approved by all the members of WTO at the ministerial conference held in 2013.

He said: “What that agreement seeks to do is basically to lower the cost of trade generally for everybody.

“There was a clear understanding that everyone benefits from lowering the cost of doing trade, it is particularly beneficial to developing countries that want to access the international market.”

He said‎ Nigeria was one of the countries that approved the agreement.

“We have been going through the process to ratify the agreement so that it will come into effect. The idea is that the agreement will come into effect when it is ratified by two thirds of all the countries that approved it originally, we think that will happen sometime this year,” he added.

He said that given the importance of trade to Nigeria, it was appropriate that Nigeria not only ratifies the agreement but also that it should champion the cause of lowering the cost of doing businessm which the agreement seeks to achieve.

When asked to produce figures of what other sectors such as mines and agriculture would contribute to the economy in view of government’s diversification programmes, Udoma said that the MTEF included projections for other sectors, but did not disclose the figures.

He said: “Even though we want to diversify, we still have to use a particular number to plan in terms of revenue from crude oil. It doesn’t mean we don’t use numbers for other receipts. I was just reading the highlights.

“We have numbers for everything, we have numbers we expect to get from customs, VAT, independent revenue, etc. So we have numbers for all the things we expect but because oil is volatile and is an area that has caused us to be where we are today, we want to assure Nigerians that we are not going back to using high estimates even though we sense that prices may be moving towards $60 per barrel in the next year or so, we are still going to use conservative numbers.”

On the exchange rate projections, he said government would use N290 to $1 as the exchange rate in 2017.

He said: “We believe that the naira will stabilise and we believe that N290 to $1 is a fair estimate from the central bank of what the naira is worth.”

On the level of implementation of this year’s budget, the minister said: “In terms of the performance of the current budget, in terms of the capital budget, we have released over N400 billion and we are up to date in terms of the recurrent, all salaries have been paid, overheads are released, statutory transfers have been made.”

He said the government had done well in terms of implementation of the budget.

In a related development, the Emir of Kano, Alhaji Muhammad Sanusi II, has warned that the inconsistencies in the country’s economic policies by successive administrations have plunged the nation into unprecedented hardship.

Sanusi added that if Buhari does not act fast by reviewing his economic policies, his administration might end up the way of ex-President Goodluck Jonathan.

Sanusi insisted that Nigeria has to retrace its step in terms of economic policies.

He also cautioned Buhari on the activities of those he described as “voodoo economists” in the corridors of power.

Delivering a lecture in Kano yesterday at Tahir Guest Palace, during the 15th Joint Planning Board (JPB) and National Council on Development Planning organised by the Ministry of Budget and National Planning in collaboration with the Kano State Government, Sanusi said the inconsistencies in the country’s current economic policies do not favour business and investment in the country.

The emir also advised the federal government to copy Lagos in terms of formulating policies that could boost trade, business and attract investors, adding that the Lagos example could bail the country out of its current economic woes.

He decried Nigeria’s over-dependence on oil, pointing out that more investment in agriculture, the power sector, manufacturing and infrastructure development and attractive incentives to investors would enhance the growth of the nation’s economy.

According to him, “I just saw that we are always blaming the past administration, but we have also made mistakes in this administration.

“The problem is that there is nothing we are facing today that we did not know would happen. That is the truth.

“We made mistakes, many of them deliberate. We ignored every single warning. Not building roads, not building power, and other necessary infrastructure that can boost the economy and development of the country.

“We are spending 30 to 40 per cent of every naira we earn servicing debt. The new borrowings were simply recycled into much higher recurrent expenditure. The country’s GDP was growing largely due to consumer spending.

“In 2010 when I was the central bank governor, the government increased the minimum wage to N18,000. I protested but they went ahead and borrowed money to pay.

“In 2012, as CBN governor, I said that this was an unsustainable wage bill; we needed to reduce the size of public service, which fell on deaf ears.

“I believe we have started retracing our steps and we have to retrace our steps. If a policy is wrong, it is wrong and it has to be changed.”

He further advocated for the devaluation of the naira, stating that those who are advising the president on the nation’s economy are not getting it right.

In his opinion, only very few Nigerians are benefitting from the current economic policies, noting that some of them are making the rich get richer, while the poor continue to wallow in poverty.

According to him, Nigeria has also been hampered by bad trade policies which are responsible for the collapse of industries.

Sanusi further warned that the economic downtown could engender terrorism and other crimes, because millions of Nigerian youths are jobless and restiveness.