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Approve N2.55trn For Petrol Subsidy Payments – Buhari To Senate

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In 2022, President Muhammadu Buhari has asked for an additional N2.557 trillion in funding for petrol subsidy payments.

In a letter to the national assembly, the president stated this, requesting consideration and approval to accommodate the additional fuel subsidy funding.

The letter requested a budget change for 2022.

On Wednesday, Senate President Ahmad Lawan read Buhari’s letter to the nation’s upper body.

To make up for the subsidy shortage, the federal government suggested an 18-month extension for the implementation of the petroleum industry law.

If the national parliament approves the bill, the government would continue to fund the pricey PMS subsidy, which cost N1.4 trillion in 2021.

“It has become necessary to present this amendment proposal considering the impacts of the recent suspension of the Petroleum Motor Spirit (PMS) subsidy removal and the adverse implications that some changes made by the National Assembly in the 2022 Appropriation Act could have for the successful implementation of the budget,” the letter reads.

“It is important to restore the provisions made for various key capital projects in the 2022 Executive Proposal (see details in Schedule l) that were cut by the National Assembly.”

According to him, this is to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due to reduced funding.

“It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme to meet the Federal Government’s commitment under the financing plan agreed with the World Bank,” he said.

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“In addition, it is necessary to reinstate the four (4) capital projects totaling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources that were removed in the 2022 Appropriation Act.
“Furthermore, there is critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth (see Schedule I).

“You will agree with me that the inclusion of National Assembly’s expenditures in the Executive Budget negates the principles of separation of Powers and financial autonomy of the Legislature. It is therefore necessary to transfer the National Assembly’s expenditures totaling N16.59 billion in the Service Wide Vote to the National Assembly Statutory Transfer provision (see Schedule l).

“It is also imperative to reinstate the N22.0 billion cut from the provision for Sinking Fund to Retire Mature Loans to ensure that government can meet its obligations under already issued bonds as and when they mature.

“The cuts made from provisions for the recurrent spending of Nigeria’s Foreign Missions, which are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals.

“Similarly, the reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands could create serious issues for government. It is therefore imperative that these provisions be restored as proposed (see Schedule II).

“It is also absolutely necessary to remove all capital projects is that replicated in the 2022 Appropriation Act; 139 out of the 254 such projects totaling N13.24 billion have been identified to be deleted from the budget.

“Some significant and non-mandated projects were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation and Office of the Head of Civil Service of the Federation (see Schedule III). There are several other projects that have been included by the National Assembly in the budgets of agencies that are outside their mandate areas. The Ministry of Finance, Budget, and National Planning has been directed to work with your relevant Committees to comprehensively identify and realign all such misplaced projects.

“It is also necessary to restore the titles/descriptions of 32 projects in the Appropriation Act to the titles contained in the Executive Proposal for the Ministry of Water Resources (see Schedule IV) in furtherance of our efforts to complete and put to use critical agenda projects.”

Buhari said while N106 billion provided in the supplementary bill would be used as capital expenditure, N43.87billion would be spent on recurrent expenditures.

“The Appropriation Amendment request is for a total sum of N106,161,499,052 (One hundred and six billion, one hundred and sixty-one million, four hundred and ninety-nine thousand, and fifty-two Naira only) for Capital Expenditures and N43,870,592,044 (Forty-three billion, eight hundred and seventy million, five hundred and ninety-two thousand, and forty-four Naira only) for Recurrent Expenditures. I, therefore, request the National Assembly to make the above amendments without increasing the budget deficit. I urge you to roll back some of the N887.99 billion of projects earlier inserted in the budget by the National Assembly to accommodate these amendments,” he added.

“However, following the suspension of the PMS subsidy removal, the 2022 Budget Framework has been revised to fully provide for PMS subsidy (see Schedule V). An additional provision of N2.557 trillion will be required to fund the petrol subsidy in 2022. Consequently, the Federation ACCOunt (Main Pool) revenue for the three tiers of government is projected to decline by N2.00 trillion, while FGN’s share from the Account is projected to reduce by N1.05 trillion. Therefore, the amount available to fund the FGN Budget is projected to decline by N969.09 billion.

“Aggregate expenditure is projected to increase by N45.85 billion, due to additional domestic debt service provision of N102.5 billion net of the reductions in Statutory Transfers by N56.67 billion, as follows: NDDC, by N12.61 billion from N102.78 billion to N90.18 billion; NEDC, by N5.90 billion from N48.08 billion to N42.18 billion; UBEC, by N19.08 billion from N112.29 billion to N93.21 billion; Basic Health Care Fund, byN 9.54 billion from N56.14 billion to N46.60 billion; and NASENI, by N9.54 billion from N56.14 billion to N46.60 billion.

“Total budget deficit is projected to increase by N1.01 trillion to N7.40 trillion, representing 4.01% of GDP. The incremental deficit will be financed by new borrowings from the domestic market.

“Equally, it is imperative that Clause 10 of the 2022 Appropriation Act which stipulates that the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) are authorized to charge and defray from all money standing in credit to the units as revenues, penalties or sanctions at 10% for the technical setup and operational cost at the units in this financial year be repealed.

“This clause is in conflict with the Act establishing these Agencies, as well as some other laws and financial regulations of the government. These are neither Revenue Generating Agencies nor Regulatory Bodies that generate revenue or charge penalty fees. They are fully funded (Personnel, Overhead, and Capital) by Government through Budgetary provisions.

“The Fiscal Responsibility Act 2007, as well as the Finance Act 2021, require these Agencies to remit fully any recovered funds to the Consolidated Revenue Fund (CRF). This clause may lay dangerous precedence, and spark clamors for similar treatment by other anti-corruption agencies.

“Also, Clause 11 stipulates that “Notwithstanding the provisions of any other law in force, Nigerian Embassies and Missions are authorized to expend funds allocated to them under the Capital components without having to seek approval of the Ministry of Foreign Affairs” should likewise be repealed. It too is inconsistent with extant Financial Regulations and the Public Procurement Act, which set thresholds for approving officers and Parastatal / Ministerial Tenders Boards for awards of Contracts for the procurement of goods and Services. This also amounts to an intrusion of the Legislature into what is an executive function.

“Given the urgency of the request for amendments, I seek the cooperation of the National Assembly for expeditious legislative action on the 2022 Appropriation Amendment Proposal in order to sustain the gains of an early passage of the budget.”‘

BIG STORY

Keyamo Inaugurates Consumer Protection Portal, Charges NCAA To Address Ticket Refund Issues Within 24hrs

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Festus Keyamo, the Minister of Aviation and Aerospace Development, has officially launched the consumer protection portal of the Nigeria Civil Aviation Authority (NCAA) in Lagos.

This innovative portal is designed to provide travelers with a hassle-free way to lodge complaints online and track the resolution process.

Speaking at the launch, Keyamo emphasized the importance of swift action, directing the NCAA to address airline ticket refunds owed to passengers by airlines within 24 hours.

This move aims to alleviate the struggles many passengers have faced in reclaiming funds for flights booked from airlines that are no longer operating.

With this platform, travelers can electronically file complaints, track the resolution process, and monitor the on-time performance of all airlines operating in Nigeria.

“I am not unaware of the complaints of people whose money has not been refunded by certain airlines that have stopped operations due to safety concerns,” Keyamo said.

“I receive a huge number of such complaints in my emails, text messages, and direct messages. I have been a lawyer of the federal republic for over 30 years before I was called to serve my fatherland. People find a way to send these complaints to me and that is why I receive some of these complaints directly.

“For the airlines that have not refunded passengers’ money, there must be a public statement by the NCAA by the end of Friday latest.

“Let the public know what is happening to that money. I know you have resolved that. Let’s not pretend as if we are not hearing anything about this. People bought tickets before the airlines ran into troubled waters. What happened to their money? What plans do you have to refund them? This is part of consumer protection.

“The NCAA should come out with a public statement to show what they are doing about resolving the issue.”

On protecting travellers, Keyamo said the portal is expected to streamline the complaints process and ensure efficiency in the aviation sector.

He commended the NCAA’s leadership, particularly its consumer protection directorate, for the initiative, noting that passenger satisfaction is crucial for the industry’s viability.

“The final thing that we must achieve in the sector is that the person boarding the aircraft must have good experience, must feel the change either in terms of prices, environment or experience. Everybody is working for that final consumer, including myself,” he said.

“Let it be clear that we are all consumer protection officers and it’s not only for those gentlemen and ladies in uniform.

“As a frequent flyer myself, I have seen firsthand, the rage of passengers who are either disappointed by delayed flights, cancellations or some ugly experiences on those flights. I have seen the rage and this is a means by which they can ventilate that rage.”

On his part, Chris Najomo, acting director-general of the NCAA, praised the initiative as a vital step in protecting the rights of aviation consumers in Nigeria.

“In today’s rapidly evolving marketplace, consumers face myriads of challenges. From being unaware of their rights to navigating complex regulations to addressing poor services or unfair practices,” Najomo said.

“Hence, the need for a robust system to protect and empower consumers has never been more critical.”

On July 20, the NCAA announced its plans to launch a consumer protection portal in August to address complaints within the aviation sector.

However, the authority postponed the launch of the portal to September 19.

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BIG STORY

Coca-Cola Announces Plan To Invest $1bn In Nigeria

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Coca-Cola Hellenic Bottling Company says it will invest $1 billion in Nigeria over the next five years.

The investment commitment was made during a meeting with Coca-Cola’s global leadership team, including John Murphy, president and chief financial officer, and Segun Apata, chairman of Nigerian Bottling Company.

Reacting to the development in a statement on Thursday, President Bola Tinubu commended Coca-Cola for its long-standing partnership with Nigeria and for employing over 3,000 people across nine production facilities.

Tinubu said the investment highlights his administration’s commitment to creating a robust financial system and a business-friendly economy.

“We are business-friendly, and as I said at my inauguration, we must create an environment of easy-in and easy-out for businesses,” the statement reads.

“We are building a financial system where you can invest, re-invest, and repatriate all your dividends. I have a firm belief in that.”

Tinubu said private sector partnerships are crucial to his government’s reforms aimed at improving the business environment.

He pledged to continue to support Coca-Cola for expanding its investments in Nigeria and addressing environmental issues, including climate change.

Murphy, speaking on Coca-Cola’s impact in Nigeria, said the company generates ₦320 billion annually through nearly 300,000 customers and contributes almost ₦90 billion in revenue to the Nigerian government.

“We are very proud of the growth of the business over a long period and its impact on the daily lives of many Nigerians,” he said.

Zoran Bogdanovic, CEO of Coca-Cola Hellenic Bottling Company, attributed the company’s $1 billion investment pledge to its confidence in the Nigerian government’s policies.

“Mr President, in your inaugural address, we were very pleased to hear of your invitation for foreign investors to invest and your assurance that foreign businesses can repatriate dividends and profits,” the CEO said.

“That assurance gives us the confidence to continue our investments. Since 2013, we have invested $1.5 billion in Nigeria in capacity expansion, transformation of our supply chain infrastructure capabilities, training and development.

“I am very pleased to announce that, with a predictable and enabling environment in place, we plan to invest an additional $1 billion over the next five years.”

Bogdanovic said Nigeria’s potential is tremendous, pledging the company’s commitment to work with the government to realise it.

In November 2021, the beverage manufacturer had pledged to inject $1 billion into Nigeria’s economy.

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BIG STORY

NCC To Deploy 6G Spectrum To Expand Wi-Fi Access In Nigeria

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The Nigerian Communications Commission (NCC) is planning to deploy the 6G spectrum in Nigeria to expand access to Wi-Fi technology.

Aminu Maida, executive vice-chairman of NCC, spoke on Thursday about efficiently managing and utilizing spectrum resources at a consultative engagement forum focused on emerging technologies.

Tagged, ‘The Use of 6GHz (5925-7125) MHz for WiFi and IMT Applications in Nigeria’, the forum was held in Lagos to get stakeholders’ input and recommendations on how the new frequency can be used.

The NCC also said the forum, held annually, serves as a platform to get the support of stakeholders for its policies.

In his opening remarks, Maida, represented by Abraham Oshadami, executive commissioner of technical services at the commission, said existing spectrums (5G and 2G) are becoming overcrowded, hence the need to introduce other frequency bands.

“The 6GHz band, spanning from 5925 MHz to 7125 MHz, offers a substantial increase in available spectrum, which is crucial for supporting the growing demand for high-speed internet and advanced applications.

Wi-Fi plays a crucial role in the distribution of fixed broadband connectivity in homes, offices, and various other environments,” Maida said.

“The vast majority of home internet traffic is connected to the end-user through Wi-Fi.

In enterprise settings, Wi-Fi is essential for handling large amounts of data and simultaneously connecting large numbers of devices with improved reliability, higher data throughput, and lower latencies.

“However, the 5GHz and 2.4GHz that are being used for Wi-Fi (Wi-Fi 5) at the moment are becoming overwhelmed due to an increase in demand for capacity.

It is, therefore, imperative to identify other frequency bands to complement the 5GHz and 2.4GHz.”

Speaking on the benefits, Maida said the proposed frequency would increase capacity, allowing for the use of applications such as virtual reality, augmented reality, which existing spectrums “will not carry”.

“With Wi-Fi 6 introduction, you have more capacity opened up for people to be able to connect and have seamless access to Wi-Fi and remember, this is unlicensed, so it is free.

In the long run, it’ll bring down the cost of connecting to Wi-Fi.”

Caroline Alenoghena, a professor of telecommunications engineering at the Federal University of Technology, Minna, said the introduction of a new spectrum is necessary to address the congestion in the present Wi-Fi frequencies.

The professor said opening up the 6G band would create “opportunities for start-ups to grow” in terms of providing digital services.

On his part, Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), said the 6G spectrum — if properly allocated — would allow more diverse technologies to be deployed.

Emoekpere said it would also democratise access to the urban, semi-rural, and rural areas.

“Foreseeable challenges are things like infrastructure requirements, the whole of investment that’s required, competing technologies, because some of these technologies are still being developed,” the ATCON president said.

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