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No Provision Yet for COVID-19 Vaccines In 2021 Budget, Says Finance Minister

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Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, has said that there is no provision in the 2021 Budget to fund the acquisition of COVID-19 vaccines.

The minister, during a virtual presentation of the 2021 Budget in Abuja, however, explained that the federal government is working on the type and quantity of COVID-19 vaccines to procure, while her ministry and the Ministry of Health will meet to finalize an amount to be allocated to vaccine procurement within the next two weeks.

Also, the 2020 Finance Act recently signed into law by President Muhammadu Buhari has exempted workers within the minimum wage bracket of N30, 000 from personal income tax.

The Act, which amended no fewer than 14 different fiscal laws, now extends the implementation of the Public Procurement Act to the National Assembly and the judiciary.

Nigeria is expected to receive about 100,000 doses of the Pfizer and BioNTech approved COVID-19 vaccines by the end of January.

In addition, the country, under phase two of its COVID-19 vaccination scheme, will get 42 million extra doses of vaccines through the COVAX facility.

The federal government is targeting to vaccinate about 40 percent of Nigeria’s population in 2021.

Ahmed expressed the commitment of the National Assembly to provide a supplementary budget for additional spending on COVID-19 vaccines if needed.

She said: “We agreed that the effort needed to be done so that we have clarity as to whether the provisions in the budget will be adequate or we have to make additional provisions by way of a special supplementary budget to make more provisions for COVID-19 vaccinations.”

Responding to a question on whether there was a provision for fuel subsidy in the 2021 budget, Ahmed stated that no such provision was made for it.
She also foreclosed subsidy on electricity due to the recent suspension of the hike in the electricity tariff.

The minister, however, added that the Finance Act, among others, exempts workers within the N30,000 minimum wage bracket and below from personal income tax deductions.

According to her, another key provision in the Act is the exemption of all micro and small companies earning N25 million or less as annual turnover from paying the Tertiary Education Tax.

In addition, the Act excluded commercial airline tickets, commercial aircraft spare parts and components; interests in land and buildings; animal feed and hire, rental or lease of agriculture equipment for agricultural purposes from a 7.5 percent Value Added Tax (VAT) charge.

She said: “The key guiding principle of the Finance Act 2020 is to ensure that there is a balance between broader macroeconomic strategies to attract investment, grow the economy, create jobs as well as provide immediate fiscal strategies for accelerated domestic revenue mobilization, in response to the COVID-19 pandemic and the domestic/global economic downturn.

“Specifically, the Finance Act 2020 adopts counter-cyclical fiscal policies in response to the COVID-19 pandemic by providing fiscal relief for taxpayers; reforms fiscal incentive policies to prioritize job creation and accelerate economic recovery and growth; and fosters closer coordination of monetary, trade and fiscal policies.”

Ahmed added that the 2020 Finance Act also provided for the establishment of a N500 billion crisis Intervention Fund as well as other sources approved by the National Assembly to fund the federal government’s expenditures.

Proceeds from unclaimed dividends of listed companies and unutilized amounts in dormant bank accounts outstanding for six years or more will also be channeled to the fund.

The unclaimed dividends and bank balances are subject to a perpetual trust to be managed by the Debt Management Office (DMO), with the governing council to be chaired by the finance minister and co-chaired by a nominee from the organized private sector who is of impeccable integrity and reputation.

Ahmed, however, added that genuine beneficiaries will be able to claim their funds back from the federal government at any time.

Speaking on the performance of the revised 2020 Budget, the minister said the federal government expended a total of N1.8 trillion on the execution of capital projects.

According to her, N1.8 trillion represents about 89 percent of the total provision for capital projects.

She explained that out of the amount spent, N118.37 billion was released for COVID-19-related capital expenditure.

Ahmed said while the federal government projected N9.97 trillion expenditure for 2020, it spent about N10.08 trillion, representing 101 percent performance.

Debt service, she also stated, gulped N3.27 trillion while personnel cost, including salaries and pensions, accounted for N3.19 trillion.

On the key assumptions of the 2021 Budget, the minister said the parameters were arrived at after a careful analysis of external domestic trends.

She noted that the crude oil price benchmark was retained at $40 per barrel although the World Bank forecasts $44 per barrel average crude oil price in 2021.

She added that crude oil production is projected to increase from 1.80 million barrels per day (mbpd) in 2020 to 1.86mbpd in 2021, as economies recover from a recession, and moderated by the Organisation of Petroleum Exporting Countries (OPEC) quota agreements.

Ahmed stated that the aggregate revenue available to fund the N13.5 trillion 2021 budget is projected at N7.99 trillion (36.9 percent higher than the 2020 projection of N5.84 trillion).

To promote fiscal transparency, accountability, and comprehensiveness, she said the budgets of 60 Government-owned Enterprises (GOEs) are integrated in the federal government’s 2021 Budget proposal.

“In aggregate, 30% of projected revenues is to come from oil-related sources while 70% is to be earned from non-oil sources. Overall, the size of the budget has been constrained by our relatively low revenues,” she added.

According to her, the 2021 aggregate federal government expenditure (inclusive of GOEs and project-tied loans) is projected to be N13.59 trillion, which is 25.7 percent higher than the revised 2020 Budget.

Also, the recurrent (non-debt) spending is estimated to amount to N5.99 trillion, representing 44.1 percent of total expenditure, and 13.3 percent higher than the 2020 revised estimates (mainly reflecting increases in salaries and pensions).

The minister also explained that the deficit of N5.6 trillion will be funded via domestic and external borrowings of N2.34 trillion apiece.

She said N2.5 billion is also expected as privatization proceeds.

The budget also has an aggregate capital expenditure of N4.37 trillion or 32.2 percent of total expenditure, which is 62.9 percent higher than the 2020 Revised Budget, inclusive of the capital component of statutory transfers and GOEs.

At N3.32 trillion, the provision for debt service for 2021 is 24.5 percent of total expenditure and 12.6 percent higher than the 2020 revised budget.

The minister also put the provision to retire maturing bonds to local contractors/suppliers at N200 billion.

 

BIG STORY

National Assembly Passes Life Imprisonment Bill For Nigerian Drug Traffickers

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In a bid to tackle drug-related crimes, the National Assembly has amended the National Drug Law Enforcement Agency (NDLEA) Act, introducing life imprisonment for drug offenders and traffickers.

This comes after the Senate and House of Representatives adopted the harmonised report on the amendment.

Senator Tahir Monguno, Chairman of the Senate Conference Committee, presented the report, highlighting that the amendment introduces stricter penalties to deter drug-related crimes.

“Any person who unlawfully engages in the storage, custody, movement, carriage or concealment of dangerous drugs or controlled substances and, while doing so, is armed with an offensive weapon or disguised in any manner, commits an offence under this Act and is liable, upon conviction, to life imprisonment,” Monguno said.

The Senate approved the amendment through a voice vote during Thursday’s plenary, which was presided over by Deputy Senate President Barau Jibrin.

In addition, the Senate passed the Revenue Mobilisation, Allocation, and Fiscal Commission Bill, 2024, aimed at replacing the 2004 RMAFC Act. Yahaya Abdullahi, Chairman of the Senate Committee on National Planning and Economic Affairs, stressed the need for the commission’s reform, citing Nigeria’s declining revenue and increasing population.

“The Act, last revised over 20 years ago, no longer reflects Nigeria’s evolving economic realities. This bill proposes additional funding and a restructured operational framework for the commission to improve its efficiency,” Abdullahi explained.

He further emphasised the need for adequate funding from the Federation Account for the RMAFC to effectively carry out its constitutional duties.

The bill, passed after deliberations and a majority vote, now awaits President Bola Tinubu’s assent to become law.

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UPDATE: We’re Ready To Provide Evidence For Trial Of Simon Ekpa — Enugu Government

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The Enugu State Government has expressed its readiness and willingness to provide evidence to assist in the prosecution of Simon Ekpa, who was arrested in Finland on Thursday over allegations of sponsoring terrorism in Nigeria.

Enugu State Government made this offer in a statement released by the Secretary to the State Government, Prof. Chidiebere Onyia, on Friday.

In the statement, the Enugu State Government also commended the Government of the Republic of Finland for the arrest of Ekpa, whom it described as “the Finland-based leader of the criminal gang, Autopilots.”

The Enugu State Government further referred to Simon Ekpa as “a common criminal, con man, and terrorist, who has no interest of Igbo people at heart.”

It added that Ekpa “is a murderer and fraudster, who delights in killing his people and living large off their misery.”

“Enugu State was ready and willing to provide evidence of Ekpa-sponsored atrocities against Ndigbo to aid his trial and conviction, whether in Finland or Nigeria.”

“The Enugu State Government welcomes the arrest of the Finland-based terrorist, Simon Ekpa.”

“His arrest and trial will no doubt go a long way in strengthening peace, security, and stability in all parts of the South East.”

“This arrest is in line with the demand of Governor Peter Mbah Administration, which has repeatedly made it known that Ekpa is a megalomaniac, common criminal, murderer, and fraudster, who takes joy in feeding fat on the manipulated emotions of Ndigbo and inflicting misery on the South East region.”

“Ekpa has for long, and unfortunately from Finland, made a living by creating a siege climate and mentality in the South East, destroying lives, property, and the Igbo trademark of entrepreneurship and hard work.”

“He thrives on manipulating, exploiting, and extorting the people on the pretext of fighting for their interest and for the restoration of Biafra,” the government said.

Ekpa was arrested and detained alongside four other suspects by the government of Finland on charges of sponsoring terrorism in Nigeria, according to local newspapers in the European country.

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BIG STORY

Much Ado About Meddlesome Minions, And Messengers Of Misinformation — By Tayo Williams

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There is a growing phalanx of pseudo-intellectuals parading the social media space with faux and fictitious knowledge of the indigenous oil and gas industry, and it is scary because of the grave danger they portend and present for the average Nigerian.

From X (formerly known as Twitter) to Facebook and even the photos and videos-sharing site, Instagram, they abound, in their inglorious number, lending their platforms to deliberately distort facts and spread misinformation especially to favour the narratives propounded by popular Nigerian businessman Aliko Dangote, owner of the Dangote Petroleum Refinery.

Since the refinery began operations earlier in the year, it has been one week, one controversy allegedly orchestrated by Dangote in a brazen attempt to arm-twist the Nigerian National Petroleum Corporation Limited, NNPCL, into playing by his rules.

Those conversant with the modus operandi of Dangote and his refinery say the long-drawn warfare with every institution and individual in the oil and gas value chain is nothing but a self-seeking and mindless profit maximisation tactic.

Whilst nobody begrudges Dangote’s drive for profit as a businessman, perhaps he needs to be reminded that the NNPC has a mandate to ensure and provide energy security in a way that is affordable and sustainable for the generality of Nigerians. And, the NNPCL management has declared in very unambiguous terms that it would not pander to the din of the market whether orchestrated by Dangote, his rampaging minions or anyone else.

The truth, however, is that there is an increasing army of vacuous, vicious, and vile individuals strutting the social media space defending and propagating outright and outlandish falsehoods. Of particular concern is one Kelvin Emmanuel who has become the unofficial mouthpiece of the Dangote Refinery. Going from one media house to the other, he pulls figures out of the air and projects obnoxious untruths on hapless Nigerians. With the backing of his paymaster’s billions, it is no surprise that this otherwise irrelevant and fatuous character now commands appearances on major television stations.

But it is on X that he has made lying glibly and gratuitously the Holy Grail. He once premised Dangote’s inability to secure feedstock for his refinery on the government and the NNPCL. While peddling this untruth, he conveniently forgets that the refinery had a seven-year window, during its construction phase, to lock in feedstock supplies that could last a minimum of five years. Dangote did none of that. As it would later unfold, his game plan, which Emmanuel glossed over, was to monopolise equity oil and production quotas to serve his business interests.

Another deliberate misinformation from the Dangote camp was the allegation that International Oil Companies (IOCs) and other industry players were trying to sabotage his interests. Apart from being an investor in the Dangote Refinery, the NNPC still supplies gas to various Dangote companies across Nigeria. How can anyone or any institution jeopardise their investment? What further proof of faith does Dangote and his minions need to know that the NNPC is their cheerleader, and is here to make operating in the industry seamless and a win-win for all?

Echoing Dangote’s baseless stance, Emmanuel also called for the sack of Mr. Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), regulators of Nigeria’s midstream and downstream value chain. By Emmanuel’s warped reckoning, Ahmed had no locus to speak against Dangote or his enterprise because the latter questioned the quality of the product from Dangote Refinery and other local refineries in comparison with imported ones. Of course, Emmanuel’s was a lone voice in the wilderness because those who understand the invaluable role that the NMDPRA plays in the industry did not as much as dignify his tirade with a glance.

In a robust response to Emmanuel’s groundswell of egregious lies, Ibrahim Y. Kabo, a petroleum engineer based in Abuja, described him as “Someone who has not seen the inside of a refinery before Dangote built one, let alone understood the mechanism of the energy industry, …(yet) assuming the role of an authority in oil and gas matters.”

He went further to lampoon Emmanuel for stating that only Dangote Refinery’s products meet specifications while others are all sub-standard. “The obvious question is: whose specifications? For a refinery that has barely made four of seven pre-inauguration certifications, it sounds somehow laughable to suddenly assume the role of regulator in an industry you’ve barely entered,” Kabo said.

In the article, entitled, “The Hand of Aliko, the Voice of Kelvin: Inside Dangote Refinery’s Media Stunt Lab”, Kabo declared that from all Emmanuel’s interviews and pretensions to be an industry expert, one thing is obvious: “He lacks an understanding of both the mandate and the reach of NNPC as a national oil company.”

Kabo adds that, “Downstream is the least of NNPC’s business interests. The mandate, as per PIA (Petroleum Industry Act), is to facilitate both the extraction and commercialization of Nigeria’s oil and gas resources. 20 billion dollars may be a lot, but NNPC and industry regulators routinely handle projects of that magnitude. At best, Dangote and (Emmanuel’s) ranting are an irritation. I believe that’s why NNPC openly declared it was not interested in being Dangote’s off-taker.”

Like the Yoruba saying goes, derision does not stop the sweetness of the honey. The meddlesome minions and messengers of misinformation can continue dancing naked in the marketplace, but what is most important is that the NNPCL has assured that it will not cease doing everything in its capacity “to harness the possibilities of oil and gas, address energy demand and drive the national economy, and become the number one oil producer and supplier in Africa.”

 

Tayo Williams is a Lagos-based media executive

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