News

Buhari Reveals N9.73trn Available To Fund N20.51trn 2023 Budget

Published

2 years ago

October 7, 2022

Strong indications have emerged that the new political dispensation in 2023 might have to think out of the box to raise revenue to fund the N20.51 trillion budget presented to the National Assembly by President Muhammadu Buhari on Friday.

The funding crisis became obvious as President Buhari revealed that the total revenue available in the coffers of the outgoing administration stood at just N9.73 trillion.

Meanwhile, there are also indications that the federal government is planning to finance the deficit through new borrowings totalling N8.80 trillion.

Some of these initiatives were contained in the 2023 budget presentation entitled “budget of fiscal consolidation and transition.”

In the fiscal projections contained in the budget, oil price benchmark was earmarked at 70 US Dollars per barrel; with daily oil production estimates of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day) and exchange rate is pegged at 435.57 Naira per US Dollar.

This is even as it was projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.

Commenting on the revenue estimates, President Buhari said fiscal assumptions and parameters, total federally-collectable revenue is estimated at 16.87 trillion Naira in 2023.

He mentioned that total federally distributable revenue is estimated at 11.09 trillion Naira in 2023, while total revenue available to fund the 2023 Federal Budget is estimated at 9.73 trillion Naira. This includes the revenues of 63 Government-Owned Enterprises.

Giving further breakdown, he said oil revenue is projected at 1.92 trillion Naira, Non-oil taxes estimated at 2.43 trillion Naira, Federal Government of Nigeria (FGN) Independent revenues are projected to be 2.21 trillion Naira. Other revenues total 762 billion Naira, while the retained revenues of the GOEs amount to N2.42 trillion Naira.

The President also noted that the 2023 Appropriation Bill aims to maintain the focus of MDAs on the revenue side of the budget and greater attention to internal revenue generation. Sustenance of revenue diversification strategy would further increase the non-oil revenue share of total revenues.”

On the planned 2033 expenditure, the President explained that “a total expenditure of 20.51 trillion Naira is proposed for the Federal Government in 2023. This includes 2.42 trillion Naira spending by Government-Owned Enterprises. The proposed 20.51 trillion Naira 2023 expenditure comprises.

He equally mentioned that Statutory Transfers of N744.11 billion; Non-debt Recurrent Costs of N8.27 trillion; Personnel Costs of N4.99 trillion; Pensions, Gratuities and Retirees’ Benefits of N854.8 billion; Overheads of N1.11 trillion; Capital Expenditure of N5.35 trillion, including the capital component of Statutory Transfers; Debt Service of N6.31 trillion; and Sinking Fund of N247.73 billion to retire certain maturing bonds were all contained in the fiscal projections for 2023.

On fiscal balance, the President further explained in the budget that, “we expect total fiscal operations of the Federal Government to result in a deficit of 10.78 trillion Naira. This represents 4.78 percent of estimated GDP, above the 3 percent threshold set by the Fiscal Responsibility Act 2007.

He said as envisaged by the law, we need to exceed this threshold considering the need to continue to tackle the existential security challenges facing the country.

According to him, plans were on to finance the deficit mainly by new borrowings totalling 8.80 trillion Naira, 206.18 billion Naira from Privatization Proceeds and 1.77 trillion Naira drawdowns on bilateral/multilateral loans secured for specific development projects/programmes.

Explaining how the government has been using loans to finance projects, the President went down memory lane, saying over time, we have resorted to borrowing to finance our fiscal gaps. We have been using loans to finance critical development projects and programmes aimed at further improving our economic environment and enhancing the delivery of public services to our people.

News

Drama As Outage Disrupts Power Minister’s Speech At N’Assembly

Published

1 hour ago

April 30, 2024

Editor

Drama played out when power supply was seized as the Minister of Power, Adebayo Adelabu, was speaking at the National Assembly.

Adelabu was fielding questions from senators at the investigative hearing on “the need to halt the increase in the price of electricity” organised by the Senate Committee on Power.

Power was, thereafter, restored in less than five minutes.

Speaking about the power interruption, the Chairman of the Senate Committee on Power, Eyinnaya Abaribe, said what the minister said about the stable electricity in the country was implicative.

He said, “You see what just happened. This is what we all experience. We the Senators experience it too and I am sure even the President does experience it at the Villa, just that he cannot speak out like we are.”

The Federal Government, through the Nigerian Electricity Regulatory Commission had on April 3, approved an increase of 340% in electricity tariff for customers under the Band A classification.

According to the NERC’s Vice Chairman, Musliu Oseni, Band A, customers will begin to pay N225 kilowatt per hour from the current N66.

According to NERC, B and A customers are those who enjoy 20 hours of electricity supply daily.

Further checks revealed that customers under this classification represent 15 per cent of the 12 million electricity customers in Nigeria.

The NERC Vice Chairman however clarified that the review would not affect customers on the other bands.

The Senate had summoned the Minister to speak on the recent tariff and justify the increase.

News

Ex-WMA President, Enabulele Honoured As Labour Hero

Published

2 hours ago

April 30, 2024

Editor

The immediate past president of the World Medical Association, Dr. Osahon Enabulele, has been honoured as a labour Hero.

He was honoured during the commissioning of Labour House, Benin , by Governor of Edo State, Mr. Godwin Obaseki, on Monday, April 29, 2024.

Presenting the award on behalf of Edo State Government and organized labour, the Deputy Governor of the state, Engr. Marvellous Omobayo, applauded the progressive leadership strides of Enabulele, and wished him greater attainments in his endeavours.

Responding, Enabulele thanked the state government and the Organized Labour for the honour done to them.

He commended Obaseki for his unparalleled commitment to the actualization of the Labour house, and called for its sustained maintenance and utilization for the purposes for which it was built.

The event climaxed with Governor Obaseki’s announcement of N70, 000:00k minimum wage for Edo State public sector workers with effect from the 1st of May, 2024.

The event was attended by members of the State Executive Council, the Speaker and members of the Edo State House of Assembly; NLC president, Comrade Joe Ajaero; Comrade Festus Osifo (TUC President).

The programme also featured the recognition of other Labour heros such as Pa Michael Imoudu, Pa Jonathan Ihonde, Comrade Festus Iyayi, Comrade Adams Oshiomhole, amongst others.

News

Tinubu, GEJ, Abdulsalami Abubakar, Others To Grace Igbinedion University 25th Anniversary

Published

3 hours ago

April 30, 2024

Editor

President Bola Tinubu; former presidents of Nigeria, Dr. Goodluck Jonathan and General Abdulsalami Abubakar (rtd.) are among dignitaries to grace the 25th anniversary of Igbinedion University, IUO, Okada, Edo State.

Vice-Chancellor of the university,
Professor Lawrence Ezemonye, , disclosed this today, Tuesday, 30th April 2024, during a world press conference held at the institution’s campus.

According to Ezemonye, President Tinubu would be the special guest of honour, while former President Jonathan would chairman the event and Abubakar would be a special guest of honour.

Reeling out activities slated for the anniversary, Ezemonye who said different activities have been lined up for the 25th anniversary, noted that the University Founder’s Day would be held on May 10th with Anniversary Colloquium, titled: ‘Re-Imagining Tertiary Education for Africa’s Present and Future Realities’.

He listed Hon. Minister of Education, Professor Tahir Mamman; H.E. Professor Mohamed Bellhocine, AU Commissioner for Education, Science, Technology and Innovation, H.E. His Excellency, Shri. G. Balasubramanian, High Commissioner of India to Nigeria, amongst others, as guest speakers.

Speaking on the 25 years journey of imparting knowledge on Nigerians and beyond, the Vice-Chancellor said at inception, IUO started with a modest figure of 115 enrolment, but has over 7,000 male and female students on campus today.

He said: “Over the years, IUO has been able to provide value and significance in the higher education landscape.

Prof. Lawrence Ezemonye (First right) alongside other principal officers of the University unveiling the 25 years anniversary logo on Tuesday, April 30, 2024.

“We are the first private university in Nigeria to produce Medical Doctors, Pharmacy and Law graduates.

“The first to produce a First Class law graduate who repeated the same feat at the Nigerian Law School and went on to become a Professor of Law, Deputy Vice Chancellor of a university and the youngest Senior Advocate of Nigeria (SAN).

“We are the first private university in Nigeria whose First Class Law graduate also obtained First Class at the Nigerian Law School (2005).

“We pioneered entrepreneurship as an academic programme in Nigeria before it was adopted by NUC as a mandatory component of the curriculum of Nigerian universities.”

Ezemonye, while noting that IUO commenced academic activities with 5 Colleges at inception, boasted that the University has expanded to 7 Colleges and 3 Schools today.

“The academic departments/programmes have witnessed exponential increase from 7 at inception to 85, made up of 34 undergraduate and 51 postgraduate programmes,” he added.

He continued: “We have produced over 16,000 graduates across disciplines spread across the globe, with records of stellar performances in their respective fields of endeavour.

“All courses/programmes are fully accredited not only by the National Universities Commission (NUC) but also by relevant professional bodies.

“Our admission quota for Medicine, Nursing and Medical Laboratory Science was recently increased by the Medical and Dental Council of Nigeria (MDCN), Nursing and Midwifery Council of Nigeria (NMCN) and the Medical Laboratory Science Council of Nigeria (MLSCN) by 100 per cent each.”