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Why FG Chose N800/Dollar Exchange Rate For 2024 Budget – Minister

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The Federal Government, on Thursday, said it settled for N800 to dollar exchange rate in the 2024 Appropriation Act after considering the average performance of the naira.

It said it avoided basing the foreign exchange benchmark in the 2024 budget on a spot rate, to avoid eventualities and uncertainties.

The Minister of Budget and National Planning, Atiku Bagudu, who spoke with State House correspondents explained that the FG had earlier chosen the projected exchange rate of N750 to the dollar in the 2024 budget which the National Assembly raised to N800 to the dollar,

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Bagudu said, “For budgeting purposes, you don’t use the spot rate of anything. Oil prices can go to 120 today, maybe there is a shortage, or maybe there is a collision between two ships that will block a channel.

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“It would be foolish to use that as a reference price, I should take a period maybe six months to one year and say let me observe this average behaviour, so you don’t use spot prices. So even with the exchange rate, it is like that.”

He explained further, “Much as we are hoping that it would soon come below, but at the time you are doing the budget, you will take a view on average performance. And that’s what we took.

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“We took an average performance of N750 on the executive side and we proposed it to the National Assembly.”

The minister also said that Tinubu regarded the National Assembly’s decision to raise the rate further considering his respect for institutions and democracy.

READ ALSO: Hope Rises For FG’s N26trn Budget As Oil Price Jumps To $81.11

“So, he respected democracy that even though it was higher than what he submitted, but the institution that says so has the authority to say so and even at the time they say 100 because it’s not an official rate it’s tidal because, with the deregulated market, you no longer have an official rate, it is much lower than even the way the markets are bidding,” the minister said.

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The minister noted that the FG is positive that its current measures would soon yield a significant increase in the supply of foreign exchange in the economy.

Bagudu also spoke on the level of borrowing to fund the deficit in the 2024 budget, saying there is a significant difference between 2024 borrowing compared to last year’s.

“In 2023, the budget anticipated a borrowing of close to N14tn. This year’s budget is N9.1 trillion. So we think that is significant.

“Because it’s 2023 took us to about 6.11 per cent of our GDP as borrowing. This one is 3.8 per cent. So the quantum had decreased,” Bagudu added.

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The former Kebbi State Governor said the FG will operate strictly within the dictates of fiscal responsibility law in the new year, which provides for the Central Bank of Nigeria to lend to the government through its Ways and Means window, only 5 per cent of the total budget.

He explained, “We will not go outside the law and borrow from ways and means, what is outside the law. So the fiscal responsibility law says, that every year, the central bank can lend the government up to 5 per cent of its budget for the year.

“So if you go out of that, you’re going outside the lawful limit, and that’s what the minister of Finance and Coordinating Minister of the Economy was very clear we are not going to do. We are not going to resort to borrowing outside the law.

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“And secondly, as much as possible, we will even borrow away from the central bank because sometimes it’s even cheaper to borrow. So, those are the two elements. So the quantum has decreased, then we will go by the book.”

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JUST IN: Confusion As DSS Invades Ogun Court, Arrests Defendants Despite Judge’s Warning

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The men of the Department of State Services have invaded an Ogun State High Court sitting in Ilaro and arrested two defendants despite the judge’s warning.

The court was presided over by Justice AA Shobayo on Tuesday.

The defendants, who were simply identified as Alhaji Isiaka Fatai and Samuel Oyero, were tried in a suit marked HCP/IC/2023 between the State vs Awode Oladosu & 13 others.

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The case was reported to be a result of a crisis that recently broke out in the Agosasa community in the Ipokia Local Government Area of the state over an Obaship tussle which led to the destruction of property worth billions of naira and loss of life.

Meanwhile, when the hearing was ongoing, operatives of the DSS stormed the court premises and took away the suspects.

Confirming the incident to Daily Trust, Counsel to Alhaji Isiaka, Kehinde Bamiwola, in a statement, alleged that men of the DSS operatives used weapons on the two, stressing that “Alhaji Isiaka Fatai was beaten, slapped, man-handled, rough-handled and molested.”

Corroborating Bamiwola’s claim, the Principal Registrar of the High Court and Sectional Head of High Court, Ilaro, Omololu Olusanya, confirmed the incident, describing it as shocking and disrespectful to the rule of law.

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He stressed that even after the judge had ordered the operatives not to make any arrest within the court premises, they still proceeded to arrest the two persons.

“They still went ahead and did the act to the extent that they assaulted one of our staff members, Mrs Fadina, while doing that act. It’s a very sad issue that caused a lot of noise within the court premises.

“It was from the source that we heard they were DSS agents. If anybody sees them, one would think they were armed robbers.

Olusanya further said that their appearance was far from being identified as DSS agents, adding, “They did not wear anything that identified them as DSS, but they came to my lord this morning and said they had some people to arrest. That was when we knew they were DSS officers.

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“They approached the judge before the court session began. The honourable judge advised them that if they wanted to make an arrest, it must not be done within the court premises.

“They could stay outside and do whatever they wanted, but they refused that advice and carried out the arrest within the premises,” he said.

However, when contacted, the spokesman for the DSS, Peter Afunanya, did not answer calls or reply to text messages sent as of the time of filing this report.

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Man Arrested For Invading Plateau Bank With Bomb

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A yet-to-be-identified man has been apprehended for possessing a bomb on the premises of a bank in Dadin Kowa town in the Jos South area of Plateau State.

It was gathered that immediately it was discovered that a bomb was in the suspect’s possession, an alarm was raised, and he was quickly pinned down to avert a tragedy.

According to a post by security analyst Zagazola Makama on X on Tuesday, the vigilante security at the bank prevented the attack when they spotted the suspect.

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Upset by the development, an angry mob descended on the suspect and reportedly demanded that he should be killed.

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The suspect was later handed over to the police for proper investigation.

A picture attached to Makama’s post showed that the bomb was strapped around the suspect’s belly.

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It is, however, unclear if the suspect had been linked to any terrorist organisation in the country.

Details later…

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BREAKING: Niger Speaker Halts Wedding Plans For 100 Orphans

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The Speaker of the Niger State House of Assembly, Abdulamlik Sarkindaji, has stopped the planned hosting of the wedding of 100 orphan girls in his constituency, saying he would not grace the occasion.

Sarkindaji took the decision following the action of the Women Affairs Minister, Uju Ohannaya, who dragged the Speaker to court to halt the wedding.

The Speaker made this known on Tuesday during a media briefing in which he said the minister had overstepped her bounds.

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He said the minister should take over the sponsorship of the wedding ceremony.

READ ALSO: Banditry: Niger Speaker To Marry Off 100 Female Orphans

The Speaker disclosed that he had already made funds available to the girls’ parents through the traditional leaders and clerics of his constituency, noting that he would not withdraw the funds.

Abdulmalik also pointed out that his motive for wanting to sponsor the wedding was the state of poverty of the girls’ parents and not the constituency project, as reported in the media.

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Details later…

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