Business

Senate Insists On Dec 14 For Passage Of 2022 Budget

Published

3 years ago

November 24, 2021

Senate President, Ahmad Lawan, has given the Senate Committee on Appropriations till Wednesday (today) to conclude budget defence by subcommittees of the upper chamber.
Giving the directive at the plenary yesterday, Lawan explained that the ultimatum became necessary in keeping with the December 14 timetable for the passage of the 2022 budget by the National Assembly.
He said that working to the contrary may mar the timely passage of the budget as planned.
The Senate President, nevertheless, assured Nigerians that the National Assembly would work assiduously in ensuring that it resolves any likely hitch that may interfere with the quick passage of the budget next month.
He commended ministries, departments and agencies of government for appearing before the committees of the chamber to defend their respective budget estimates.
Lawan said, “According to our timetable for the budget defense and subsequent processing by our committees or subcommittees of the Appropriations Committee, tomorrow (today) will be the last day for the budget defense.
“Tomorrow will be the last day for the budget defense by subcommittees for appropriation before the committee on appropriations.
“It is gladdening that all our committees have finished their budget defence with ministries, departments and agencies as programmed by this Senate. But we have a little bit of hitch, we are behind schedule with some of our committees.
“So, I’m sure that those committees that should have appeared before the committee on appropriation, but could not might have had some challenges with getting some details from the MDAs.
“Tomorrow, no matter what, we have to conclude with the budget defense by the subcommittees before the committee on appropriations, and it is very important”.
Explaining why work on the budget must be concluded in good time, Lawan said, “In fact, it is very, very essential that we keep to our timetable, otherwise, we may run into a very serious problem with our time for the budget to be considered and passed by the 14th of December.
“I’m sure that our committees will be able to appear before the committee on appropriations by tomorrow.
“I will also add that the Committee on Appropriations should make itself available to our subcommittees for appropriation”.

Business

Keyamo Laments Over Extortion At Airports … Says Matter Beyond Ministry’s Control

Published

1 day ago

June 26, 2024

The Tide

The Minister of Aviation and Aerospace Development, Festus Keyamo, has expressed concern over the rate of extortion of passengers by officials of government agencies at the nation’s airports.

Expressing displeasure over the rate of extortion of passengers by aviation officials, Keyamo said the matter is beyond the control of Ministry of Aviation.

The Minister, who stated this in a press release made available to aviation correspondents, however noted that the aviation ministry was working with other ministers responsible for the affected agencies to find a lasting solution to the problem.

This is in response to numerous complaints by travelers over alleged extortion by government officials at the airport.

“I have received several complaints about the menace of begging and extortion at our International airports by a few unscrupulous persons who give all of us a bad image.

“My phones are beeping every minute with messages about this from well-meaning Nigerians. Just to set the records straight, most of the agencies involved in this menace are not under the control of the aviation ministry, though they are stationed at our airports.

“However, I have been working closely with other ministers, arms of government and agencies who are responsible for these agencies and a solution is in sight soon”, Keyamo stated.

He also said the ministry was collaborating with the National Security Adviser on the issue, adding that he would soon announce practical steps to stem this ugly trend.

Recall that on June 14, the Federal Airports Authority of Nigeria (FAAN) issued a warning to airport users against offering bribes and encouraging extortion.

The agency stated that any staff or government agency operating at the airports found guilty of accepting bribes would face punishment.

The agency also announced the launch of a task force to eliminate touting, extortion, and other illicit activities at airports nationwide.

FAAN stated that the task force had been assigned the responsibility of enforcing discipline among staff and fostering a culture of professionalism at all levels at the airports.

Corlins Walter

Business

IOCs Frustrating Nigerian Refineries, Dangote Declares

Published

1 day ago

June 26, 2024

The Tide

Worried by the crude price hike, the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has accused International Oil Companies (IOCs) in Nigeria of plans to frustrate the survival of the new Dangote Oil Refinery and Petrochemicals, and other modular refineries.

He said the IOCs were deliberately and willfully frustrating the refinery’s efforts to buy local crude by hiking the cost above the market price, thereby forcing the refinery to import crude from countries as far as the United States, with its attendant high costs.

Speaking to journalists at a training programme organised by the Dangote Group, Edwin also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of granting licences indiscriminately to marketers to import dirty refined products into the country.

According to Edwin, the Federal Government issued 25 licences for the construction of refineries in Nigeria, but only the Dangote Group delivered on its promise.

While calling for the government’s support, the Vice President noted that more than 3.5 billion litres of diesel and aviation fuel had been exported to Europe by the refinery in the past few months.

The exported fuel, it was said, represented about 90 per cent of its production.

“The Federal Government issued 25 licences to build refineries and we are the only one that delivered on our promise. In effect, we deserve every support from the government.

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support to create jobs and prosperity for the nation”, Edwin stated.

He added that though the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was trying its best to allocate crude oil for the 650,000-capacity refinery, “the IOCs are deliberately and willfully frustrating our efforts to buy the local crude”.

The Dangote official said the IOCs sometimes made the refinery pay $6 over and above the market price, saying this has forced the company to reduce its output and import crude from countries like the United States at a higher cost.

He said, “Recall that the NUPRC recently met with crude oil producers and refineries’ owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations as enunciated under section 109(2) of the Petroleum Industry Act.

“It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for a ridiculous/humongous premium, or they simply state that crude is not available.

“At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production.

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products.

“They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their Gross Domestic Product, and dumping the expensive refined products into Nigeria, thus making us to be dependent on imported products.

“It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense.

“This is exploitation, pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products”, Edwin explained.

It was said that even though Dangote is producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market”.

Edwin continued that “Since the US, European Union and the United Kingdom imposed a price cap scheme from February 5, 2023, on Russian petroleum products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and they are being purchased and dumped into the Nigerian market.

“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa recently.

“Sadly, the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally”.

He recalled that in May, Belgium and the Netherlands adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union.

These measures, according to Edwin, synchronised fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content.

Business

Debt Servicing: $15bn Spent In 5 Yrs – CBN

Published

1 day ago

June 26, 2024

The Tide

The Central Bank of Nigeria (CBN), has said the Federal Government has spent a total of $15.55billion on debt servicing between 2019 and 2024.

This is according to the latest data from the nation’s Apex bank, which revealed that in 2019, Nigeria paid $588.33million in debt service between January and May, while the payment for 2020 was $5.40bn.

According to the data, debt service payments continued to rise in subsequent years, with $2.02bn paid in 2021, $2.34bn in 2022, and $3.43bn in 2023.

The data further disclosed that between January and May 2024, the country has paid $2.18bn in debt service.

This is 270.9 per cent increase compared to the first five months of 2019 which was $588.33m.

The $2.18bn in May 2024 is about half of the $4.8bn projected by Fitch Ratings for the year.

This increase is despite the government’s assertions that it is shifting its focus towards domestic borrowing.

Fitch Ratings also predicts that the country’s external debt servicing will escalate by $400m to $5.2bn next year, raising concerns about Nigeria’s debt sustainability.

According to the CBN International Payments Data, the FG spent the highest on debt financing within the last five years in 2020 which amounted to $5.40bn.

Nigeria’s external debt service payments saw a significant increase of $1.1bn, reaching $3.5bn in 2023, report has also revealed.

Recently, the government received $2.25bn from the World Bank to support President Bola Tinubu’s economic reforms.

The two-fold packages include $1.5bn for the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program and $750m for the Nigeria Accelerating Resource Mobilization Reforms Program-for-Results.

“We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth. These reforms will create quality jobs and economic opportunities for all Nigerians”, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said.

Corlins Walter