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Buhari Seeks $30bn Foreign Loan …Wants N180bn Virement In 2016 Budget …Explains Why 2017 Budget’ll Hit N6trn
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President Muhammadu Buhari has forwarded requests to the National Assembly to approve external borrowing plan of $29.960billion for execution of key infrastructural projects across the country between 2016 and 2018.
The president also requested for virement of N180.8 billion in the 2016 budget for provision of needed votes for some sectors.
The president made the requests in two separate letters to the Senate President, Dr Bukola Saraki and Speaker of the House of Representatives, Mr Yakubu Dogara which were read on the floor of both chambers, yesterday.
Buhari, in the external borrowing plan, explained that targeted projects cut across all sectors with special emphasis on infrastructure , agriculture, health, education, water supply, growth and employment generation.
Other sectors he said included poverty reduction through social safety net programmes and governance and financial management reforms, among others.
According to him, the cost of the projects and programmes under the borrowing (rolling) plan is $29.960billion.
This is made up of proposed projects and programmes loan of $11.274billion, Special National Infrastructure projects $10.686billion, Euro bonds of $4.5 billion and Federal Government budget support of $3.5billion.
He explained further that the loan was very necessary in view of the serious infrastructure deficit in the country.
He said the country had huge infrastructure deficit and enormous financial resources required to fill the gap in the face of dwindling resources.
“This is in addition to the inability of our annual budgetary provisions to bridge the deficit. It has become necessary to resort to prudent external borrowing to bridge the financing gap.
“This will largely be applied to key infrastructure projects namely power, railway and roads among others”, he added.
Buhari in the virement request, said the N180 billion would be moved from monies already appropriated for special Intervention programmes both recurrent and capital for funding of critical recurrent and capital items.
He said the request arose due to shortfalls in provisions for personnel costs; inadequate provision ab initio for amnesty programme; continuing requirements to sustain the war against insurgency; and depreciation of the naira.
The letter reads in part:” In the course of implementing the 2016 Appropriation Act, several MDAs have presented issues pertaining to salary shortfalls, the settlement of part of which has led to the depletion of the Public Service Wage Adjustment. “This Vote, which had a provision of N33, 597,400,000, now has a balance of N2, 758,296,000.
“The provision for NYSC in the 2016 budget is inadequate to cater for the number of corp members to be mobilised this year.
“In fact, an additional N8.5billion is required to cover the backlog of 129, 469 corps members who are due for call-up but would otherwise be left out till next year due to funding constraints.
“Similarly, the provision for meal subsidy for the Unity Colleges is inadequate for the number of students in the schools.
“Due to the devaluation of the naira, the budgetary provisions for the foreign missions are no longer sufficient to cover all their costs.”
Meanwhile, the Minister of Finance, Mrs Kemi Adeosun, yesterday, told the Senate that the Federal Government would sustain its over N6trillion national budget in the 2017 appropriation bill, expected to be submitted by President Muhammadu Buhari, after the consideration and subsequent approval of the pending 2017—2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) by the National Assembly.
Adeosun told members of the Senate Committee on Finance, led by its Chairman, John Owan Enoh (PDP, Cross River Central), who were on oversight visit to her ministry, that government would maintain its over N6trillion annual budget because it spends over N3 trillion out of the budget sum for salaries, pension and debt services, leaving a paltry amount for capital projects.
She insisted that the country would be gambling with the figure for now as it can’t go below it anymore in the face of high expectations from its citizens.
Enoh had told the minister that the committee’s visit was “actually driven by the collective decision of the Senate a few weeks ago that all its standing committees embarked on oversight visits to all ministries, departments and agencies of government.
“So, for us as a committee, in addition to having to respond to that requirement, it also became imperative that we embark on this maiden visit.
“Our hope is that on this visit, the minister, quite apart from giving us some highlights of the implementation of the Ministry of Finance budget in the year 2016, would also throw some highlights on few of some of the things that she feels the committee should know, especially the performance of our economy, no matter how briefly, and some things that we could take advantage of because we oversight her ministry, so that we don’t just hear as secondhand but hear as firsthand.
“This is October, the Medium Term Expenditure Framework is already sent to the National Assembly for approval so that the 2017 budget can come. We have a few revenue challenges, most of all is the performance of the independent revenue of government. So, we think that the minister would take advantage of this meeting and be able to bring us to speed with a few of these things,” he added.
The committee berated the minister for what it described as her poor handling of agencies under her watch, resulting in monumental leakages and loopholes.
“There are a lot of drain pipes and leakages in the customs, I don’t think that the ministry under your watch has given sufficient attention to the customs in particular,” Senator Hope Uzodinma, a member of the committee and chairman, Senate Committee on Customs told her.
Responding, Adeosun disclosed that government’s efforts at realising money from revenue generating agencies to meet the expectations of Nigerians were being hampered by high-level corruption still existing in the agencies, especially the Nigerian Customs Service, which she described its men as “cohesive crooks hard to break.”
To this end, she solicited an urgent intervention of the National Assembly in curbing the loopholes and excessive leakage not only in the revenue sourcing agencies but also all other Federal Government’s agencies, saying they were stinking of corruption.
The minister particular disclosed that about N2 trillion from the budget was going out for salaries of workers and pensions alone, and the sum of N1.4 trillion was also going out for debt servicing, saying the situation considerably slashes down the budget sum, a development, she noted, made it impossible to downsize the budget.
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Reps Propose Creation of 31 New States
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The House of Representatives Committee on Constitution Review has proposed the creation of 31 new states in the country.
If the proposal scales through, the Nigerian state will be made up of 67 sub-national governments.
The proposal for new states was contained in a letter read during yesterday’s plenary session by the Deputy Speaker, Benjamin Kalu, who presided over the session in the absence of the Speaker, Mr Tajudeen Abbas.
The committee chaired by Kalu proposed six new states for North Central, four in the North East, five in the North West, five in the South East, four in the South-South and seven in the South West.
The letter read in part, “The committee proposes the creation of 31 new states. As amended, this section outlines specific requirements that must be fulfilled to initiate the process of state creation, which include the following:
New state and boundaries
“An act of the National Assembly for the purpose of creating a new state shall only be passed if it requires support by at least the third majority of members.
“The House of Representatives, the House of Assembly in respect of the area, and the Local Government Council in respect of the area are received by the National Assembly.
“Local government advocates for the creation of additional local government areas are only reminded that Section 8 of the Constitution of the Federal Republic of Nigeria, as amended, applies to this process.
“Specifically, in accordance with Section 8 (3) of the Constitution, the outcome of the votes of the State Houses of Assembly in the referendum must be forwarded to the National Assembly for fulfillment of state demands.
“Proposals shall be resubmitted in strict adherence to the stipulations. Submit three hard copies of the full proposal of the memoranda to the Secretariat of the Committee at Room H331, House of Representatives, White House, National Assembly Complex, and Abuja.
“Sub-copies must also be sent electronically to the Committee’s email address at info.hccr.gov.nj. For further information or contact, please contact the Committee Clerk at 08069-232381.
“The committee remains committed to supporting the implementing efforts that align with the Constitutional provisions and would only consider proposals that comply with the stipulated guidelines. This is coming from the Clerk of the Committee on Constitutional Review.”
The proposed new states are Okun, Okura and Confluence states from Kogi; Benue Ala and Apa states from Benue; FCT State; Amana State from Adamawa; Katagum from Bauchi State; Savannah State from Borno, and Muri State from Taraba.
Others are New Kaduna and Gujarat from Kaduna State; Tiga and Ari from Kano; Kainji from Kebbi State; Etiti and Orashi as the 6th state in the South East; Adada from Enugu, Orlu and Aba from the South East.
Also included are Ogoja from Cross River State; Warri from Delta; Ori and Obolo from Rivers; Torumbe from Ondo; Ibadan from Oyo; Lagoon from Lagos; Ijebu from Ogun State, as well as Oke Ogun/Ijesha from Oyo/Ogun/Osun States.
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TUC Opposes FG’s Proposed Toll Gate On Federal Roads, Rejects Electricity Tariff Hike
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The Trade Union Congress of Nigeria, (TUC), yesterday, opposed the plans by the Federal Government to toll selected federal roads in the country, as a means of revenue generation.
The TUC also kicked against any attempt to increase telecom tariff, saying it will compound the present economic hardship Nigerians are going through.
President of TUC, Comrade Festus Osifo, while presiding over the 1st Quarter 2025 National Administrative Council (NAC) of the Union in Abuja, yesterday, condemned the proposed reintroduction of toll gates on some federal highways without first of all ensuring that the roads are in good condition.
Osifo, who blamed the hardship in the country as a result of the government policies like the flotation of the naira, wondered why the Federal Government should initiate policies bothering on the citizens without due consultations with relevant stakeholders.
He said its is annoying that most of the roads which are unpaved, dilapidated, and riddled with potholes should be open for collecting tolls.
A communique issued at the end of the meeting partly read: “NAC deliberated on the proposed introduction of toll gates on selected federal roads and strongly condemned it in its entirely. While we acknowledge that tolling is a globally recognized method of generating revenue for road maintenance, it is unacceptable to impose tolls on roads that are unpaved, dilapidated, and riddled with potholes.
“The NAC views this as an insult to Nigerians, who are being asked to pay tolls on roads that are in total disrepair. Our highways are death traps unsafe, abandoned, and filled with potholes. Rather than fulfilling its responsibility to fix and maintain these roads, the government is resorting to shameless extortion.
“The Congress, therefore, demands that all roads earmarked for tolling must first be fixed, properly tarred, and repaired to international standards before any discussion on tolling can be entertained”.
Although the Federal Government recently debunked plans to increase electricity tariff by 65 percent, TUC said it was alarming that the government even considered the hike in the first instance.
Osifo lamented that the previous increment already inflicted severe hardship on citizens.
He said, “This proposed increase is not only ill-timed but also a deliberate act of economic oppression against Nigerians, who are already struggling under unbearable economic conditions.
“The improved service quality promised during the last tariff hike, particularly for consumers under the so-called “Band A” category, has not been realized. Most consumers, regardless of their tariff band, continue to live in perpetual darkness”.
TUC observed that the root cause of escalating prices and galloping inflation was the devaluation of the Naira.
Going down memory lane, Osifo said in February 2024, the TUC addressed a world press conference, where it clearly stated that the excessive devaluation of the naira was the primary cause of rising inflation and the continuous increase in the prices of goods and services.
He said Congress also warned that this trend would worsen inflation in 2024, impacting virtually every sector of the economy and severely affecting the social and economic well-being of Nigerian workers and the masses if the solutions it canvassed were not adopted.
The TUC President said 12 months later, the Congress position remained unchanged, alleging that the symptoms of the root cause have manifested clearly.
According to him: “These include the skyrocketing prices of essential goods, the escalating costs of social services, the proposed hike in telecom tariffs, the increase in electricity tariffs (with plans for further increments), the rising prices of petroleum products amongst others.
“The TUC remains focused on addressing the root cause of these economic challenges rather than merely reacting to the manifested symptoms. To this end, the TUC demands a better foreign exchange (FX) management regime from the Central Bank of Nigeria (CBN) as the naira is currently undervalued, as confirmed by both local and international experts.”
He warned that if the policies were not reviewed to favour the citizens, the TUC may be compelled to mobilise for mass protest.
“The NAC, on behalf of the Congress, strongly advises the government to refrain from introducing policies that would further exacerbate the current economic hardship faced by hardworking Nigerians.
“If the administration insists on implementing these policies, the TUC will have no choice but to mobilize the working class, civil society, and the oppressed masses for a nationwide action. This level of exploitation is unacceptable. A stitch in time saves nine,” he warned.
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Africa Must Stop Depending On Foreign Blueprints -Tinubu
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President Bola Tinubu has charged African leaders to stop clinging to their old habit of depending on foreign plans, saying the continent is in dire need of leaders who wield policy as a surgical blade instead of a slogan.
Tinubu lamented what he described as “the tragedy of our time” whereby African leaders do not only confine themselves to foreign blueprints but refused to emancipate themselves from client-state mentalities and governance by hashtag activism.
The President made these remarks in Abuja, yesterday, during the Dr. Kayode Fayemi commemorative symposium and launch of the Amandla Institute for Policy and Leadership Advancement, with the theme “Renewing the Pan-African Ideal for the Changing Times: The Policy and Leadership Challenges and Opportunities.”
The symposium was organised to commemorate the 60th birthday of the former Governor of Ekiti State, Dr Kayode Fayemi.
Represented at the event by the Vice-President, Senator Kashim Shettima, the President said, “Whatever our differences across the continent, one fact that can’t be eroded by our infighting is that we are in the age of machines, and we can’t fight our development dilemma with spears and arrows while the rest of the world is fighting the same battle with missiles and tanks. The world is not waiting for Africa to catch up.
“While we parse political rivalries, others parse datasets. While we litigate history, others engineer futures. The train of progress accelerates, yet too many of our leaders cling to old carriages. These are our client-state mentalities, our dependency on foreign blueprints, and our governance by hashtag activism. This is the tragedy of our time.
“The founding of Amandla Institute emerges as an antidote to this paralysis. We are here not only to generate more ideas but to create executors. We need leaders who wield policy as a scalpel, not a slogan. We need visionaries who see AI as a collaborator, not a competitor. We need a generation of Africans who recognise that Pan-Africanism, renewed for this age, must be rooted in actionable sovereignty.”
Tinubu pointed out that it would be wishful thinking to hope that the renaissance of Africa will happen as a gift, maintaining that it must be built.
He regretted that for too long, leaders in Africa have outsourced their thinking, relying on institutions and ideologies that treat countries on the continent “as consumers, not creators,” just as he insisted that the youth must be empowered to innovate in tech hubs across the continent.
“But the post-idea world dissolves excuses. With the democratisation of knowledge, we must empower our youth to innovate in tech hubs across the continent, from Cairo, down through Nairobi, to Lagos, building unicorns without the permission of any gatekeepers. What they lack is not ideas but ecosystems—systems where policy, funding, and political will converge to scale their genius,” he noted.
The Nigerian leader further urged African leaders to “evolve from custodians of power to architects of platforms,” adding that their “imagination of Africa must be one where every government ministry houses.
“AI strategists, where continental trade policies are drafted by homegrown think tanks like Amandla Institute, not foreign consultants, and where “Made in Africa” signifies not raw materials but algorithms, green tech, and cultural capital.”
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