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Reactions Trail N7.2trn 2017 Budget
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Mixed reactions have continued to trail the 2017 National budget of N7.298trillion presented to a joint sitting of the National Assembly, Wednesday by President Muhammadu Buhari.
While some see hope of recovery in the implementation of the 2017 budget as proposed, many Nigerians say the deficit budget and the quantum of borrowing needed to fund it has no promise of relief from economic hardship.
The 2017 appropriation bill of N7.298 trillion represents 20.4 per cent increase over the 2016 estimate.
Buhari, in his presentation, said the budget was predicated on a benchmark of $42.5 per barrel of oil, as against $38 in 2016, a projection of the production of 2.2million barrels per day and the exchange rate of N305 per dollar as against N197 per dollar, bench mark for 2016 budget.
Further breakdown of the Budget shows an allocation of 30.7 per cent of the budget to capital expenditure aimed at pulling the economy out of recession.
Key capital spending provisions would be on power, works and housing, which got the highest budgetary allocation of N529billion, followed by transport; N262billion, social intervention N150 billion.
Defence got N140 billion while the judiciary got an increased allocation of 100 billion naira.
Education got N50billion while Universal Basic Education got a direct allocation of N92billion, while the sum of N51 billion was also allocated to health.
According to the President, “We will continue to fortify our defence spending till all our enemies within and without are subdued, the people who voted for us are waiting for us to change the course of this nation, we are increasing funding to the judiciary in order to allow them function even better.”
Further breakdown of the budget proposals as submitted by the President shows that N419.02 billion was earmarked for statutory transfers, N1.66trillion for Debt servicing, N177.46billion as sinking fund.
Others are N2.98trillion for non debt re-current expenditure.
The president added that aggregate revenue available to fund the federal budget was N4.94 trillion, which is 28 per cent higher than 2016 full year projections.
Oil, according to him, is projected to contribute N1.985 trillion of the N4.94trillion, while non oil revenues, largely comprising Companies Income Tax, Value Added Tax, Customs and Excise duties, and Federation Account levies are estimated to contribute N1.373trillion.
“We have set a more realistic projection of N807.57 billion for independent revenues, while we have projected receipts of N565.1 billion from various recoveries.
Other revenue sources, including mining, amount to N210.9 billion”, he said.
The President added that the 2017 budget has a deficit plan of N2.36 trillion, which is about 2.18 per cent of GDP and to be financed mainly by borrowing, which was projected to be about N2.32 trillion.
“Our intention is to source N1.067trillion or about 46 per cent of this borrowing from external sources while, N1.254trillion will be borrowed from the domestic market”, he explained.
But in the votes for recurrent expenditure, the Ministry of Interior has the largest allocation of N482.7billion, followed by the Ministry of Education which has N390billion, Defence N325billion, Health N252billion, among others.
He also said that, the 2017 budget, will focus on the development of infrastructure, especially rail, road and power.
Buhari said he expects the 2017 budget to better the lives of Nigerians in a greater measure than that of 2016.
In his speech, the Senate President, Bukola Saraki, said the 2017 budget must ease the economic burden which is already overwhelming Nigerians.
He called on the executive during the formal presentation of the 2017 Appropriation Bill to implement the budget such that the lots of the less privileged Nigerians are made better.
He also said there is no hiding the fact that Nigerians are presently experiencing economic hardship.
According to him, the 8th National Assembly will work with the executive to ensure that it surmounts the present economic recession by passing the 11 economic reform laws alongside the 2017 budget.
“Our people must see that the singular pre-occupation of government is the search for solution to the current economic hardship; and the commitment to ease their burden,” Saraki said.
“They don’t want to know what political parties we belong, what language we speak or how we worship God. They have trusted their fate into our hands, and they need us now more than ever, to justify the trust that they have reposed on us”, he stated.
He added that: “The people of Nigeria will pardon us if we do some things wrong. But they will not forgive us if we do nothing. And that is why, Mr. President, the two chambers have taken a position that whatever may be our differences, or opinions on issues of the economy we will all work with one common purpose for this reason.”
Saraki noted that when the National Bureau of Statistics (NBS) confirmed that the nation’s economy has slumped into a recession, “the National Assembly rose with one voice.
“Through a joint resolution, we recommended that you make a ‘state of the nation’ address on the plan of government to get us out of recession and have 20 important Executive actions that in our view needed to be taken to get the economy back on track,” Saraki said.
“The National Assembly on its part listed and prioritized 11 economic reform bills for passage. We intend to get these bills ready alongside the 2017 Appropriation bill. We believe that the core elements of these bills will aid the Executive in mobilizing the required private capital into the general economy, but especially the infrastructure market”, he stated.
The Senate President said the harsh economic realities confronting the nation calls for greater collaboration by all arms of government to find urgent and sustainable solutions.
“It is in times like this, when we are challenged from all sides that we need to develop new relationships and cultivate more friends. No one can clap with one hand and expect to be heard. This is the time when compromise, engagement is the tool necessary for successful collaboration and cooperation.
“This is why I encouraged the Executive to continue with its engagement plans across all sections and stakeholders in the country particularly with our brothers in the Niger Delta and all parts of the country where instability is impacting on our collective economic and security aspirations,” he stated.
Similarly, the Speaker of the House of Representative, Hon Yakubu Dogara, described as frustrating, the repeated experience of poor implementation of the nation’s annual budget.
He appealed to Buhari to allow the capital component of the 2016 budget up to May, 2017, saying “it is certainly frustrating that we go through the annual Budget cycle/process of Budget presentation by Mr President, processing of same by the National Assembly, passage and signing into law every year, without unlocking the full potentials of such budgets for our citizens.
“This is because implementation and execution of the agreed Budget is always a major challenge year in year out. Sometimes, implementation rate is as low as 30 per cent, most times it is never higher than 50 per cent at the best of times. This has led to unacceptably high rate of abandonment of projects and distortions in Nigeria’s economic planning. Of course, this is an inherited problem for Mr President as he has only effectively passed through one budget cycle”.
“An Appropriation Act must be allowed to run for an uninterrupted period of twelve months, for the Executive to have enough time to execute it. This means that both Mr. President and the National Assembly must find a way to continue the execution of the 2016 Budget especially the capital component till May 6, 2017, which is twelve months from the date Mr President signed the 2016 Appropriation Bill.
“The problem is that most often the recurrent component of the Budget is implemented to an appreciable level, but the capital component execution is very low. It is crystal clear that the capital component of the 2016 Budget cannot realistically be implemented for only six months period, considering the time required for procurement processes and the raising of the revenue, including loans by government”.
Nneka Amaechi-Nnadi, Abuja
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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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