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N13.08trn Budget: 2nd Recession To Hit Economy Before Dec Ends -Buhari …N’Delta Amnesty Programme Gets N65bn
President Muhammadu Buhari, yesterday, predicted further hardship for Nigeria as he said the nation may face another recession before the end of the year, if serious and effective measures are not taken to ensure the nation’s financial security.
Buhari raised the alarm in his budget speech during the presentation of N13.08trillion budget for the 2021 fiscal year to a joint session of the National Assembly,.
He, however, vowed to pursue his administration’s goal of lifting 100million Nigerians out of poverty, even as he disclosed that the government has released N2.1trillion for capital projects in the 2020 budget.
President said about N3.85trillion has been earmarked for capital projects in the 2021 fiscal year, while the non-debt recurrent expenditure for next year would gulp N5.65trillion.
He said this was N1.15trillion higher than what was budget for capital in 2020.
The 2021 budget also has N100billion earmarked for Constituency projects of the lawmakers of both Chambers of the National Assembly, just as N128billion has been slated for statutory transfer to the National Assembly for payment of salaries and allowances next year.
This would, therefore, form part of the proposed N484.49billion transfers to other budget stakeholders.
A study of the 2021 budget breakdown as submitted by the President, indicated that the Ministery of Defense received the lion share of N840.56billion, followed by Ministry of Education, which received N545.10billion, while the Ministry of Health received N380.21billion in the 2021 Appropriation Bill.
According to the President, in line with the proposed borrowing plans to sustain the economy, the 2021 budget would operate at a deficit of N5.2trillion, just as N4.28trilion would be borrowed to finance the budget deficit.
The parameters and fiscal assumptions underpinning the 2021 appropriation, included: Benchmark oil price of $40 per barrel; daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day).
Exchange rate of N379 per $1; Gross Domestic Product growth projected at 3.0 per cent and inflation closing at 11.95 per cent.
The President said to maintain the peace in the Niger Delta region for economic and social activities to thrive, the provision of N65billion for the Presidential Amnesty Programme has been retained in the 2021 Budget.
“In addition, the sum of N63.51billion has been appropriated for the Niger Delta Development Commission (NDDC) and N24.27billion has been provided for the capital projects of the Ministry of Niger Delta Affairs. These allocations should further support the development of the region by facilitating the completion of important ongoing projects, such as the East-West Road”, he said
According to him, “Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886trillion. This includes Grants and Aid of N354.85billion as well as the revenues of 60 Government-Owned Enterprises.
“Oil revenue is projected at N2.01trillion. Non-oil revenue is estimated at N1.49trillion. As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation. Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.
“An aggregate expenditure of N13.08trillion is proposed for the Federal Government in 2021. This includes N1.35trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85billion.
“For 2021, the proposed N13.08trillion expenditure comprises: Non-debt Recurrent Costs of N5.65trillion; Personnel Costs of N3.76trillion; Pensions, Gratuities and Retirees’ Benefits of N501.19billion; Overheads of N625.50billion; Debt Service of N3.124trillion; Statutory Transfers of N484.49billion; and Sinking Fund of N220billion (to retire certain maturing bonds).
“The 2021 Budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20trillion. This represents 3.64 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act, 2007. It is, however, to be noted that we still face the existential challenge of Coronavirus pandemic and its aftermath; I believe that this provides a justification to exceed the threshold as provided for by this law.
“The deficit will be financed mainly by new borrowings totalling N4.28trillion, N205.15billion from Privatization Proceeds and N709.69billion in draw-downs on multilateral and bilateral loans secured for specific projects and programmes.”
The sum of N484.49billion was provided in the budget proposal for Statutory Transfers representing an increase of N56.46billion (or 13 per cent) over the revised 2020 provision.
It includes: Niger Delta Development Commission (N63.51billion); North East Development Commission (N29.70billion); National Judicial Council (N110.00billion); Universal Basic Education Commission (N70.05billion); Independent National Electoral Commission (N40.00billion); National Assembly (N128.00billion); Public Complaints Commission (N5.20billion); Human Rights Commission (N3.00billion); and Basic Health Care Provision Fund (N35.03billion).
In the recurrent expenditures, the budget has N227.02billion for the Ministry of Interior; N441.39billion for the Ministry of Police Affairs; N545.10billion for Ministry of Education; N840.56billion for Ministry of Defence; and N380.21billion for Ministry of Health.
On debt servicing, Buhari said the Federal Government was committed to meeting its debt service obligations.
The budget provided N3.12trillion for this in 2021, representing an increase of N445.57billion from N2.68trillion in 2020.
He said a total of N2.183trillion has been set aside to service domestic debts, while N940.89billion has been provided for foreign debt service, just as N220billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.
Speaking on overhead costs, the President said total overhead costs of MDAs and government owned enterprises are projected to rise to N625.50billion in 2021, mainly due to the inclusion of the overheads of an additional 50 government owned enterprises.
He added that overhead provisions have also been made for newly created agencies, urging MDAs to adhere to extant expenditure controls as a measure to keep a tab on running costs.
While indicating that an aggregate sum of N3.85trillion is expected to be available for capital projects in 2021, he gave the details as: N1.80trillion for MDAs’ capital expenditure; N745billion for Capital Supplementation; N355billion for Grants and Aid-funded projects; N20billion for the Family Homes Fund; N25billion for the Nigeria Youth Investment fund; N336billion for 60 Government Owned Enterprises; N247billion for capital component of Statutory Transfers; and N710billion for projects funded by Multilateral and Bilateral loans.
He said Capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones, adding “We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding.
Highlights of the 2021 budget include: Power: N198billion (inclusive of N150billion for the Power Sector Recovery Plan); Works and Housing: N404billion; Transportation: N256billion; Defence: N121billion; Agriculture and Rural Development: N110billion; Water Resources: N153billion; Industry, Trade and Investment: N51billion; Education: N127billion; Universal Basic Education Commission: N70billion; Health: N132billion; Zonal Intervention Projects: N100billion; and Niger Delta Development Commission: N64billion.
According to the President, the sum of N420billion was also budgeted to sustain the Social Investment Programme, N20billion has also been set aside for the Family Homes Fund, Social Housing Programme. N75billion Survival Fund Programme to support and protect businesses from potential vulnerabilities. N100billion to households and small businesses; N100billion to the healthcare and pharmaceutical industry; and N1trillion to large agricultural and manufacturing businesses.
By: Nneka Amaechi-Nnadi, Abuja
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Arson: Those Behind It’ll Account For Atrocities -Fubara …Swears In Bipi, Three Others As Commissioners
Rivers State Governor, Sir Siminalayi Fubara, has said that his administration will not fold its hands and watch sponsored political thugs run berserk, committing arson in the State.
The Governor, therefore, assured that, working with the Nigerian Police Force and the Directorate of State Services (DSS), measures will be taken to unravel those behind the recent burning of council Secretariats at Ikwerre, Emohua and Eleme Local Government areas, with a view to making them account for their atrocities.
Governor Fubara gave the assurance while swearing in four new commissioners into the Rivers State Executive Council at Government House in Port Harcourt yestersday.
Those sworn in are Hon. Israel Lebura Ngbuelu, PhD; Hon. Evans Bapakaye Bipi; Barrister Otamiri John Ngubo; and Hon. Barrister Benibo Anabraba.
Governor Fubara recalled mentioning when he sworn-in newly elected Local Government Councils’ Chairmen on 6th October, 2024, that there was intelligence on planned mayhem by misguided persons, who had threatened to prevent the elected officers from resuming duties.
True to it, Governor Fubara said, the sponsored political thugs hatched their plans, and burnt valued buildings at some council secretariats.
He said, “I said it before it happened. I knew because they were unhappy, they would go extra miles to create disaffection in the minds and hearts of the good people of Rivers State.
“We want to also let the people know that what has happened (arson) after the election, we are not going to allow it to go uninvestigated.
“A similar event had happened in this manner before, and after some weeks, some of our supporters were declared wanted in order to turn the story around.
“But this time around, I strongly believe, with the support and cooperation of the Nigerian Police and the Directorate of State Services (DSS), we will unravel those behind the assault and make sure that they account for their atrocities.”
Governor Fubara expressed appreciation for the show of patience and calmness by majority of Rivers people despite the fact that they are angry with the reckless acts of the misguided miscreants.
The Governor said he has continued to show leadership, provided the climate that has engendered productive endeavours, and will not mislead those he is leading.
“As your leader; the one steering the ship, I assure you I will not mislead anyone of you. I still stand on the path of peace. We have cases of arson in some local government areas.
“But, I appreciate your calmness. I have always maintained that we are going to be the greatest losers, if we meet them force-for-force. We need to go with peace.
“So, I will encourage everyone of you not to follow them with violence. We are carrying a basket of precious eggs in our hands. So, we need to follow them with carefulness and wisdom.”
Governor Fubara reiterated what he said the previous day on what should matter most for Rivers State, which is a firm support to ensure that the progress of Nigeria is sustained.
He said, if oil theft is not checked, the country’s economy will be badly impacted, and there will not be funds to address critical issues.
“We are in a situation where the fund that is being generated from oil production is not sufficient to tackle the challenges of Nigeria, and every hand has to be on deck to make sure that there is increase in production.
“Our focus here, not minding the distractions, will be how to provide support. You have to work with us to make sure that we curb this issue of oil theft and pipeline vandalisation.
“This is the only way that the allowances (revenue) will increase and more will also come to our State, and more progress will also be achieved in this State.”
Governor Fubara explained that his administration is doing a lot for the good people of the State, that are not being seen because of the political drama that takes their attention away.
He, however, said that his administration is working out modalities, and will soon choose a day, which could probably be before the end of October, 2024, to showcase a few projects and services that have positively impacted lives in the State.
Governor Fubara congratulated the newly sworn-in commissioners for making it into the Rivers State Executive Council.
He explained that more persons whose loyalty are for Rivers people and the administration needed to be admitted into the Rivers State Executive Council to help drive the policy of government because they will not resign their appointment.
Governor Fubara said: “We want to be sure, at this point, who we are adding into the Council, so that we will not wake up one morning and see resignation letter. So, we are taking our time.
“And usually, after a normal political period, there used to be what we call balancing. So, I can also say that the new Commissioners that are coming in are coming from their zones to also balance the political equation.”
Governor Fubara charged them to be dedicated, forthright, diligent and productive while rendering quality services to the State.
The Governor said he believed in their capacity to deliver because of their exposure to the workings of government, and expressed the hope that they will contribute positively to the success of the administration.
He said, “So, let me thank everyone of you. Let me also use this opportunity to thank the good people of Rivers State for their support, and to assure them that we will continue to defend, protect the interest of Rivers people.
“I want to thank everyone of you for your support, more especially before, during and after the elections. I appreciate your doggedness, your belief in our course to salvage this State, to protect the integrity of this State,” he added.
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Walson-Jack Seeks Media Support To Drive Reforms
Head of Civil Service of the Federation (HoCSF), Mrs Didi Walson-Jack, has sought media support to fast-track the implementation of the ongoing reforms in the civil service sector.
Walson-Jack made the request during a cocktail organised by her office for media executives from different organisations in Abuja.
The event, according to her, aimed at interacting with the media men one-on-one, appreciate them and implore them to continue to strengthen the bond with the office.
“I want to start by thanking each and everyone of you for honouring this invitation. I want to say that we purposely designed this grail cocktail so that we can have one-on-one interactions.
“Let me also go ahead to thank you for all the supports you have given to the Office of the Head of the Civil Service of the Federation (HCSF) in the years past I know that the Fourth Estate of the realm has always supported this office.
“I will also go ahead to thank you for your support, especially at my announcement as the HoCSF and that support has continued, up till date.
“We, therefore, thought it fit that we should organise this event just to interact with you to strengthen the bond that this office has with the media, “ she said.
The HoCSF recalled that her office had continued with programmes she met on ground upon assumption of office, especially the ongoing reforms on Federal Civil Service Strategy and Implementation Plan (FCSSIP- 2022 to 2025).
She, therefore, appealed to the media for continuous reportage on the initiative, so as to give it the necessary publicity for proper dissemination to the citizens.
“You will recall that the office has the Federal Civil Service Strategy and Implementation Plan (FCSSIP- 2022 to 2025) and that is the plan that we are still driving.
“We want to request that you collaborate more with us, we are asking that the friendship, the partnership go beyond what it is now to ensure that the reforms which this office is driving get the full publicity it requires,” she said.
Walson-Jack used the medium to announce the preparation to re-introduce the civil service national anthem officially for the entire civil servants to recite at every national programme.
“The anthem has been re-introduced to drive the reforms and it’s expected that the anthem will be sung by all federal civil/public servants and indeed Nigerians.
“And it will be an anthem that will encourage every public servants to be efficient, productive, incorruptible and citizen-centred, “ she added.
Participants at the event congratulated Mrs Walson-Jack for her uplifting to the position of the HoCSF and pledged to continue in the relationship.
In a response, Mr Ephraims Sheyin, Editor-in-Chief, News Agency of Nigeria (NAN), pledged the agency’s readiness to give the HoCSF the needed support.
According to him, supporting government policies has always been NAN’ priority as government’s owned media organisation.
“You can take it for granted that we are going to give the Office total support. It is part of our own mandates to support Federal Government policies, so we are going to do that fully for the head of service.
“As she said, she has her policies which are in tandem with the federal government policies, she is asking for the support in implementation of the Federal Government policies.
“She has very lofty ideas, she has lofty things that she believes that we should do. Our job is to make sure that whatever government wants to do, we have to support such policies, “ he said.
Speaking in the same vein, Mrs Halima Musa, Director News, NTA, assured her office’s partnership with the Head of service towards ensuring communicating the needed values on excellence, incorruptibility and new culture of efficiency to the public.
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LG Polls: Rogue Policemen Break RSIEC Gate, Strong Room To Steal Electoral Materials …Fubara Foils Attempt To Cart Away Materials
Rivers State Governor, Sir Siminalayi Fubara has foiled an attempt by the Nigerian Police, led by the Deputy Commissioner of Police (Operations), to take over the Rivers State Independent Electoral Commission (RSIEC) at 1am on Friday, 4th October, 2024.
The rogue policemen were said to have attempted to scale through the gates and strong room of the Commission to cart away sensitive Electoral materials meant for the conduct of Saturday’s local government election in the State.
The deployment was said to have been ordered by the Inspector-General of Police.
However, the evil plots of the rogue policemen and DC Ops were botched when vigilant security officials alerted principal officers of the Commission and relevant government authorities, who immediately informed the Governor of the development.
The Governor immediately led a team of government officials, lawmakers from the National Assembly and State House of Assembly, top political stakeholders, and other leaders to storm the facility.
Addressing newsmen in front of RSIEC Office on Aba Road in Port Harcourt, after an encounter with the rogue policemen, the State Governor, Sir Siminalayi Fubara condemned the conduct of the policemen on illegal duty, saying that the IGP was taking his friendship with some Abuja-based politicians too far.
He restated the position that the attempt to surreptitiously withdraw policemen already deployed to protect the facility, and replace them with a detachment from a neighbouring State was unacceptable.
He reminded the IGP that local government election was the internal affairs of states, and advised him to allow the federation unit conduct its affairs without interference.
At present, the Chief of Staff, the Speaker of the Rivers State House of Assembly, and State and National Assembly members, alongside other stakeholders, are manning the RSIEC office to ensure that the rogur policemen in two trucks and two Hilux vehicles do not return and that elections will go ahead as scheduled on Saturday.