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MTEF-FSP: Finance Minister express worry overNigeria’s borrowing spree

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****Says, adequate revenue needed to fund Budgets

***As Senate panel raises concerns over MDAs poor revenue projections, leakages

Nigeria can not continue in its borrowing habit to fund 2023 national budget, the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun has indicated

He said the country has no option but to make necessary sacrifices to generate adequate revenues to reduce its current high deficit financing.

The Minister spoke on Thursday when he appeared before the joint Senate Committee scrutinising the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper under the leadership Senator Sani Musa.

Edun briefed the joint panel in company of the Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji and the Director General of the Debt Management Office, Ms. Patience Oniha, before the lawmakers called for a closed session.

The Minister insisted that the best way Nigeria could fund its annual budgets was to spend more money on infrastructure that could generate revenues.

He also indicated that the advanced countries have increased their interest rates because they wanted to bring down inflation rate to stabilize their economy.

The Minister pointed out that accessing foreign loans would therefore be very expensive for a developing country to cope with.

Edun said, “Clearly the environment that we have now, internationally as well as nationally we are in no position to rely on borrowing.

“We have an existing borrowing profile. Our direction of tariff is to reduce the quantum of borrowing or intercepting deficit financing in the 2024 budget.

“Simply put internationally there is focus among rich countries on bringing down the inflation rate to stabilize the economies and give them opportunity for investment growth.

“They are in the process,  sacrificing that immediate goal for compacting their economies, or at least contracting the money supplies and pushing up the interest rates and of course high interest rates and investments don’t go together.

“What is left for us to access those funds are expensive so it is the last thing that we must rely on.

“As we know we have all the figures and debt servicing and cushioning 98 per cent of government revenue.

“The last thing you can think of is to pike on more debts. Government needs to not just maintain its activity, it needs to spend more.if you look at government spending,  if you look at the budget as a percentage of GDP,  ours is one of the lowest bein 10%, even Ghana  is at 25%, rich ones they are 50%.

“The very rich countries have to be most advanced in terms of social safety nets and its social security system at 70% of GDP. Government spending definitely will lead to increase.

“The number one source of revenue especially in short term, even in the medium term is all revenue.”

Earlier, Musa, the Chairman of the joint panel scrutinising the MTEF-FSP document expressed the fears that the revenue projections of the ministries, departments and agencies of the federal government that had so far appeared before his panel were a far cry to the what the Federal Government was proposing as income in the 2024 fiscal year.

He noted that going for external interventions would definitely be an option because it would further push the country to further deficit financing.

Musa said, “Currently there are lots of leakages in the use of government resources.

“A lot of funds being generated as revenues by most MDAs are not being remitted as at when due. Some even remits funds a year after they collected the money.

“The office of the Accountant General of the Federation should look properly in that direction.

“The current practice of delaying the remittances of revenues by the MDAs had created a room for the misappropriation of those funds.

“After meeting with the Nigerian Customs Service officials yesterday, we realise that there were lots of shortfalls they are experiencing as a result of incidences of waivers.

“We want to know who is issuing those waivers. Is it the FIRS or the Ministry of Finance?

“We are also interested in knowing details of the Customs modernization project, known as e-customs.

“The Senate Committee on Finance is interested in known the type of agreement that was signed on behalf of the Federal Government of Nigeria.

“What is the value of the e-customs agreement. How much is Nigeria expecting?

“We are tired of judgement debts all over the places. We need to know the plans on ground to collect excise duties and other tariffs so that we won’t run a deficit budget again next year.”

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Nigeria moves towards Energy Independence as Dangote Refinery Supplies PMS Locally

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In a historic move set to transform Nigeria’s energy landscape, the Dangote Refinery has commenced supplying Premium Motor Spirit (PMS) to the Nigerian National Petroleum Corporation Limited (NNPCL).
Director of Information and Public Relations in the ministry of finance, Mohammed Manga in a statement indicated that the development, driven by President Bola Ahmed Tinubu’s administration, marks a critical step in reducing the country’s reliance on imported refined petroleum products and stabilizing the Naira.
Continuing, the statement said that the commencement of local PMS supply is part of a broader initiative by the federal government to boost energy self-sufficiency and enhance the availability of petroleum products in the domestic market.
The statement quoted the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, why speaking at the Dangote refinery to have praised President Tinubu’s vision, highlighting the administration’s commitment to ensuring that raw materials are processed locally to add value before export.

“This moment is a testament to President Tinubu’s foresight in driving Nigeria towards energy self-sufficiency,” Mr. Edun stated.
He lauded Alhaji Aliko Dangote and the Dangote Group for realizing the vision, acknowledging the refinery’s potential to reshape the country’s oil sector.

During the visit, Mr. Edun, along with the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and members of the technical sub-committee overseeing crude oil sales to local refineries, toured the refinery’s advanced facilities.
They witnessed the loading of the first batch of PMS by NNPCL, signaling a significant shift towards domestic fuel supply.
Explaining further the statement said the development in tanderm with the Federal Executive Council, under President Tinubu’s leadership, who approved a plan to supply 385,000 barrels per day of crude oil to domestic refineries, including the Dangote Refinery, with payments made in Naira.
“The official crude-for-Naira transactions are scheduled to commence on October 1st, marking a new era in the Nigerian oil industry.”

Mr. Edun called on other domestic refiners to participate in the effort, emphasizing its potential to boost legal petroleum exports to neighboring countries and generate foreign exchange revenue.
The statement explained further that the initiative not only targeted to meet the nation’s fuel demands but also support economic growth by reducing the strain on foreign currency reserves.

“The partnership between the federal government and the private sector, exemplified by the Dangote Refinery, signals Nigeria’s determination to secure its energy future.
“As local refining and energy production increase, the country is expected to see improvements in foreign exchange earnings and overall economic stability, reinforcing the government’s commitment to a self-sustained economy.

“This milestone demonstrates what can be achieved through visionary leadership and strong collaboration between the public and private sectors,” Minister Edun remarked.

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ASUU decries dismissal, victimization of over 120 members in public varsities

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By Ahmed Rufa’i, Dutse

The Academic Staff Union of Universities (ASUU) has expressed grave concern over the alleged illegal dismissal, harassment, and victimization of more than 120 of its executive and ordinary members across public universities in Nigeria.

In a press statement that signed by the ASUU Kano Zonal Coordinator. Professor Abdulkadir Muhammad, the union condemned the ongoing maltreatment of its members, which it claimed is orchestrated by university administrations with the support of some Governing Council Chairmen and university Visitors.
The statement cited universities such as Kogi State University (KSU), Lagos State University (LASU), Ebonyi State University (EBSU), Ambrose Alli University (AAU), Federal University of Technology Owerri (FUTO), and Chukwuemeka Odumegwu Ojukwu University (COOU) as places where these actions are particularly egregious.

According to the statement, KSU alone dismissed 120 members, five were sacked at LASU, and three were suspended at EBSU, among other cases.
The union described the actions as blatant violations of the right to freedom of association as guaranteed by the Nigerian Constitution.
He describef the harassment is as a response to ASUU members demand fir better working conditions, improved welfare, payment of backlogged salaries, and proper promotions.

ASUU also lamented the lack of implementation of investigation panel recommendations, such as those from a committee established at LASU by Governor Babajide Sanwo-Olu.
Despite findings in favor of ASUU members, the union claimed that the Governor has refused to release the panel’s White Paper, and affected staff members have yet to be reinstated.

Despite a court ruling against its members in Kogi State University, ASUU has vowed to continue seeking legal remedies. The union is urging the administrations of the affected universities, their Governing Councils, and Visitors to respect university laws, end the victimization, and reinstate those who have been unjustly dismissed.

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Nema announces 259 deaths, 625,000 persons displaced by flood in 2024

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The National Emergency Management Agency (NEMA) has reported that 259 persons have been killed by floods that displaced 625,000 persons so far in 2024

According to NEMA’s Director General, Zubaida Umar, the latest figures show that 259 people have lost their lives, while 625,239 have been forced to flee their homes. Additionally, 1,048,312 people have been affected by the floods, which have impacted 29 states and 172 local government areas.
Umar provided the update during the National Emergency Coordination Forum (ECF) meeting, where stakeholders gathered to reassess strategies and responsibilities in response to the disaster.
According to her, the flooding has been particularly severe in Borno State, where a broken dam has exacerbated the situation.
However, NEMA notes that the overall trend is consistent with predictions made in the Annual Flood Outlook released earlier this year.

“Except for the severity of the incident in Borno State due to the broken spillway of the Alau Dam, the trend does not indicate a total deviation from the predictions as contained in this year’s Annual Flood Outlook released by the Nigeria Hydrological Services Agency (NIHSA), which informed that in July to September 2024, 33 states and 135 LGAs are within flood high-risk areas.”

“For the period between October and November, 19 states and 44 LGAs have been indicated.”

Speaking on the Maiduguri flood, the NEMA DG commended the Governor of Borno State, Babagana Zulum, the government, and the Borno State Emergency Management for rising to the occasion and spearheading the response, rescue, and activation of internally displaced persons (IDP) camps for affected persons.
She added that NEMA and other agencies are currently providing nationwide interventions to the affected states.

She said, “Our ongoing intervention across the affected states include deployment of additional personnel to support search and Rescue operations; distribution of water purification and critical search and Rescue equipment; provision of food and non-food items to support the affected persons and the rehabilitation of displaced populations.

“Through our agency, NEMA, the Federal Government commiserates with those that have been affected by the flood disaster and assures them that necessary succour will sustainably be provided.

“We appreciate the support of our humanitarian partners and look forward to the sustained collaborative efforts of all stakeholders to ameliorate the suffering of affected people and also mitigate the impact of the flooding incidents across the country.”

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