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Senate Finance Committee Reviews Crude Oil Sales in Naira as Part of Economic Reform Agenda

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Sani Musa

***Acknowledges decrease in debt-to-GDP ratio from over 90% to around 60%

***Says reforms would soon bring down inflation, market volatility

Chairman of the Senate Committee on Finance, Senator Sani Musa, has addressed key developments following a crucial meeting with the Minister of Economy, the CEO of the Nigerian National Petroleum Company (NNPC), and other top government officials.
The discussions that happened at the Senate recently centered around President Bola Ahmed Tinubu’s recent directive to sell crude oil in naira, a move aimed at boosting the use of local refineries and reducing pressure on Nigeria’s foreign exchange reserves.
Nusa stated that the session was convened to assess the effects of the reforms on the Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper for 2024-2026.
He said It also aimed to address concerns about shortfalls in revenue remittances from the Nigerian National Petroleum Corporation Limited (NNPCL), particularly regarding the foreign and domestic excess crude accounts.

Senator Musa highlighted that while the 2024 budget was initially based on crude oil sales in dollars, there were concerns about potential implications of the shift to naira, particularly regarding exchange rates and the possibility of introducing hidden subsidies.
However, he reassured that the government clarified there would be no adverse impact on foreign reserves, as they remain primarily reliant on export-based crude sales. “The conversion of crude sales into naira will not affect the reserve or the exchange rate,” he affirmed.

The meeting also touched on broader economic issues, including inflation, food security, and the 2024 budget’s performance.
The Minister of Finance and Coordinating Minister of the Economy provided updates on efforts to curb inflation and ensure food security amid rising global challenges.
Additionally, the committee discussed changes in the payment system to enhance transparency and minimize financial leakages.

Senator Musa noted improvements in Nigeria’s debt management, with the national debt-to-GDP ratio decreasing from over 90% to around 60%, signaling positive movement in the nation’s fiscal health.
He acknowledged that while these improvements might not yet be felt directly, key economic indicators show progress.

One of the critical points raised during the meeting according to the chairman was the reduction of foreign exchange demand linked to oil importation, which constitutes about 65% of Nigeria’s forex needs.
By shifting crude oil sales to naira, he explained that the government aims to alleviate pressure on the currency and stabilize market fluctuations. Senator Musa expressed optimism that the reforms will yield positive results over the next 16 to 18 months, particularly in reducing market volatility and controlling inflation.

The Senate Finance Committee he assure will continue to work closely with the executive to ensure the economic reforms are effectively implemented while promising regular updates on their progress.

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Senate

Senate Asks NWDC, SEDC Nominees to Uphold Trust, Integrity

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The Senate has charged nominees for the Governing Boards of the North West Development Commission (NWDC) and South East Development Commission (SEDC) to justify the confidence reposed in them by President Bola Ahmed Tinubu and Nigerians.

The admonition was made during the screening session conducted on Monday by the Senate Ad-Hoc Committee on Regional Development Commissions, chaired by Senator Orji Uzor Kalu (APC, Abia-North).
Senators underscored the importance of ethical governance and development-focused leadership in the commissions, warning nominees against betraying public trust.

Prof. Abdullahi Shehu Ma’aji, who retained his position as Managing Director of the NWDC, led the commission’s 14 nominees. Other appointees included Alhaji Lawal Samai’la Abdullahi (Chairman), Dr. Yahaya Umar Namahe, Hon. Aminu Suleiman, and several others.

The SEDC’s 18-member board was led by Dr. Emeka Nworgu (Chairman) and Hon. Mark C. Okoye (Managing Director/CEO), supported by prominent figures such as Barr. Ugochukwu Agballah, Chief Hyacinth Ikpor, and Dr. Clifford Ogbede, among others.
Speaking during the session, Senator Babangida Hussaini reminded the nominees of their responsibility to Nigerians and the president.

“Candidly speaking, you must realize that the confidence of Nigerians and President Tinubu, who found you worthy of this appointment, rests on your shoulders. Justify this trust, work for Nigerians, and address the many challenges we face. Don’t let Nigeria or the president down,” he said.

Senator Orji Uzor Kalu reiterated the importance of prioritizing public interest and warned against unethical practices.

“You are the face of these organizations, and we will not tolerate anything that tarnishes the image of the commissions or brings disrepute to the president. Use allocated funds strictly for development projects, and don’t pay for jobs that aren’t done. The Senate will oversee your activities closely, and any misconduct will be reported to the president for appropriate action,” Kalu cautioned.

The committee highlighted the urgency of the nominees’ clearance due to the ongoing budget process. Kalu stressed the need for collaboration between the commissions and the National Assembly to ensure timely project execution and budget implementation.

“We are clearing you now because of the budget process. If you fail to act appropriately, your commissions may miss out on key developmental funding. Improve your relationship with the National Assembly to foster progress,” he added.

With no objections raised against their clearance, the nominees are expected to formally assume their roles soon. The Senate has assured Nigerians of its commitment to monitoring the activities of the commissions to ensure accountability and tangible development in the North West and South East regions.

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Senate Panel on Army Condoles Nigerian Army Over Soldiers Killed in Borno

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Abdulaziz Musa Yaradua

The Senate Committee on Army has expressed profound grief over the death of six gallant soldiers who lost their lives during a clash with ISWAP/Boko Haram insurgents in Sabon Gari, Damboa Local Government Area of Borno State on January 4, 2025.

In a statement issued by the Chairman of the Committee, Senator Abdulaziz Musa Yaradua, the Senate extended heartfelt condolences to the Nigerian Army and the families of the fallen heroes. “Their sacrifice for the peace and security of Nigeria will not be forgotten. These brave soldiers paid the ultimate price for the nation, and their legacy will continue to inspire generations,” Senator Yaradua said.

The Committee commended the military’s unwavering dedication to combating terrorism and restoring stability to affected regions. It called on the troops to remain steadfast in their mission despite the painful loss of their colleagues.

As the Nigerian Army prepares to mark Remembrance Day on January 15, the Committee assured the military of the Senate’s unwavering support and reiterated the nation’s commitment to honoring the sacrifices of its fallen heroes.

“The Senate Committee on Army stands in solidarity with the Nigerian Army during this challenging period and remains committed to supporting all efforts toward achieving lasting peace and security in the country,” the statement concluded.

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Senate Committee Asks NOA, NAN to Restructure 2025 Budget Plans

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The Senate Committee on Information and National Orientation has directed the National Orientation Agency (NOA) and the News Agency of Nigeria (NAN) to rework and resubmit their 2025 budget proposals following a critical budget defense session on Thursday.
The committee, led by Senator Kenneth Eze (APC, Ebonyi Central), raised concerns about the practicality, transparency, and anticipated impact of the projects proposed by both agencies. In particular, the NOA’s flagship National Identity Project came under scrutiny for its lack of visibility and grassroots engagement.
Senator Eze criticized the NOA for presenting programs that fail to connect meaningfully with the populace or reflect clear national benefits. “Programs must resonate with the people and contribute visibly to national development. The current proposal lacks these elements,” Eze asserted.
In response, NOA Director General Mallam Issa-Onilu defended the National Identity Project, describing it as essential for fostering unity and a shared value system among Nigerians. “The challenge with our value system is tied to our national identity. This project is vital for galvanizing Nigerians toward nation-building, development, and growth,” he explained.
Despite Issa-Onilu’s defense, the committee was unconvinced and insisted that the NOA refocus its programs to better align with national development priorities before seeking approval for funding.
Similarly, the News Agency of Nigeria faced criticism over discrepancies in its 2024 budget performance report. NAN Director General Ali Mohammed Ali was urged to reconcile the figures and ensure greater accountability in the agency’s financial management.
“We expect precision and accountability in the use of public funds. Disjointed figures undermine trust and make it difficult to plan effectively,” Senator Eze remarked.
The committee’s directive reflects its determination to uphold transparency and efficiency in the allocation of public funds for the 2025 fiscal year. Both agencies have been given time to revise their proposals and return for further evaluation.
This development underscoreed the Senate’s ongoing commitment to scrutinizing budgetary submissions to ensure they serve the nation’s best interests and deliver measurable outcomes for Nigerians.

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