Health

Buhari to n’assembly: FG will pay N1.8trn in interest if unable to restructure N23.7trn CBN loan

By Abubakar Yunus Abuja

President Muhammadu Buhari says it will cost the federal government N1.8 trillion in interest if the national assembly fails to approve N23.7 trillion in extra-budgetary spending.

The president had asked the national assembly to approve the sum he said were funds provided by the Central Bank of Nigeria (CBN) through loans for “emergencies” in the space of 10 years.

Last week, the senate suspended the request of Buhari after a rowdy session.

Senators Betty Apiafi and Thompson Sekibo had argued that the request was not constitutional.

They also demanded that before the upper legislative chamber could approve the request, the senate must have the details of what the funds were spent on.

Speaking at the signing ceremony of the 2023 budget in Abuja on Tuesday, Buhari said he has no intention to contest the decision of the lawmakers.

“I also urge the national assembly to reconsider its position on my proposal to securitise the federal government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN),” the commander-in-chief said.

“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.

“I have no intention to fetter the right of the national assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.

“Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus three percent and the negotiated interest rate of nine percent and a 40-year repayment period on the securitised debt of the Ways and Means.”

Fuel queues may persist at major marketers’ outlets –IPMAN

Oil marketers have said fuel queues at filling stations across the country may persist if consumers and motorists’ continue to buy the product at selected filling station dispensing the product below N200/litre.

The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, said on Monday that the lingering queues at some filling stations were caused by consumers who insisted on buying the fuel at cheaper retail outlets.

“There is petrol in the country. No more scarcity, however, the long queues you still see on the expressways is caused by those who want to buy petrol at N180 per litre. Otherwise, those who can afford the more expensive product can easily drive into other stations and buy without queuing up”, he said.

Our correspondent sighted long queues at filling stations belonging to members of the Major Oil Marketers Association of Nigeria, and those of the NNPCL along the Oshodi-Berger Expressway. Findings show that while NNPCL stations sell at N179/litre, major oil marketers sell at N180/litre. However, filling stations belonging to independent petroleum marketers still sell at over N200/litre.

Meanwhile, Peoples Daily on Monday, obtained an internal memo by IPMAN’s President, Chinedu Okoronkwo, informing its over 30, 000 members nationwide that the association will no longer do business with what it termed “NNPC Customer Express.”

As such, the body directed its members to register with the “NNPC Retail” effective January 1, 2023.

While also directing members to book their orders under the new platform, it assured the members that firms that had paid using the previous platform would get their products.

Independent oil marketers had in December 2022, reportedly inked a deal with the new NNPCL Retail Managing Director, Hubb Stockman, for the direct supply of petrol to IPMAN members at government regulated price of N148/litre, starting from this month.

Spokesperson for NNPCL, Garba Deeen, declined speaking on the fuel scarcity despite several calls and messages sent to his official line and email.

Buhari signs Nigeria’s 2023 budget into law

By Abubakar Yunus Abuja

President Muhammadu Buhari has signed Nigeria’s 2023 budget into law, his office has announced.

Peoples Daily reported that the National Assembly had earlier passed the budget totalling N21.83 trillion.

“Speaking at the signing of the eighth and final annual budget of this Administration, the President said the aggregate expenditures of N21.83 trillion, is an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion,” Femi Adesina, the president’s spokesperson wrote in a statement on Tuesday

Mr Buhari explained that the 2022 Supplementary Appropriation Act would enable the administration to respond to the havoc caused by the recent nationwide floods on infrastructure and agriculture sectors.

According to him, the Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act. ”We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal. ”The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion. ”It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified. ”I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion.”

President Buhari said his decision to sign the 2023 Appropriation Bill into law as passed by the National Assembly was to enable its implementation commence without delay, considering the imminent transition process to another democratically elected government.

He, however, directed the Minister of Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes made to the Executive budget proposal, expressing the hope that the National Assembly will cooperate with the Executive arm of Government in this regard.

He urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN). ”As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings. ”I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval. ”Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means.”

To ensure more effective implementation of the 2022 capital Budget, President Buhari thanked the National Assembly for approving his request for an extension of its validity date to 31st March, 2023.

This is as he directed the Ministry of Finance, Budget and National Planning to work towards early release of the 2023 capital votes to enable Ministries, Departments and Agencies commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.

Reiterating that the 2023 Budget was developed to promote fiscal sustainability, macroeconomic stability and ensure smooth transition to the incoming Administration, the President said it was also designed to promote social inclusion and strengthen the resilience of the economy.

He pledged that adequate provisions have been made in the Budget for the successful conduct of the forthcoming general elections and the transition programme.

On achieving revenue targets for the budget, the President directed MDAs and Government Owned Enterprises (GOEs) to intensify their revenue mobilization efforts, including ensuring that all taxable organizations and individuals pay taxes due.

To achieve the laudable objectives of the 2023 Budget, the President said relevant Agencies must sustain current efforts towards the realization of crude oil production and export targets. ”To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fasttrack the pace of our infrastructural development. ”This, being a deficit budget, the associated Borrowing Plan will be forwarded to the National Assembly shortly. ”I count on the cooperation of the National Assembly for a speedy consideration and approval of the Plan.”

On the Finance Bill 2022, the President expressed regret that its review as passed by the National Assembly is yet to be finalized. ”This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government. I urge that this should be done speedily to enable me to assent into law,” he said.

Those who witnessed the signing of the budget include Senate President Ahmad Lawan and the Speaker of the House of Representatives, Femi Gbajabiamila.

The President thanked the Senate President, the Speaker of the House of Representatives, and all the distinguished and honourable leaders and members of the National Assembly for the expeditious consideration and passage of the Appropriation Bill.

He also recognised the roles played by the Ministers of Finance, Budget and National Planning, the Budget Office of the Federation, the Senior Special Assistants to the President (Senate and House of Representatives), the Office of the Chief of Staff, as well as all who worked tirelessly and sacrificed so much towards producing the 2023 Appropriation Act. ”As I mentioned during the presentation of the 2023 Appropriation Bill, early passage of the budget proposal is critical to ensure effective delivery of our legacy projects, a smooth transition programme and effective take-off of the incoming Administration. ”I appreciate the firm commitment of the 9th National Assembly to the restoration of a predictable January to December fiscal year, as well as the mutual understanding, collaboration and engagements between officials of the Executive and the Legislative arms of government. ”These have made the quick consideration and passage of our Fiscal bills possible over the last four years.”

Buhari expressed the belief that the next Administration would sustain the early presentation of the annual appropriation bill to the National Assembly to ensure its passage before the beginning of the fiscal year. ”I firmly believe the next Administration will also sustain the current public financial management reform efforts, further improve the budgeting process, and particularly maintain the tradition of supporting its Appropriation Bills with Finance Bills designed to facilitate their implementation.