The Senate on Tuesday, passed the 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
The MTEF and FSP are documents that provide the framework of designing a budget as enshrined in section 11 (3)of the Fiscal Responsibility Act, 2007.
President Muhammadu Buhari had on November 6, 2018, sent a letter to the National Assembly detailing the provisions of the two documents.
In it, he made proposals for budget deficit, crude oil benchmark price, exchange rate, among others.
The Chairman Senate committee on Finance, John Enoh who presented said the committee maintained the daily production output of crude oil at 2.3 million barrel per day, USD $60.0/6 as crude oil benchmark price, N305/1US$ as the exchange rate and N500 billion as special intervention fund – as proposed by the president.
On crude oil production, the committee advised that target be achievable due to the “continuous effort of all stakeholders in checkmating the issues of oil facilities vandalism and other vices associated with such regard.”
The committee, however, reduced the proposal for the budget deficit largely financed by borrowing from N1.86 trillion to N1.64 trillion.
It was recommended that the Central Bank of Nigeria continue to adopt strategies on exchange rate that will aid in the “strengthening of the Naira and bridging the gap between the official and parallel market rate of the foreign exchange.”
The committee also urged relevant agencies to continue exploring way of generating additional revenues to bring down the fiscal deficit.
Other suggestions from the committees asked that “the Federal Government should harness the full optimal potential of the Federal Ministry of Mines and Steel Development in terms of Revenue Generation to minimise the level of borrowing.
“The Federal Government should consider reducing the granting waivers and exemptions while ensuring that the Nigerian Customs Service personnel are at all oil terminals for accountability and the Federal Inland Revenue Service (FIRS) should consider increasing Tax on luxury goods and services.
“Twenty per cent operating surplus to be remitted by Government owned Enterprises should be deducted at source.”
The Senate’s approval comes weeks after Minister of Budget and National Planning, Udoma Udoma, appeared before the Senate to explain why the federal government made slight adjustments on the 2019 MTEF/FSP approved by the Executive Council of the Federation.
He said the adjustment was to accommodate some ‘unanticipated expenditure items’ in the 2019 budget proposals and the adjustments only affected the projected expenditure.
Nigeria Outlines Nine Focal Areas to Guide Foreign Policy in Next Four Years
Nigeria has identified nine priority areas that would guide its foreign policy actions in the next four years.
The Minister of Foreign Affairs, Geoffrey Onyeama, made this known in Abuja while briefing members of the diplomatic corps on the priorities of the Nigerian government.
The priority areas include building a striving sustainable economy; enlarging agricultural output, food security and export; as well as attaining energy sustenance and power.
Others include expanding transport and other infrastructural products; expanding business growth entrepreneurship and industrialisation; expanding access to quality education, affordable healthcare and productivity of Nigeria; enhancing social inclusion, reducing poverty; fighting corruption; as well as improving governance and security for all.
News Agency of Nigeria (NAN) reports that in the first term of the present administration, the government’s priority was in three key areas, namely: fighting corruption, tackling insecurity, and job creation.
He said Nigeria’s foreign policy would henceforth be realistic in terms of reflecting the domestic reality of putting “Nigeria First”.
“We promote within the African Union (AU) good governance, democracy, and protection of human rights.
“We are not in any kind of conflict with any country in the whole world and we have excellent relations with every member state of AU and UN.
“We believe firmly that peaceful coexistence and security are pre-conditions for economic development and prosperity.
“We believe that the UN and multilateralism are forces for good.
The minister said more funds should be made available for UN peace-keeping operations.
Mr Onyeama, who said that the UN was doing a great job across many countries of the world, urged countries to continue to abide by UN resolutions, not choosing which ones to respect and which not to respect.
He condemned the use of force for the settlement of disputes and expressed strong support for institutions such as the International Court of Justice and the International Criminal Court for International conflict resolution.
He said international trade and economic diplomacy were the main focus of “our foreign policy.”
“We have to expand our trade; we have to innovate; we have to industrialise in order to lift our people out of poverty.
“We are striving to increase bilateral trade with all your countries very often within the framework of a bilateral commission.”
The minister disclosed that the ministry was building an online business machine portal to promote and facilitate cross-border trade.
According to him, global climate action has posed a lot of threat to lives.
He said the Lake Chad which had been a major source of livelihood for more than 30 million people, had shrunk by 90 per cent due to climate change.
He noted that irregular migration has been condemned and possible measures have been put in place to address it.
On border closure, the minister said the issue would be resolved very soon and that it would be a win-win situation for stakeholders.
He thanked the diplomats for their support and assured them of the Nigeria’s continued support.
Buhari Embarks on First 2020 Foreign Trip, Departs for UK Today
President Muhammadu Buhari will depart Abuja on Friday for London to participate in the inaugural UK-Africa Investment Summit holding on January 20.
The President’s Special Adviser on Media and Publicity, Femi Adesina, in a statement in Abuja on Thursday, said the event would be hosted by the British Prime Minister, Boris Johnson.
The organisers said the event is expected to bring together African leaders, international business chief executives and heads of international organisations “to create new partnerships that will deliver more investments and jobs” to the benefit of people and businesses in African countries and the United Kingdom.
“Apart from highlighting new perspectives on UK-Africa Partnership for Prosperity, issues of Sustainable Finance and Infrastructure; Trade and Investment; Future African Growth Sectors and Clean Energy and Climate, are expected to dominate presentations and discussions during the Summit.
“With the expected take-off of the African Continental Free Trade Area (AfCFTA) in mid-2020, the London investment summit will provide Nigeria with the opportunity to project itself as a leading investment destination for new industries.
“In addition, the summit will deepen Nigeria-United Kingdom investment ties post-Brexit given that Africa currently represents just two per cent of British trade activity, with Nigeria accounting for only 10 per cent of that total,” Mr Adesina stated.
He further disclosed that the Nigerian delegation to the investment meeting will showcase what the federal government had done through policies and legislation to improve the investment and business climate in the country.
While in the United Kingdom, the presidential aide said, Mr Buhari will meet with the Head of the Commonwealth, Prince Charles in Glasgow, Scotland.
“The president and his delegation will also have bilateral meetings with Prime Minister Johnson as well as heads of multilateral organisations,” he added.
He said the president would be accompanied to the Summit by Governors Yahaya Bello, Muhammad Inuwa Yahaya and Okezie Ikpeazu of Kogi, Gombe and Abia States, respectively.
Also on the presidential entourage are the Minister of Foreign Affairs, Geoffrey Onyeama; Minister of Industry, Trade and Investment, Niyi Adebayo, and the Minister of Finance, Budget and National Planning, Zainab Ahmed.
Others include the National Security Adviser (NSA), Babagana Monguno, and the Director General of the National Intelligence Agency (NIA), Ahmed Rufai Abubakar.
Mr Buhari is expected back in Abuja on Thursday.
Power Grid Collapses Twice in Two Hours, Worsens Nationwide Blackout
The nation’s power grid collapsed twice in two hours on Thursday, worsening the blackout being experienced by consumers in parts of the country.
The grid, which is being managed by government-owned Transmission Company of Nigeria, has continued to suffer system collapse over the years amid a lack of spinning reserve that is meant to forestall such occurrences.
The TCN announced that a system disturbance occurred at about 12.34pm on Thursday, affecting some parts of the country.
“As at 1:10pm, supply was restored to Abuja and most parts of the affected areas. The TCN is still working to completely restore and stabilise the nation’s grid,” it said.
Ikeja Electric and Eko Electricity Distribution Company, two of the nation’s distribution companies, had earlier on Twitter informed their customers about the cause of the outage in Lagos.
“Dear customer, the outage you’re experiencing is due to a system collapse of the grid which occurred this afternoon at 12.36hrs. All parts of IE’s network are affected. Efforts are ongoing to restore the grid. Kindly bear with us,” Ikeja Electric said.
The Disco, in another tweet two hours later, said another system collapse was recorded at 2.15pm, adding that restoration efforts were ongoing.
Total power generation in the country stood at 4,236.3 megawatts as of 6am on Wednesday, according to latest data from the Nigerian Electricity System Operator.