Buhari seeks lawmakers approval of N4tn for fuel subsidy – Newstrends
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Buhari seeks lawmakers approval of N4tn for fuel subsidy

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President Muhammadu Buhari has sought an approval of N4 trillion as payments for petrol subsidy this year.

This it s contained in a letter addressed to the House of Representatives, titled “Submission of the Revised 2022 Fiscal Framework”.
Femi Gbajamila, speaker of the house of representatives, read the letter during a plenary on Thursday.
In February, President Buhari had requested the provision of N2.557 trillion for petrol subsidy payments in 2022 as petrol subsidy payments gulped N1.43 trillion in 2021.
In the letter dated April 5, Buhari said the incremental provision by N442.72 billion from N3.557 trillion to N4 trillion was necessary in the face of current economic developments, including the increased market price of crude oil aggravated by the Russian-Ukraine war.
“As you are aware, there have been new developments both in the global economy as well as in the domestic economy which have necessitated the revision of the 2022 Fiscal Framework on which the 2022 Budget was based,” he said.
“These developments include spikes in the market price of crude oil, aggravated by the Russian-Ukraine war, significantly lower oil production volume due principally to production shut-ins as a result of massive theft of crude oil between the production platforms and the terminals.”
According to him, the decision to suspend the removal of petrol subsidy at a time when high crude oil prices have elevated the subsidy cost has significantly eroded government revenues.
“Following these developments, it has become necessary to adjust the fiscal framework and accordingly, amend the 2022 Appropriation Act to ensure its successful Implementation,” Buhari said.
He said the adjustments to the 2022 fiscal framework included an increase in the projected oil price benchmark, from $62 per barrel to $73 per barrel, up by US$11 per barrel.
“A reduction in the projected oil production volume by 283,000 barrels per day, from 1.883 million barrels per day to 1.600 million barrels per day,” the letter reads.
“An increase in the Estimated provision for PMS subsidy for 2022 by from N442.72 billion from N3.557 trillion to N4.00 trillion.
“A cut in the provision for federally-funded upstream projects being implemented by N152.80 billion from N200 billion to N352.80 billion.
Based on the above adjustments, the president said the federation account (Main Pool) revenue for the three tiers of government is projected to decline by N2.418 trillion, while FG’s share from the account (net of transfer to the federal capital territory (FCT) and other statutory deductions) is projected to reduce by N1.173 trillion.
He, however, noted that the amount available to fund the FG’s budget is projected to decline by N772.91 billion due to the increase in the projection for independent revenue (operating surplus remittance) by N400 billion.
“Given the urgency of the request for revision of the 2022 Fiscal Framework and 2022 Budget amendments, I seek the cooperation of the National Assembly for expeditious legislative action on this request,” Buhari said.
“Please accept. Right Hon. Speaker, the assurances of my highest consideration.”
The FG had proposed an 18-month extension for the implementation of the petroleum industry law to cater for subsidy shortfall.

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Release Nigerian traders’ data to EFCC, court orders Binance

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Release Nigerian traders data to EFCC, court orders Binance

 

A Federal High Court in Abuja has ordered Binance Holdings Limited, a cryptocurrency exchange platform, to furnish the Economic and Financial Crimes Commission with the comprehensive data of all persons from Nigeria trading on its platform.

Justice Emeka Nwite granted the interim order after ruling on the ex-parte motion moved by the EFCC’s lawyer, Ekele Iheanacho.

This was granted to enable the anti-graft agency to unravel the alleged money laundering and terrorism financing on Binance.

The ex-parte motion was brought pursuant to Sections 6(b), (h), (I), 7(1), (a)(2), and 38 of the Economic and Financial Crimes Establishment Act, 2004 and Section 15 of the Money Laundering (Prevention and Prohibition) Act, 2022 (as amended) and the inherent powers of the court.

An operative of the EFCC, Hamma Bello, in an affidavit he deposed to, said the matter was of utmost urgent public interest.

He said the data provided would enable the commission to accomplish its investigation activities.

He said it was in the interest of justice to grant the application as refusal of the request would largely hamper the commission’s investigation.

He stated, “That the team uncovered users who have been using the platform for price discovery, confirmation and market manipulation which has caused tremendous distortions in the market, resulting in the naira losing its values against other currencies.

“That the damage the platform has caused was clearly explained to the operators of the platform and they were requested to delist the Naira and avail the ONSA on the activities of the Nigerians on their platform,”

He said the information availed to the team by Binance shows that the total trading volume from Nigeria in 2023 alone stood at $21.6 billion.

Binance is a cryptocurrency exchange that lists more than 350 cryptocurrencies globally.

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UK firm to build PH-Enugu-Abuja standard rail line – FG

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UK firm to build PH-Enugu-Abuja standard rail line – FG

The Federal Government has signed a Memorandum of Understanding with Messrs MPH Rail Development Limited, a United Kingdom company for the construction of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line.

The project when completed will be operated under a public-private partnership framework.

These details are contained in a statement issued by the Federal Ministry of Transportation and published on its website.

Under the MoU, the UK firm will manage the design, construction, commissioning, operation and eventually transfer to the Nigerian Railway Corporation.

The ministry stated that the MoU signing followed the approval of the Outline Business Case and the issuance of a compliance certificate by the Infrastructure, Concession, and Regulatory Commission.

This clearance allows Messrs MPH Rail Development (UK) Limited to focus on assembling the necessary documents for the Federal Executive Council (FEC) approval to proceed with the project.

Some of the essential documents for advancing this initiative are listed as a comprehensive feasibility study report, a full Business Case Study, an Environmental and Social Impact Assessment, the production of a Resettlement Action Plan, and the design of a Financial Model to implement the project.

This would ensure transfer of the line to the Federal Government under a PPP arrangement without incurring loans or debts for the Nigerian government or its agencies.

At the MoU signing ceremony, Alkali pledged the ministry’s support for the successful implementation of the project.

He emphasized the importance of diligent preparation and submission of all requisite documents to expedite FEC’s approval.

The statement read in part, “As part of the initiative to consolidate the ongoing railway modernisation projects consistent with the Renewed Hope Agenda of Presidential Bola Ahmed Tinubu administration, the Minister of Transportation, Senator Saidu Ahmed Alkali, has executed a Memorandum of Understanding on behalf of the Federal Ministry of Transportation with Messrs MPH Rail Development (UK) Limited to enable the company to carry out the design, construction, commissioning, operation and transfer of the Port Harcourt–Enugu–Calabar–Abuja Standard Gauge Rail Line on Public – Private Partnership basis.”

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No approvals from FEC for borrowing through eurobond, says DMO

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No approvals from FEC for borrowing through eurobond, says DMO

The Debt Management Office (DMO) says it has not secured approval of the Federal Executive Council for the appointment of advisers and eurobond issuance.

The Federal Government could raise as much as $1 billion in external borrowing in 2024 through this method to meet its spending needs.

On March 13, there were reports Nigeria had hired investment banks to seek advice on its first eurobond issue since 2022.

But the DMO in a statement on Friday said it had not appointed transaction advisers.

“The appointment of Transaction Advisers by the DMO is done in accordance with the provisions of the Public Procurement Act, 2007 and is subject to the approval of the Federal Executive Council (FEC),” DMO said.

“Also, the Issuance of Eurobonds by the Federal Government of Nigeria in the International Capital Market is subject to the approval of the FEC and receipt of the Resolution of the National Assembly (NASS) in accordance with the provisions of the Fiscal Responsibilities Act, 2007 and Debt Management Office (Establishment, Etc.) Act, 2003.

“Currently, the DMO has not received the requisite approvals from the FEC and Resolution of the NASS for any Eurobond Issuance.”

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