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FG spent N2tn on debt servicing in six months – Finance minister

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  • N3tn released for capital projects

The Federal Government spent N2.02 trillion on debt servicing in the first six months of 2021 (January-June), Minister of Finance, Budget and National Planning, Zainab Ahmed, has said.

The amount represents 90.6 per cent of the retained revenue of N2.23 trillion for the period.

Ahmed said the FG’s retained revenue amounted to 67.3 per cent of the target.

She stated this on Monday, in Abuja, during the 2022- 2024 2022-2024 medium-term expenditure framework/ fiscal strategy paper (MTEF/FSP) committee interactive session.

Last year, out of total revenue of N3.42 trillion, the FG spent N3.34 trillion on debt servicing – implying that for every N100 earned as revenue, N97 was spent on debt servicing.

Given the breakdown, the minister said oil revenue was N492.44 billion, representing 49 per cent performance, while the non-oil revenue totalled N778.18 trillion at 104.5 percent performance, according to the News Agency of Nigeria.

According to her, companies income tax (CIT) and value-added tax (VAT) collections are ahead of the budget targets with N397.02 billion and N129 billion.

This, she added, represented 116.5 per cent and 108.2 per cent targets for the period.

Ahmed said that Customs collection was N234.02 billion at 92.1 percent of target, adding that other revenues amounted to N922.09 billion — out of which independent revenue was N558.13 billion.

On the expenditure performance, Ahmed said N5.81 trillion, representing 92.4 per cent of the budget had been spent, adding that this excludes GOEs and project-tied debt expenditure.

“Of the expenditure, N2.02 trillion was for debt servicing, which is 35 percent of the Federal Government expenditures and N1.795 trillion for personnel cost,” Zainab said.

“This is including pension at 30.9 percent of Federal Government revenue.”

She noted that as of June, N1.3 trillion, which represented 84.7 per cent, had been released for capital expenditure.

The finance minister said that the country faced serious economic challenges in 2020, with the microeconomic environment significantly disrupted by the COVID-19 pandemic.

She said the economy sustained a tepid recovery in the first quarter of 2021.

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SERAP sues Buhari over alleged missing N11tn electricity fund

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President Muhammadu Buhari has been dragged to court by the Socio-Economic Rights and Accountability Project (SERAP) for allegedly failing probe N11tn electricity fund said to missing.

The money, according to SERAP, was meant to provide regular electricity supply for the country since 1999, and it is suspected to have “been stolen, mismanaged or diverted into private pockets.”

In the suit number FHC/L/CS/1119/2022 filed last week at the Federal High Court, Lagos, SERAP sought for “an order of mandamus to direct and compel President Buhari to investigate how over N11 trillion meant to provide regular electricity supply has been allegedly squandered by governments since 1999.”

This is coming after it was reported that Nigeria’s electricity grid has collapsed at least three times within five months, and 130 times in seven years, plunging many households across the country into darkness.

 

 

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Toyota-Suzuki joint SUV coming in August, Africa listed

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The collaboration between Toyota and Suzuki is set to manifest in concrete terms as Toyota says it will start the production of a new SUV model developed by Suzuki at Toyota Kirloskar Motor Pvt. Ltd from August.

The Suzuki-developed SUV will come with mild and strong hybrid variants – made in India for both brands, multiple sources including motorauthority.com report.

The two companies are said to be planning to export the new model to markets outside India including Africa.

Toyota and Suzuki are promoting mutual supply of vehicles globally, which is one of the collaborations in their business partnership.
The two companies signed a memorandum of understanding for a business alliance in 2017. Since then, the two companies have been bringing together Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles for joint collaboration in production and in the widespread popularization of electrified vehicles.
The powertrains of the new model to be on sale in India will be equipped with mild hybrid developed by Suzuki and strong hybrid developed by Toyota.
By bringing together strengths of both Toyota and Suzuki through the collaboration, the two companies say they will be able to provide a wide variety of vehicle electrification technologies to customers and contribute to the acceleration of electrification and the realization of a carbon-neutral society in India.

While Suzuki leads and understands the India market, Toyota brings hybrid tech to the table.

Maruti Suzuki India Limited and TKM will market the new model in India as Suzuki and Toyota models, respectively.

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Ford to end production of Focus in 2025

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Ford has confirmed that it will stop producing the Focus model in 2025, in a move that threatens the longer-term future of its Saarlouis, Germany plant that only makes that model.

Nigeria may not miss the exit of the Focus as it has not really been as popular as other Ford models such as the Escape, the Edge and Everest.

Ford however said that its plant in Saarlouis would continue to produce the Ford Focus passenger car, while the company is also evaluating options for future site concepts.
In Europe, Ford has emphasised the future role for electrified models – which includes its Cologne plant in Germany being a hub for EV production. It will build a new SUV based on VW’s MEB platform from 2023.
Ford also recently announced that its Valencia, Spain, plant would receive investment for making electric vehicles on a next-generation electric vehicle architecture.

 

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