Finally, FG begins moves to scrap duplicated agencies – Newstrends
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Finally, FG begins moves to scrap duplicated agencies

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The Federal Government is set to scrap agencies found to be redundant or doing the job of existing ones as part of measures to reduce the cost of governance.

It has therefore set up two committees to review all its agencies created since 2014, after a white paper was released on the report of the Committee on the Restructuring and Rationalization of Federal Government Parastatals, Commissions and Agencies.

Inaugurating the subcommittees on Thursday, Secretary to the Government of the Federation SGF, Mr Boss Mustapha, said it was also improper for government to continue to fund professional bodies.

Mustapha, who was represented by the Head of the Civil Service of the Federation HOS, Dr Folasade Yemi-Esan, declared that there was futility in creating another body to perform the functions of an already existing statutory entity, noting that the inefficiency and ineffectiveness of an existing institution does not justify the creation of a new one.

He said, “Nigeria has continued to suffer under a daily increasing weight of a high cost of governance under-pinned by high personnel and overhead costs to the detriment of having adequate resources for development projects.

“For a long time now, the country has been struggling to make sure that at least 30% of its annual budget goes into capital projects.

“The inability to implement the report of the Committee on Restructuring and Rationalization of Federal Government Parastatals, Agencies and Commissions is costing government highly. This cost grows higher for every delay that the implementation suffers.

“This is further worsened by the fact that immediately after the report was released, parastatals and agencies billed for mergers or scrapping began developing means of further entrenching themselves as a major expenditure source to government.

“Furthermore, new agencies were also created to compound the situation.  Besides, the impropriety of government funding professional associations, the underlying principles for restructuring and rationalizing these government agencies remain more urgent now than when the initial committee was constituted in 2011.”

He said the two subcommittees “are to review the main report and White Paper on restructuring and rationalization of federal government parastatals, agencies and commissions; and review new agencies created after the submission of the above report from 2014 to date.”

According to him, this will provide government with action plan and road map to implement the recommendations contained therein.

The Committee on the Restructuring and Rationalization of Federal Government Parastatals, Commissions and Agencies was constituted on August 18, 2011, and submitted its report on  April 16, 2012.

While the report recommended that of the 541 statutory and non-statutory Federal Government parastatals, agencies and commissions, 263 statutory agencies should be reduced to 161, it added that 38 agencies should be abolished, 52 agencies merged, and 14 reverted to departments in ministries.

While the subcommittee on the main report is chaired by a former Head of Service, Mr Goni Bukar Aji and has nine other members, including eight federal permanent secretaries, the subcommittee in the review of new agencies/parastatals created after the main report in 2014, is also chaired by a former Head of Service, Ms Amal Pepple.

 

 

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CBN raises commercial banks’ capital base to N500bn

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CBN raises commercial banks’ capital base to N500bn

The Central Bank of Nigeria (CBN) has increased the minimum capital requirements for commercial, merchant and non-interest banks.

The CBN increased the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were fixed at N200 billion and N50 billion, respectively.

This was announced in a statement on Thursday, noting that the increase was due to prevailing macroeconomic challenges and headwinds.

The statement signed by Haruna Mustafa, director, financial policy and regulation department at the CBN.

It said the upward review would enhance the banks’ resilience, solvency and capacity to continue to support the growth of the Nigerian economy.

Also, the CBN raised the merchant bank minimum capital requirement to N50 billion for national licence holders.

The financial regulator said the capital base for national and regional non-interest banks is N20 billion and N10 billion, respectively.

To meet the minimum capital requirements, the CBN advised banks to consider the injection of “fresh equity capital through private placements, rights issue and/or offer for subscription”.

The CBN also suggested merger and acquisition (M&A), as well as upgrade or downgrade of licences.

“The minimum capital specified above shall comprise paid-up capital and share premium only. For the avoidance of doubt, the new capital requirement shall not be based on shareholders’ funds,” it stated

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Tinubu orders creation of single-digit tax system

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Tinubu orders creation of single-digit tax system

President Bola Tinubu has directed a creation of a single-digit tax system with a maximum of nine taxes for a company or an individual.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja while speaking with the management team of Guinness Nigeria who paid him a visit.

A statement on Wednesday by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, quoted Adedeji as saying, “The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes.”

The statement added that the plan was aimed at having a conducive environment “created for businesses to flourish and grow the economy.”

 

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Naira gains further against dollar

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Naira gains further against dollar

The Naira rose further in the official market on Tuesday, trading at N1,382.95 to the dollar.

According to data from the FMDQ’s official trading portal, the Naira rose by N25.09, or 1.78 percent, from the previous day’s rate of N1,408 versus the dollar.

On Tuesday, total turnover was $245.58 million, up from $222.15 million on Monday.

Meanwhile, at the Investor’s and Exporters (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.

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The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR) by 200 basis points from 22.75 per cent to 24.75 per cent.

CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.

Naira gains further against dollar

(NAN)

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