Daybreak, Politics, Entertainment, Sport

Tag: Zainab Ahmed

  • FG Announces $800m World Bank Grant For Subsidy Palliatives

    FG Announces $800m World Bank Grant For Subsidy Palliatives

    The Federal Government has announced a $800 million World Bank grant, as part of its subsidy palliatives measures.

    The Minister of Finance, Budget and National Planning, Zainab Ahmed disclosed this during the weekly after the Federal Executive Council meeting chaired by President Muhammadu Buhari today (Wednesday).

    According to the minister, the palliatives would be targeting 50 million vulnerable Nigerians or 10 million households.

    Ahmed underscored that engagements are ongoing with the newly established Presidential Transition Council (PTC) and the incoming administration, to drive the palliative program, which includes the need for buses among various considerations.

    Meanwhile the Federal Government has approved the sum of 10.9 billion naira for the supply and installation of information and communication technology components for the 2023 National population census scheduled to hold in May.

    This was part of the approvals by FEC today chaired by President Muhammadu Buhari.

    Details later…

  • Defence, Security sectors gulp 13.4% of 2023 budget – Finance Minister

    Defence, Security sectors gulp 13.4% of 2023 budget – Finance Minister

    The Defence and Security sectors have been allocated N2.98 trillion or 13.4 per cent of the 2023 budget.

    Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning, stated this during a Public Presentation and Breakdown of the Approved Federal Government of Nigeria, 2023 Budget, on Wednesday in Abuja.

    The amount, which includes the recurrent and capital expenditures, is provisioned for the military, police, intelligence and paramilitary.

    According to the Approved 2023 Federal Government of Nigeria Budget, the allocations are referred to as Critical Sectoral Allocations in the 2023 Budget.

    The second largest Allocation went to the Education Sector with N1.79 trillion, which represents 8.2 per cent of the federal government budget.

    The amount provisioned for the Federal Ministry of Education and its agencies, including recurrent and capital expenditure, is N972.93 billion.

    Also, the amount provisioned for Universal Basic Education Commission (UBEC) is N103.29 billion.

    Furthermore, transfers to the Tertiary Education Trust Fund (TETFUND) for infrastructure projects in tertiary institutions is N248.27 billion.

    Moreover, the amount provisioned for Tertiary Education Revitalisation and Salary Enhancement is N470 billion.

    Also, infrastructure was allocated N1.24 trillion, representing 5.7 per cent of the budget.

    This includes provisions for works and housing, power, transport, water resources and aviation sectors.

    The Health Sector, however, got N1.15 trillion, representing 5.3 per cent of the budget.

    The amount provisioned for the Ministry of Health and its agencies is N1.02 trillion.

    The amount includes recurrent and capital expenditure, and Hazard Allowance.

    Also, the sum of N76.99 billion was allocated to Gavi/Immunisation funds, including Counterpart Funding for Donor Supported Programmes, and Global Fund.

    Moreover, N51.64 billion was allocated as transfer to Basic Health Care Provision Fund (BHCPF).

    Furthermore, Social Development and Poverty Reduction Programmes were allocated N809.32 billion or 3.7 per cent of the budget.

    The amount was provisioned for Social Investments/Poverty Reduction Programmes.

    However, an aggregate sum of N967.5 billion was provided for statutory transfers in the 2023 budget, representing an increase of N223.38 billion over the Executive Budget Proposal.

    Meanwhile, the oil price benchmark is set at 75 dollars per barrel.

    According to the approved budget, in its assumptions, some of the parameters underlying the 2023 projections deviate from those in the National Development Plan (NDP) 2021 to 2025.

    They have been updated based on a combination of current realities and a modified medium-term outlook.

    Also, growth is expected to moderate to 3.30 per cent in 2024 before picking up to 3.46 per cent in 2025.

    The inflation rate is projected to be an average of 17.16 per cent in 2023, and the 14.93 per cent projected in the NDP for 2023.

  • REVEALED: How Much FG Targeted as GDP By 2050?

    REVEALED: How Much FG Targeted as GDP By 2050?

    The federal government has said it is targeting a Gross Domestic Product (GDP) of over $12 trillion and per capita income of $33,000 per annum by 2050.

    The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this yesterday in Abuja at the launch of the National Plan for Financing Safe Schools.

    She said, “With an average real GDP growth rate of seven per cent, a GDP of about $12trn by 2050 and an end period per capita income of $33,000 per annum is projected.

    “These lofty targets can only be actualised if all critical stakeholders collaboratively create safer teaching and learning environments across Nigeria via critical intervention investments as captured in the validated cost plans of action.”

    Ahmed further said the federal government made a commitment at a high-level meeting on financing safe schools in partnership with EEG in 2021 to facilitate adequate funding in protecting education from attacks.

    She said the commitments led to the development of the “National Plan”, adding that the plan would be implemented between 2023 and 2026 with a total investment size of N144.8bn.

  • Budget Padding: Senate, Ministers Battle Over 206bn

    Budget Padding: Senate, Ministers Battle Over 206bn

    The Minister of Humanitarian Affairs, Disaster Management, and Social Development, Sadiya Farouq, has disclosed that the Minister of Finance, Zainab Ahmed, added N206bn to the humanitarian ministry’s budget.

    Farouq, who appeared before the Senate Committee on Special Duties on Monday to defend the 2023 budget, revealed that the ministry requested some projects for the North East Development Commission and the National Social Safety Net Project in the 2022 budget, which were not released, but was surprised to see an inflated amount in the 2023 budget of the ministry.

    The budget defense was soured when Senator Elisha Abbo (APC Adamawa North) asked the minister about the inflated N206bn in the budget.

    The minister said, “Yes, we made mention of the projects for 2022 that were not released, and part of it was for the NEDC. 

    “The money was not released, and now that we have seen it recurring by almost 10-fold, we are also going to seek clarification from the Ministry of Finance to know why the increase occurred despite the fact that the previous year, the money requested wasn’t released for the projects. So, we will get the details and then send them to you.”

    Also on Thursday, the defence minister also told the senate that Ahmed inserted a total of 11bn into its 2023 budget; the minister of health also accused her of budget padding.

    Abbo, who expressed shock at the minister’s revelation, stated, “This is serious. We cannot continue to borrow money and plunge this country into debt for our children to come and pay without investing in what they will see.”

    The Chairman of the Committee, Senator Yusuf Yusuf, moved a motion to summon the finance minister to explain the N206bn inserted in the budget.

  • When Fuel Subsidy Regime Will End? By Finance Minister

    When Fuel Subsidy Regime Will End? By Finance Minister

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, says the Federal Government will do away with petroleum subsidy by June 2023.

    Ahmed said this on Tuesday in Abuja during a press conference to mark the end of the 28th National Economic Summit.

    The News Agency of Nigeria reports that fuel subsidy gulped N2.565tn between January and August 2022.

    Also, in the Medium-Term Expenditure Framework, the Federal Government proposed to spend N3.3tn on fuel subsidy between January and June 2023.

    According to Ahmed, removal of fuel subsidy is part of the FG’s medium-term plan in the budget.

    She, however, said that the challenge was how to go about removing the subsidy.

    “First, we have to engage. We have already engaged with the states and the public before it was approved as part of the medium-term plan.

    “We have to do it by systematically informing the citizens about the size and the quantum of the fuel subsidy.

    “We also have to educate them about the opportunity cost of what we are unable to do because of the fuel subsidy,” she said.

    According to the minister, the fuel subsidy, in addition to budget deficit, is putting enormous pressure on the “fiscals”.

    “It is not money that we have; it is money that we have to borrow to maintain the fuel subsidy.

    “Some countries introduced subsidy during the COVID-19, and because of the Russia-Ukraine conflict, but they are using their money to fund such subsidy.

    “In our case, we are borrowing to pay the subsidy; that is double jeopardy. It is something that has to stop

    “We are glad that majority of people in decision-making positions, including the political parties, have agreed that subsidy is not sustainable.

    ”The plan is, by June 2023, we must have completely exited subsidy, and it has to be a gradual process,” she said.

  • FG Approves N470bn for University Revitalisation, Upwards Review of Lecturers’ Salary

    FG Approves N470bn for University Revitalisation, Upwards Review of Lecturers’ Salary

    The Federal Government of Nigeria has approved N470bn special fund in the 2023 budget for university revitalisation and upward review of lecturers’ salaries.

    The Minister of Finance, Zainab Ahmed, made this known at a briefing in Abuja on Wednesday, October 19.

    She explained that the sum was specially provided in the allocation to education for upward adjustment of salaries for university lecturers and revitalization of universities.

    N300 billion is for university revitalisation while N170 billion is for an upward review of university lecturers’ salaries, the Finance Minister said.

    According to her, the draft 2023 budget has been prepared on the background of international challenges such as the Russia-Ukraine war and COVID-19 pandemic, adding that revenue generation has been a major challenge to national development in the country.

    On the allocations for critical sectors, she said the sum of 2.05 trillion Naira is allocated to education and 1.58 trillion Naira for health.

    She added that 2.74 trillion Naira is allocated to defense and security, infrastructure got 998.9 billion Naira while social development and poverty reduction has 756 billion Naira.

    This comes following the suspension of the eight months strike by the Academic Staff Union of Universities (ASUU). The ASUU members went on strike over the upward review of lecturers’ welfare, amongst others.

  • N3.36tn Allocated For Fuel Subsidy In 2023 as Debt Profile Hits $102bn – Finance Minister

    N3.36tn Allocated For Fuel Subsidy In 2023 as Debt Profile Hits $102bn – Finance Minister

    The Federal Government says N3.36tn has been allocated for fuel subsidy in 2023 as Nigeria’s debt profile hits $102bn.

    The Minister of Finance, Zainab Ahmed, who made this known on Wednesday in Abuja, also said the 2023 budget proposal has a budget deficit of 10.78 trillion naira.

    She said this will be funded through domestic and multilateral borrowings and proceeds from privatisation.

    According to her, of Nigeria’s $102bn debt, 35% is foreign and 65% is domestic, adding that the current public debt is at 23% of the country’s gross domestic product.

    The minister also said the 2023 budget also factored in 17.16% inflation.

    According to her, the draft 2023 budget has been prepared on the background of international challenges such as the Russia-Ukraine war and COVID-19 pandemic, adding that revenue generation has been a major challenge to national development in the country.

    On the allocations for critical sectors, she said the sum of 2.05 trillion naira is allocated to education and 1.58 trillion naira for health.

    She added that 2.74 trillion naira is allocated to defense and security, infrastructure got 998.9 billion naira while social development and poverty reduction has 756 billion naira.

  • FG Propose N19.76trn Budget for 2023, Deficit at N12.41trn

    FG Propose N19.76trn Budget for 2023, Deficit at N12.41trn

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Monday said the government is proposing an aggregate expenditure of N19.76 trillion for the 2023 financial year.

    The minister, who made this known at the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) interaction with the House of Representatives Committee on Finance, however, said it may not be able to make provision for treasury funded capital projects in the 2023 fiscal year.

    Ahmed also said that the budget deficit for the 2023 fiscal year may run between N11.30 trillion and N12.41 trillion depending on the choice that will be made by the federal government on fuel subsidy payment.

    She stated that the government is projecting a total revenue of N8.46 trillion, out of which N1.9 trillion is expected to come from oil-related sources, while the remaining balance is to come from non-oil sources.

    Ahmed explained that crude oil price is pegged at $70 per barrel at the exchange rate of N435.57 per dollar, oil production is put at 1.69 million barrel per day, real Gross Domestic Product (GDP) growth is projected at 3.7%, while inflation is put at 17.16% in 2023.

    She said that petrol subsidy will remain up till mid-2023 based on the 18-month extension announced early 2021, in which case only N3.36 trillion will be provided for it in next financial year.

    The minister further said Nigeria has been able to consistently without fail, service her debt and the country do not have any projections even in the near future, to fail in that obligation.

    Ahmed said although the amount currently used in servicing debt in the country has overshot what was appropriated for in the budget, measures have been put in place to manage the situation.

    While lamenting that revenue generation remains the major fiscal constraint of the federation, she said efforts will however focus on improving tax administration and collection efficiency.

    She added that there will be tighter enforcement of the performance management framework for Government Owed Enterprises (GOEs) that will significantly increase operating surplus/dividend remittances in 2023.

    According to her, “The budget deficit is projected to be N11.30 trillion in 2023, up from N7.35 trillion in 2022. This represents 5.01% of the estimated GDP above the 3% threshold stipulated in the Fiscal Responsibility Act (FRA), 2007.

    “This deficit level assumes that petrol subsidy reform will be implemented from mid-2023 in line with the timeline for suspension thereof. The draft 2023-2025 MTEF/FSP has been prepared against the backdrop of continuing global challenges occasioned by lingering Covid-19 pandemic effects, as well as higher food and fuel prices due to the war in Ukraine.

    “Overall, fiscal risks are somewhat elevated, following weaker-than-expected domestic economic performance and structural issues in the domestic economy.

    “Crude oil production challenges and PMS subsidy deductions by NNPC constitute a significant threat to the achievement of our revenue growth targets; as seen in the 2022 performance up to April. Bold, decisive and urgent action is urgently required to address issues of revenue underperformance and expenditure efficiency at national & sub-national levels.

    “The Nigerian economy has, despite these challenges, sustained its recovery from recession for the 6th quotas. While Q1 2022 was 3.11 per cent, this has appreciated to 3.54 per cent in the second quarter of 2022. Most sectors of the economy record positive growth.”

  • FG’s N1.3trn electricity intervention fund didn’t produce significant result – Zainab Ahmed

    FG’s N1.3trn electricity intervention fund didn’t produce significant result – Zainab Ahmed

    Zainab Ahmed, minister of finance, budget and planning, says the N1.3 trillion intervention fund the federal government provided for the power sector has not yielded any significant result.

    On March 1, 2017, the federal government approved the sum of N701 billion as a power assurance guarantee fund for the Nigerian Bulk Electricity Trader (NBET) to pay for the electricity produced by the generation companies (GenCos) to the national grid for the period of two years.

    The fund was provided to tackle the monthly liquidity challenges faced by GenCos, as the distribution companies (DisCos) keep defaulting in paying for the monthly invoice of electricity received.

    In a letter to President Muhammadu Buhari dated November 19, 2021, Zainab Ahmed, minister of finance, detailed how funds can be raised through the sale of make-up gas to address the financial challenges in the sector.

    “The industry requires N85 billion per month to pay for gas, generation, transmission and distribution operations,” the minister wrote.

    “Recent intervention (between 2017-2019) towards addressing the power sector problem includes the 701 billion and 600 billion payment assurance facilities (PAFs) secure from Central Bank of Nigeria (CBN) to take care of some of the FG contingent liabilities within the sector and which have not yielded significant result.

    “Shortfalls caused by the large difference between allowed tariffs and what is required for cost recovery cost the FGN a total sum of N1.249 Billion between 2017 to 2019. These resources are more needed for human capital development and infrastructural investment. The above includes some projects like the World Bank loan (up to $3 billion) for tariff shortfall and the euro 2.6 billion for the presidential power initiative is considered to support Nigerian Electricity Supply Industries (NESI).”

    The minister also stated how Nigeria paid $137 million in two years for gas and electricity that were never used in the “take or pay deal” the country entered into with some investors in the power sector.

  • FG under Pressure Over Rising Foreign Debts — Finance Minister

    FG under Pressure Over Rising Foreign Debts — Finance Minister

    Public agitations against rising foreign debts have put pressure on the Federal Government to ensure prudent utilisation of foreign loans, even as it has set up a task force on disbursement on Donor-Funded Projects.

    Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, said this while addressing members of the federal legislature at a retreat in Lagos, yesterday.

    Her words: “It is public knowledge that there have been increased public agitations against rising foreign debts levels. This has put immense pressure on government to ensure prudent management of resources, improve transparency and accountability in the utilization of funds from donor agencies for maximum positive impact on the economy.”

    She said donor financing, especially from multilateral bodies such as the World Bank and the African Development Bank, was one of the critical sources of funds for the execution of key projects in the country, and noted that the nation was not receiving the best from the implementation of donor financed projects.

    She stated: “Notwithstanding the efforts and resources committed in procuring development financing for critical sectors of the economy to boost human capital development, improve infrastructure and service delivery as well as strengthen governance and institutions, the country appears not to have made the desired progress in this direction. Much still remains to be streamlined.

    “It is important to mention that when borrowed funds fail to be properly utilised, and to deliver on planned development objectives, growth is impaired and economic development is distorted.

    “An in-depth review of the level of implementation of the entire development projects reveals that delays in the execution of donor-funded projects stems from factors including bureaucratic bottlenecks, capacity challenges, political interference and challenges associated with obtaining varied and misaligned approvals processes between our local authorities and development partners.

    “Accordingly, Nigeria ranks low compared to other nations of the world in terms of the level of implementation of World Bank funded projects.”

    Task force on donor-funded projects

    The minister announced a task force on disbursement, in Donor-Funded Projects in Nigeria, to quicken the implementation of such projects.

    According to her, “the Term of Reference (ToR) of the task force is to evaluate, review and chart a fresh course to significantly increase disbursement levels in donor-financed projects in the country.

    “It is to also work with relevant stakeholders to facilitate various approval processes for donor-assisted projects before final approval from the National Assembly.”