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Nigerian govt begins preparation for 2025 budget

Published

1 day ago

September 25, 2024

The Nigerian government has begun preparing the 2025 appropriation bill, warning ministries, departments, and organisations to submit only line items within their mandates.

The Budget Office Director-General, Tanimu Yakubu, announced this at a ceremony to begin GIFMIS budget preparation subsystem training for ministries, divisions, and agencies. It advised MDAs to prioritise initiatives that support the administration’s economic goals.

He said the training was part of attempts to sensitise the budgetary process to the national budget’s quality, a longstanding worry.

Stakeholders have long questioned the relevance, execution, and efficacy of our national budget, he said.

“Today’s training offers a critical opportunity for all ministries, departments and agencies to reflect on their roles in the budget process. Together, we can ensure that our budget proposals for 2025 are not only robust and focused but also aligned with our national priorities.”

He also exhorted all MDAs to submit projects that fall within the legal parameters of their responsibilities.

“I urge All MDAs to stay through to their mandates. Our executive budget proposals must be coherent and purpose-driven, embodying the government’s vision for security and development.

“You hold the vital responsibility of transforming government priorities into actionable programs and projects. I encourage you to meticulously review your submissions to ensure they align with the overarching goal to safeguard the essential economic functions of producing, distributing and consuming goods and services.”

This statement is made in light of the criticisms and dissatisfaction expressed by Nigerians regarding the careless addition of projects outside the main purview of government parastatals.

BudgIT’s service delivery promotion platform, Tracka, announced in 2023 that it had found over 687 projects totalling N112 billion that had been given to agencies that were not part of their mission.

Speaking about the terrible status of the nation’s economy, the DG said that the current administration is dealing with serious budgetary difficulties that are made worse by the coexisting problems of resource scarcity and insecurity, which impede our attempts to stop the economy’s downward spiral.

He continued by saying that one of the stages to creating a more effective budgetary system is to adopt the Government Integrated Financial Management Information System Budget Preparation Sub-System technology.

To lower the cost of doing business in Nigeria, he pledged to carry out measures that support effective resource allocation, alleviate multifaceted poverty, and improve our infrastructure.

“The GIFMIS Budget Preparation Subsystem Training Session provides us with an invaluable opportunity to acquire the tools and knowledge necessary to enhance our budgetary processes. This technology-driven system is designed to improve efficiency, eliminate bottlenecks, and promote accountability,” Yakubu concluded.

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FDI inflows in South Africa slows in Q2, central bank says

Published

6 hours ago

September 26, 2024

Ifeoluwa Dada

According to central bank figures released on Thursday, South Africa saw inflows of foreign direct investment of 16.6 billion rand ($965.87 million) in the second quarter of 2024, compared with 24.4 billion rand in the first.

In its Quarterly Bulletin, the South African Reserve Bank stated that a non-resident business’s increased equity investment in a domestic broadcasting company was the main driver of the inflows.

From April through June, portfolio investments had outflows of 20.1 billion rand, down from 52.0 billion rand during the first three months of this year.

Between April and June of 2024, the South African GDP expanded by 0.4%1. The majority of the economy’s impetus on the production (supply) side was driven by the finance, manufacturing, trade, and electricity, gas, and water supply businesses.

From the demand (expenditure) perspective, growth was positively impacted by government, household, and inventory accumulation.

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Exxon to invest $10 billion in Nigeria

Published

9 hours ago

September 26, 2024

Ifeoluwa Dada

According to a presidential spokesperson, Stanley Nkwocha, on Thursday, who cited business executives, Exxon Mobil Corp has proposed a $10 billion investment in offshore oil operations as part of a new investment push in Nigeria.

The investment was disclosed following talks between Vice President Kashim Shettima and Exxon’s Nigeria CEO, Shane Harris, on Wednesday in New York during the U.N. General Assembly.

Exxon intends to concentrate on advancing the $10 billion-plus Owo project, a substantial deep-water project.

Even though it agreed to sell its onshore assets to Seplat Energy for $1.3 billion, the company still intends to invest $2.5 billion a year to sustain its operations in Nigeria and increase oil output by 50,000 barrels per day (bpd) over the next few years.

Exxon and the Nigerian president’s office are collaborating closely “to secure favourable fiscal arrangements that will make this significant investment possible,” according to a statement from Harris.

An Exxon representative did not immediately answer a request for comment.

The majority of Nigeria’s foreign exchange earnings and government revenue come from the production of oil, which rose by 10.15% in the second quarter to an average of 1.41 million barrels per day from 1.22 million barrels per day the previous year.

However, even after enacting a law three years ago to reduce regulatory uncertainty and draw in investments, Africa’s biggest oil producer still faces difficulties in its oil sector, including widespread theft and sabotage.

“This potential investment by ExxonMobil aligns perfectly with President Bola Tinubu administration’s vision for a more investment-friendly Nigeria,” Shettima said. “We are committed to creating an enabling environment for such transformative projects.”