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Squabbles not over! Nigeria kicks-off 2018 budget year, 6 months after

Nigeria on Wednesday had its 2018 appropriation bill, containing the year’s federal spending details as approved by the National Assembly, signed into law

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Nigeria on Wednesday had its 2018 appropriation bill, containing the year’s federal spending details as approved by the National Assembly, signed into law.

President Muhammadu Buhari gave legal teeth to the budget at the presidential villa in Abuja, the country’s capital city but not without a grumble.

The total budget is N9.1 trillion, up from the N8.6 trillion estimates he submitted to the Assembly on November 7, 2017.
The two chambers of the National Assembly passed the budget on May 16, six months after it was presented by the president.

Buhari expressed serious reservations over the treatment meted on the original budget proposal noting that the document had been ‘padded’ by the lawmakers. He said as follows:

“The National Assembly made cuts amounting to 347 billion Naira in the allocations to 4,700 projects submitted to them for consideration and introduced 6,403 projects of their own amounting to 578 billion Naira.

“Many of the projects cut are critical and may be difficult, if not impossible, to implement with the reduced allocation. Some of the new projects inserted by the National Assembly have not been properly conceptualized, designed and costed and will therefore be difficult to execute.

“The provisions for some nationally/regionally strategic infrastructure projects were cut by an aggregate of 11.5 billion Naira. Provisions for some ongoing critical infrastructure projects in the FCT, Abuja especially major arterial roads and the mass transit rail project, were cut by a total of 7.5 billion Naira.

“The provision for Rehabilitation and Additional Security Measures for the United Nations Building by the FCT, Abuja was cut by 3.9 billion Naira from 4 billion Naira to 100 million Naira; this will make it impossible for the Federal Government of Nigeria to fulfill its commitment to the United Nations on this project.

“The provisions for various Strategic Interventions in the health sector were cut by an aggregate amount of 7.45 billion Naira.

“The provision for security infrastructure in the 104 Unity Schools across the country were cut by 3 billion Naira at a time when securing our students against acts of terrorism ought to be a major concern of government.
“The provision for the Federal Government’s National Housing Programme was cut by 8.7 billion Naira.

“At a time when we are working with Labour to address compensation-related issues, a total of 5 billion Naira was cut from the provisions for Pension Redemption Fund and Public Service Wage Adjustment.

“The provisions for Export Expansion Grant (EEG) and Special Economic Zones/Industrial Parks were cut by a total of 14.5 billion Naira.

“The provision for Construction of the Terminal Building at Enugu Airport was cut from 2 billion Naira to 500 million Naira which will further delay the completion of this critical project.

“The Take-off Grant for the Maritime University in Delta State, a key strategic initiative of the Federal Government, was cut from 5 billion Naira to 3.4 billion Naira,” he said.

The President said about seventy new road projects have been inserted into the budget of the Federal Ministry of Power, Works and Housing.

“In doing so, the National Assembly applied some of the additional funds expected from the upward review of the oil price benchmark to the Ministry’s vote. Regrettably, however, in order to make provision for some of the new roads, the amounts allocated to some strategic major roads have been cut by the National Assembly,”

However, in a quick reaction, the lawmakers through Bala Na’ Allah, the deputy leader of the Senate who represented Senate President Bukola Saraki, and the Chief Whip of the House of Representatives, Alhassan Doguwa, who represented Speaker Yakubu Dogara, said the lawmakers had no option than to tinker with the budget estimates.

Mr Na’ Allah said their job as parliamentarians is a difficult one.
“The way the budget came, if we had allowed it to go that way, we would have been in trouble with those who elected us,” the lawmaker told journalists after the budget signing ceremony.
The senator also said they decided to alter the budget in order “to balance between the six geo political zones” across the country.

He said it is the “balancing efforts” by the National Assembly that led to the observations raised by Mr Buhari.

On his part, Mr Doguwa said “certainly you wouldn’t expect us to just rubber stamp and just bring it back. We have to do the nitty-gritty of budget consideration.”

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São Tomé and Principe to demand reparations from Portugal

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The education and cultural minister of Sao Tome and Principe, an African island nation, announced on Thursday that the government would like Portugal to make up for the moral harm done by colonization.

The Sao Tome and Principe administration will draft and open a new tab for a plan to discuss compensation with Portugal, Minister Isabel Abreu said in a statement to Portugal’s Lusa news agency, adding that the process would take time.

According to Abreu, the topic will be covered at Thursday’s cabinet meeting. The request follows Portugal’s President Marcelo Rebelo de Sousa’s assertion last week, when questioned by Reuters, that his nation was accountable for atrocities done during the colonial era and transatlantic slavery and that reparations were necessary.

His remarks provoked harsh criticism from right-wing parties and a national conversation. The centre-right Portuguese government, which holds administrative authority, declared that it will not start the process of making reparations payments, in contrast to Rebelo de Sousa’s remarks, which were conservative in the first place. Rather, it demanded reconciliation.

For more than 400 years, Portuguese ships abducted around 6 million Africans, forced them across the Atlantic, and sold them into slavery, mostly in Brazil.

Two weeks ago, United Nations High Commissioner for Human Rights Volker Turk said in an address at the closing of the four-day U.N. Permanent Forum on People of African Descent (PFPAD), called on countries to take real steps toward reparations for people of African descent. He appealed while adding his voice to calls for justice for the horrible crimes committed during slavery.

During the Portuguese colonial era, Portugal ruled over nations including Angola, Mozambique, Brazil, Cape Verde, Sao Tome and Principe, East Timor, and certain Asian provinces.

Also reacting to Rebelo de Sousa’s comments, Mozambique’s ambassador to the United Nations welcomed the remarks and said that confronting the past was “already reparatory” but that it “would be even better if we could go beyond that”.

Cape Verde’s President Jose Maria Neves said on Monday there was a need for discussions to “reach an understanding and consensus on these matters”.

Anielle Franco, Brazil’s Minister of Racial Equality, informed news outlet G1 that her staff was speaking with the Portuguese authorities about the matter.

Among other reasons, reparations opponents contend that modern states and organizations shouldn’t be held accountable for slavery in the past. Advocates argue that states today continue to profit from the wealth created by hundreds of years of labor without compensation, and that action is necessary to redress the legacy of slavery on underprivileged populations.

Although it is still hotly debated, the idea of making additional amends or paying reparations for transatlantic slavery has been gaining traction globally. Reparations were required, according to UN Secretary-General Antonio Guterres, last month to end “generations of discrimination”.

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Nigeria’s Dangote refinery set to get valid operating licence

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The Nigerian government has revealed that the 650,000 barrels per day Dangote Petroleum Refinery will soon receive a full operating licence.

This was declared during the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Stakeholders’ Consultation Forum on Midstream and Petroleum Host Community Development Trust Regulations in Abuja.

However, the federal government’s NMDPRA clarified that although it had given the $20 billion refinery a pre-commissioning license, the Dangote refinery would shortly receive a fully operational license.

Former President Muhammadu Buhari opened the Dangote refinery in May 2023. In April of this year, the plant began supplying automotive gas oil, sometimes known as diesel, to the domestic market. Premium Motor Spirit, or petrol, has not yet been released.

NMDPRA Chief Executive Farouk Ahmed assured industry participants and other stakeholders during his speech at the summit in Abuja on Tuesday that the refinery would receive a fully operational license from the authority very soon.

Ahmed noted that just three refineries now have legal licenses. Ogbugo Ukoha, Executive Director of distribution Systems, Storage and Retailing Infrastructure, NMDPRA, represented him.

“We have issued three refineries with three valid licences. We awarded to Dangote refinery even in their pre-commissioning and sooner than later they will have full commission and a valid licence also to operate,” he stated.

He added that more licenses are being processed for approximately 15 gas facilities nationwide, out of the total number. As per the NMDPRA chief, 1,199 downstream facilities have valid licenses, and over 176 operators are authorized to import gas.

According to the head of NMDPRA, over 176 operators have gas import permits, while 1,199 downstream facilities have valid licenses. As of 10 a.m. on April 30, 2024, NMDPRA had licensed 9,464 retail shops. He also stated that 130 depots and 69 coastal vessel licenses were in effect.

“In the gas processing facility within the midstream, there are about 15 of them with valid licences. And much is under processing.  If you go to the downstream sector, in the gas state of the downstream, more than 1,199 facilities have NMDPRA valid licences.

“More than 176 operators hold gas import permits. In the liquid licensing side of the downstream, there are 130 depots with valid licences and coastal vessels of more than 69 valid licences as of today. And in the retail outlets, we have 9,464 licensed retail outlets as of 10 am today, April 30,” Ahmed stated.

Nigeria is the largest oil producer in Africa, yet it frequently faces fuel shortages. It imports roughly 33 million litres of petroleum products per day and spent $23.3 billion last year. None of Nigeria’s publicly owned refineries has worked to capacity for years, despite several investments to revive them. The failure of both the previous and current governments has contributed to the high level of national anticipation surrounding the Dangote refinery.

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