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Tag: 2020 Budget

  • FG opens up on performance of year 2020 budget

    FG opens up on performance of year 2020 budget

    The federal government (FG) has opened up on the performance of the budget for the year 2020, saying it recorded 89 per cent release to Ministries Departments and Agencies (MDAs).

    The Minister of Finance, Budget and National Planning, Zainab Ahmed made this known on Monday at an interactive session with the leadership of National Assembly (NASS).

    According to the Minister, as at December 2020, the FG had made the release for the capital component of the 2020 budget, stressing the 89 per cent was occasioned by the release of N1.74 trillion.

    She also revealed that N118.37 billion was also released for COVID-19 capital expenditure from the fund.

    Ahmed said the Nigerian economy faced serious challenges in 2020, with the macroeconomic environment significantly disrupted by COVID-19 pandemic.

    She said the impact resulted in 65 per cent decline in projected net 2020 government revenues from oil and gas sector, which adversely affected foreign exchange inflows into the economy.

    On delayed release of funds to implement 2020 capital budget until March 31, the Minister said the complaint has receded.

    “I think the complaint was earlier in the year when we were trying to transfer the balances.

    “As far as I know in the past three weeks, I haven’t heard any such complaints and we have been able to address them.

    “But when we started the transfers, we couldn’t transfer to some agencies because of some limitations in the system, but we have since been able to transfer the capital component that is being utilised by the agencies budget to the system.”

    She, however, said the implementation of the MDAs projects was tied to procurement processes and capacity of the MDA.

    Ahmed said the extension of the 2020 capital budget implementation to March 31 had so far, recorded 30 per cent performance as at January.

    She, however, said that it was her expectation that the extension would record 100 per cent performance in March.

    She said it was the expectation of government that the capital budget implementation would enhance the nation’s economic recovery efforts and budget execution.

    She said the Federal Government was leveraging technology and automation, plugging fiscal drainers and ensuring more effective independent revenue monitoring.

    In his remarks, the Senate’s Chief Whip Sen. Orji-Uzor Kalu (APC Abia) commended the minister on capital performance of the 2020 budget.

    “I want to commend the minister and her team because this is the first time in the history of Nigeria that by Dec. 31, we are having 89 per cent performance expenditure of the budget.

    “It has never happened before, Last year was the very first.

    “The budget had been going 49 per cent, 27 per cent, this means from what the Senate President was asking, it means by March, we should be looking at implementing the budget 100 per cent,” he said.

    Earlier, President of the Senate, Ahmad Lawan said the meeting was to get an update on the capital implementation of the 2020 budget given its extension for implementation by the national assembly to March 31.

  • Unspent N4bn in our 2020 budget meant for recruitment – EFCC

    Unspent N4bn in our 2020 budget meant for recruitment – EFCC

    The Economic and Financial Crime Commission (EFCC) on Wednesday said that the N4 billion unspent in the 2020 budget was meant for recruitment of staff.
    TheNewsGuru.com, (TNG) reports the recruitment was stopped due to COVID-19 pandemic that ravaged the entire world at the beginning of the year.
    Mr Mohammed Umar, the Acting chairman of the commission said this on Wednesday in Abuja during its budget defence before the House committee on EFCC
    According to him, we were in the process of doing the recruitment when COVID-19 took over and that is why we have the N4 billion left unspent.
    He said that the EFCC had also made submission to the committee detailing assets recovery, conviction secured, cases in court among others by the commission.
    Umar listed some of the challenges faced by the EFCC to include: lack of special court to prosecute corruption cases, lack of personnel, poor release of fund for capital projects among others.
    He said that the issue of five per cent meant to be retained in the agency as part of money recovered had not been given to the commission as done in others places.
    “I don’t think the five per cent to be retained in EFCC for assets recovery has been approved because we have not gotten any money outside the budget approved,” he said.
    The acting chairman however proposed a total of N29.861 billion for 2021 operations.
    Umar said that EFCC had 15 offices in the country, adding that it could not captured some states because it was better to equip those already established.
    “It is better we equip the 15 offices than acquiring more because some are not adding values to our investigations, so we are thinking of closing them
    Rep Zakaria Nyampa (PDP-Adamawa) had queried why the EFCC had N4 billion unspent in the 2020 budget approved for the commission.
    ” Going through your document in 2020, I discovered there are N4 billion unspent money for personnel and N879 million unused under overhead, I don’t know what you are going to do with this,” he said.
    Meanwhile,, Rep Ibrahim Dutse, the chairman of the committee said it was ready to assist the EFCC to do it’s job, adding that any money voted for the commission must be released.
    He said that the committee would intervene in any challenges faced by the commission in respect to be able to discharge its duty effectively to the country.
  • Buhari opens up on provision for fuel subsidy in revised 2020 budget

    Buhari opens up on provision for fuel subsidy in revised 2020 budget

    President Muhammadu Buhari has said there is no provision for fuel subsidy in the revised 2020 budget.

    He said this is simply because the federal government cannot afford it, if reasonable provisions must be made for health, education and other social services.

    Buhari made this known in his address at the first year ministerial performance review retreat at the State House conference centre in Abuja.

    He said the Coronavirus disease (COVID-19) pandemic has led to a severe downturn in the funds available to finance the nation’s budget and that it has severely hampered capacity too.

    “One of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown, was the deregulation of the price of premium motor spirit (PMS) such that the benefit of lower prices at that time was passed to consumers. This was welcome by all and sundry.

    “The effect of deregulation though is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover we would see some increases in PMS prices. This is what has happened now. When global prices rose, it meant that the price of petrol locally will also go up.

    “There are several negative consequences if Government should even attempt to go back to the business of fixing or subsidizing PMS prices.

    “First of all, it would mean a return to the costly subsidy regime. Today we have 60% less revenues, we just cannot afford the cost.

    “The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.

    “Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices.

    “Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services. We now simply have no choice,” Buhari said.

    The President, nevertheless, assured Nigerians that the government is extremely mindful of the pains that higher prices mean at this time.

    “We do not take the sacrifices that all Nigerians have to make for granted. We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst.

    “We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by raising pump price arbitrarily.

    “This is the role that government must now play through the PPRA. This explains why the PPRA made the announcement a few days ago setting the range of price that must not be exceeded by marketers.

    “The advantage we now have is that anyone can bring in petroleum products and compete with marketers, that way the price of petrol will be keep coming down,” Buhari said.

  • NASS members resume on Thursday to consider revised 2020 budget

    NASS members resume on Thursday to consider revised 2020 budget

    The National Assembly members will tomorrow (Thursday) resume from their Eid-el-Fitri break to consider President Muhammadu Buhari’s Appropriation (Amendment) Bill 2020.

    Both Chambers of the National Assembly had on May 20 adjourned plenary till 2 June 2020.

    But on Tuesday, the Clerk of the National Assembly, Mohammed Sani-Omolori, in a statement in Abuja, said all Senators and members of the House of Representatives are expected to resume on Thursday, May 28 to reconsider the 2020 budget.

    The Senate President, Ahmad Lawan, had while adjourning plenary session last Tuesday, said that the Senate was prepared to cut short its break to consider any urgent communication from President Buhari, especially on the 2020 budget.

    The revised 2020 Budget was submitted to both Chambers of the National Assembly last week Wednesday.

    Senator Babajide Omoworare, SSA to President Buhari submitted the amended budget to the Senate.

    His counterpart in the House of Representatives, Umar Ibrahim El-Yakub, submitted the copy to the House.

  • Lagos reduces 2020 budget size by 21%

    Lagos reduces 2020 budget size by 21%

    Lagos State Executive Council has approved a reduction of the State’s 2020 Budget to N920.5 billion to help mitigate the economic and social headwinds precipitated by the coronavirus pandemic on the State.

    According to the State’s Commissioner for Economic Planning and Budget, Mr. Sam Egube, the review proposal aims to reduce the Budget to N920.5 billion as against the amount of ₦1.17 trillion hitherto approved by the State House of Assembly.

    The Lagos State House of Assembly had in December, 2020 passed N1.169 trillion Appropriation Bill for the State.

    The approved budget contained N457bn recurrent expenditure and capital of N711bn showing a strong preference for capital projects at 60%.

    Egube informed that the first quarter of 2020 recorded a budget performance of 56% (₦163.2Bn); which in absolute terms is higher than the 68% (₦148.3Bn) recorded for the same period in 2019.

    The Commissioner listed some of the factors that necessitated the review of the Y2020 budget to include fall in crude oil prices with deleterious effects on statutory allocation expectations, downward pressure of IGR, devaluation of the Naira, reduced public and private investment, Increased inflation, decline in demand for goods and services and reduction in manufacturing activities, which portends lower GDP growth and Increased unemployment.

    Egube stated that part of the State’s holistic approach to the COVID-19 shock already adopted by the state government going forward included maintaining a Strong Pandemic Response, Restarting the State Economy and Reimagining the way Lagos State operates

    He explained that with the Strong Pandemic Response, the state government will engender food security and safety net mechanism, economic stimulus, and ensure public safety and wellbeing.

    “To Restart the Economy, we are going to optimize the state’s budget for investments in jobs and priority sectors through job creation, economic stabilization and fiscal consolidation. While to Reimagine the State Economy, we will prepare the State to operate and thrive within the new reality with digitization, business environment reforms, improved economy and diversification of revenue sources” the Commissioner added.

    He gave the proposed breakdown of the revised budget as follows; the Total Budget Size is reduced by 21% from N1,168.562bn to N920.469bn with the Financing Deficit increasing slightly by 11% from N97.533bn to N108.005bn

    Recurrent Expenditure (Debt and Non-Debt) declines by 10% from the initial N457.529bn to N411.608bn and Total Capital Expenditure is reduced by 28% from N711.033 to N508.861

    The revised Total Revenue, according to Egube, represents a drop of 24% from the projected N1,107,029bn to N812.464bn

  • 2020 budget cut: Bonds will put Nigerians in bondage – Atiku

    Former Vice President Atiku Abubakar has said the 2020 budget cut by the federal government is unrealistic, stressing that Nigeria cannot make up for the loss of expected revenue by taking out more loans and issuing out more bonds.

    TheNewsGuru.com (TNG) reports Atiku, who made this known in a statement on Thursday, said debts will be the death of the Nigerian economy, and that bonds will put Nigerians in bondage.

    The presidential candidate of the Peoples’ Democratic Party (PDP) in the 2019 general elections stressed that the country cannot afford luxuries during the austerity brought about by the Coronavirus disease (COVID-19).

    Read Atiku’s statement below:

    It is to my consternation that despite the crash in the price of oil, and the inability of Nigeria to expand our revenue base through the non-oil sector, the Federal Government of Nigeria has only seen fit to slash our budget by a mere 0.6%, from ₦10.594 trillion to ₦ 10.523 trillion. This represents a reduction of only ₦71 billion.

    Putting politics aside, this is grossly insufficient and betrays the fact we have lost touch with the current realities in the global political economy.

    For the avoidance of doubt, when this budget was presented to the National Assembly on Tuesday, October 8, 2019, it was predicated on a projection that our nation would generate crude oil production of 2.18 million barrels a day, at an expected oil price of $57 per barrel.

    Today that is no longer the case. Both our production, and the price of oil have been severely affected by the coronavirus pandemic, to the extent that we have unsold vessels, and our income has tanked by more than 50%.

    Given that this is the case, how can anyone justify a reduction in expenditure of just 0.6%? We cannot be the only nation bucking the trend?

    Saudi Arabia, a nation with a much stronger production capacity than ours and with a larger global market share, as well as a foreign reserve that is 12 times ours, has slashed her budget by almost 30%. Ditto for other oil economies.

    Nigeria cannot make up for the loss of expected revenue by taking out more loans and issuing out more bonds. Debt will be the death of our economy, and bonds will put our people in bondage.

    The best way out of this economic quagmire is to reduce our expenditure. And a 0.6% reduction is no reduction. It is only window dressing.

    My counsel to the Federal Government of Nigeria is this: put Nigerians first and cut your coat, not according to your size, but according to your cloth.

    Realistically slash the budget. Every pork barrel has to go. The billions budgeted for the travels and feeding of the President and Vice President has to be reduced. The ₦27 billion budget for the renovation of the National Assembly has to go. The massive budgets to run both the Presidency and the Legislature has to be downsized. The budget for purchasing luxury cars for the President, his vice, and other political office holders must be abandoned. Leave the salaries of civil servants alone, but reduce the salaries of political appointees. Sell 8 or 9 of the jets in the Presidential Air Fleet.

    Any budget slash that is less than 25% will not be in the interest of Nigeria. And beyond a budget slash, Nigeria needs a budget realignment, to redirect expenditure away from running a massive bureaucracy, into social development sectors like education, infrastructure, and above all, healthcare. We must invest in the goose that lays the golden egg – the Nigerian people.

    These are the types of sacrifices that we need in a time of crisis. We do not need empty gestures that will lead to empty treasuries.

    In times of austerity, no nation, not the least a mono-product economy, such as ours, should be living in luxury at a leadership level.

  • FG slashes 2020 budget by N71.5b, approves N47.9b for projects

    FG slashes 2020 budget by N71.5b, approves N47.9b for projects

    The Federal Executive Council (FEC) has approved a revision of the 2020 Budget from N10.594 trillion to N10.523 trillion, reflecting a N71.5billion downward review.

    Minister of Finance Budget and National Planning, Mrs Zainab Ahmed, who stated this while briefing State House correspondents after the virtual FEC meeting at the State House yesterday, also said an amendment to the Medium Term Expenditure Framework(MTEF) for 2020-2022 was approved.

    President Muhammadu Buhari in December signed the N10.594 trillion Appropriation bill into law.

    The minister also explained that FEC also approved the recommendations with key parameters, including the price of crude oil pegged at $25 per barrel, crude oil production at 1.94 million barrels per day and an exchange rate of N360 to $1.

    She said: “This is because, as we cut down the size of the budget, we also have to bring in new expenditure previously not budgeted, to enable us adequately respond to the COVID-19 pandemic.

    “The Federal Government in this budget will have direct revenue of funding the budget of N5.158 billion. “The deficit to this budget N5.365 trillion and this will be financed by both domestic as well as foreign borrowing.

    “The foreign borrowing we are doing for 2020 are all concessionary loans from the IMF which has already been approved and has crystallized, from the World Bank, Islamic Development Bank as well as Afri- EXIM bank.

    “There will also be some drawdown of previously committed loans for major ongoing projects that we will be drawing from both existing facilities as well as some special accounts with the approval of Mr. President and the National Assembly. And also revenue that we are expecting to realize from privatisation.

    “So, the borrowing, the multilateral loans draw down coming from special accounts and coming from the privatization will fund the fiscal deficit of N5.365 trillion that we have in the proposed amendment of the 2020 budget.”

    She also said that the council approved the purchase of three locally-manufactured boats for the Nigeria Customs Service for its surveillance and anti-corruption activities on the maritime waters.

    Ahmed said that there was a push to patronize made in Nigeria goods because of the Coronavirus pandemic and also boost the economy.

    Her words: “On prioritization of made in Nigeria products, as you know the President(Muhammadu Buhari) has set up an economic stimulus committee chaired by the Vice President(Prof. Yemi Osibajo). The work of the committee is to develop 12 months economic stimulus plan and we are at the final stage of that work.

    “We have prioritised spending in that plan to use and consume made in Nigeria. For example some of the public works projects that will employ a lot of our youths is to be done using strictly our raw materials, so we don’t have to import bitumen for example to build our roads.

    “Some of the FEC memos that were taken given today have been in council waiting in the queue for a couple of months now. The one for transport is not new, it didn’t just come today and council felt it should go because it’s been there for a long time.

    “But, we have got approval from Mr. President that spending as much as possible should be made in Nigeria on goods and products that are produced in Nigeria, so that it saves our foreign exchange and also helps to grow the economy.”

    Also, the minister said the request of $80 million loan from the Islamic Development Bank on behalf of the Ebonyi State government was approved by FEC

    The Finance minister said that the money would be used to finance the construction of the Abakiliki ring road project.

    ”While the Federal Government is the one borrowing from the bank, Federal Government will be un-lending this loan to Ebonyi State government.

    “We have done our debts sustainability analysis that proves that Ebonyi state has the capacity to repay this loan which is provided on a basis of libel plus and also long tenure for repayment.

    ”This Ebonyi ring road connects 13 local government areas in the state as well as the neigbouring Cameroon Republic. It is a major road that will provide access to the citizens in the state, to farmers, markets and will enhance economic activities in the state. And the neigbouring states will also benefit from this project.”

    Also speaking at the briefing, the Minister of Agriculture and Rural Development, Alhaji Sabo Nanono, said that FEC approved a loan facility of $1.2 billion to finance the mechanisation of agriculture in the country. .

    He said the planned mechanisation of agriculture would span across 632 local government areas.

    Nanono added: ”Today, we presented a joint memo with the Federal Ministry of Finance in which we seek the approval for a loan facility of about 950 million Euros translated probably to $1.2 billion .

    ”This loan is for the purpose of agricultural mechanisation in this country –that will cover about 632 local government areas plus 140 processing plants.

    ”This is going to be a major revolution in the agriculture sector, that we have never seen before.’’

  • NFF to revise 2020 budget, cut down on competitions to attend

    NFF to revise 2020 budget, cut down on competitions to attend

    The Executive Committee of Nigeria Football Federation (NFF) on Friday met via video conferencing to deliberate on important issues in Nigerian football, according to a statement from the football body.

    The NFF Executive Committee, according to the meeting’s eight-point communique, resolved that the Federation should revise its budget for the year, among other stringent measures.

    “The Executive Committee mandated the General Secretary, Mohammed Sanusi, to within the next four weeks and armed with the realistic projections derivable from the meetings with the partners/sponsors and equipped with new figures from probable subvention from Government and expected grants from the Confederation of African Football (CAF) and world governing body FIFA, submit to the Board a revised budget for the Federation for the year.’’

    The communique made available to the News Agency of Nigeria (NAN) stated that the revised budget would “form the new working document/financial estimate to be submitted to the NFF Congress for approval at a virtual meeting within the next five weeks’’.

    “It will guide the operations of the NFF for the remaining part of the year. Extensive sensitisation and mobilisation of stakeholders in the football family will be done for everyone to understand, align with and ingest the new workplan.’’

    The NFF Executive Committee also agreed that the Federation, in line with these new realities, would “prioritise programmes, activities and competitions in which to partake, with the engagement of the senior teams being the fulcrum’’.

    The communique stated that the NFF President, Amaju Pinnick, and Sanusi have been mandated to cut down expenses in the running of the Federation from all areas possible and enforce belt-tightening measures.

    “This is to ensure the Federation operates only within the framework of guaranteed revenue.’’

    The NFF Executive Committee further set up an ad-hoc committee headed by its President to interface with the Federation’s partners and sponsors in the next weeks.

    “This is with a view to appraising, balancing and optimising the relationship each way with a model that will take care of the interest of all parties within the realities on ground.

    “We took this decision in deep appreciation of the realities that are bound to unfold after the COVID-19 pandemic and the resumption of football activities, and the various scenarios possible in the circumstances.’’

    According to the communique, the NFF Executive Committee also received and endorsed the report of a virtual meeting of the League Management Company (LMC) and the Nigeria Professional Football League (NPFL) clubs.

    The News Agency of Nigeria (NAN) reports that the LMC/NPFL clubs’ meeting was held on Thursday.

    Decisions taken included a commitment to conclude the League season after the COVID-19 and resumption of football activities, and consider the most plausible format for conclusion of the remaining games.

    The meeting also agreed to continue to communicate with the clubs and ensure commitment by the clubs to continuous payment of the salaries of their players, coaches and backroom staff under the current circumstances.

    They are to arrange testing for all players, coaches and backroom staff (about 1,200 persons in all) before the commencement of matches, with the support of the Federal Ministry of Health and the Nigeria Centre for Disease Control (NCDC).

    Also, they are to await realities thence to determine whether matches will be played with crowds or not immediately after the restart.

    Furthermore, they are to give priority to privately-funded clubs for special funds if the LMC secures any exceptional support, and “ensure that the LMC and NPFL continue to cogitate on the best way forward for the game this season and coming seasons.’’

    The NFF communique indicated also that Chairmen of the Nigeria National League (NNL), Nigeria Women Football League (NWFL) and Nationwide League One (NLO) also presented their projections.

    “All the three leagues are prepared to adjust their programmes to align with the six to eight weeks window agreed with at a virtual meeting of the NFF Executive Committee and the Minister of Youth and Sports Development, Sunday Dare, on April 16.’’

    The NFF Executive Committee also mandated its President to meet with the Federation’s Official Optimum Partner, AITEO.

    “This is specially to discuss matters involving the AITEO Cup 2020 competition and payment of coaches’ salaries.

    “The NFF will create windows for the various stages of the AITEO Cup competition to run its full course in order for Nigeria to register her representatives for next season’s CAF Confederation Cup competition.’’

    The NFF then assured that the NFF/Zenith Bank Future Eagles Championship, whose state competitions have already been concluded and some zones having also completed their competitions would run its full course.

    It said this would be immediately after the COVID-19 and resumption of football activities.

    The NFF Executive Committee further assessed a report by the General Secretary on the recent visit of the FIFA West Zone B Coordinator to Nigeria in respect of its FIFA Forward Project.

    “The Committee approved the commencement of construction of new projects in Delta and Kebbi, renewed attention to the abandoned project in Bauchi and the renovation of the Goal Project inside the Moshood Abiola National Stadium Complex in Abuja, complete with a new pitch and pavillion.’’

    NAN reports that the NFF Executive Committee meeting involved Pinnick, the Federation’s two Vice-Presidents, Sanusi and eight other Committee members, with Yusuf Ahmed and Musa Duhu unavailable.

  • COVID-19 Pandemic: Sokoto waives fees on water supply, reduces 2020 Budget by 25%

    The Sokoto State Government has cut its 2020 financial appropriations from N202 billion to 153 billion and waived fees on water supply to the residents for two months to cushion the effects of the Coronavirus pandemic.

    The Commissioner for Finance, Alhaji Abdussamad Dasuki, who made the disclosure on Friday, said the decisions were reached at the State Executive Council’s meeting on Thursday.

    According to him, he said the review of the 2020 budget was necessary in recognition of the financial downflow experienced as the result of coronavirus pandemic which is a burning issue across the world.

    “Sokoto will not be an exception, therefore, the government must look at the necessities and apply realistic measures in the situation.

    “The budget was reviewed to 25 per cent downward and it will affect all the Ministries and Departments allocations as well as other projects,” Dasuki said in a statement.

    He said that the council had revoked the contract for the construction of the Deputy Governor’s residence which was awarded to Abarma Nigeria Ltd.

    “The contract was awarded in the last two years at the cost of N484 million and the contractor was mobilised with N285 million and absconded from the job,” the commissioner said in a statement by Malam Muhammad Bello, the Special Adviser to Gov. Aminu Tambuwal of Sokoto State.

    Dasuki said that the contract was at 35 per cent execution stage and ministries of finance along with justice were mandated to ensure requisite action on the project.

    He said that the state executive council have adopted a committee finding and resolution on sharing of state tertiary institutions’ internally generated revenues of 60 per cent to the institutions, while 40 per cent goes to the state government coffers.

    According to him, the decision was reached over financial misappropriation observed from the institution’s activities.

    The commissioner explained that the decision was aimed at ensuring transparency.

    He said that the state government would continue to play its part on running the institutions.

    Also, the Commissioner for Water Resources, Mr Umar Bature, said the council approved the waiver on the collection of water supply levies for civil servants and other members of the public for March and April in view of the effects of Coronavirus pandemic.

    The Commissioner for Health, Dr Ali Inname, said the council had approved the payment of 100 per cent hazard allowance to all health workers in the state.

    Inname said health workers on Coronavirus pandemic duty would also obtain their weekly allowances, noting that the payments would be in bulk for two months aimed at boosting their morale for increased dedication.

    According to him, those on weekly allowance were on frontline assignments on containing Coronavirus such as those screening people at border checkpoints, working at isolation centres and directly in the task force committees.

    He said that the council had also approved the inclusion of 23 local government areas of the state on the execution of International Diagnostic Center which was initially handled by the government alone.

    The Commissioner for Information, Alhaji Bajini Galadanchi, said the council approved for the valuation and payment of permanent structures to be affected by ongoing dualization of Illela-More road in the Sokoto metropolis.

  • COVID-19: Lagos mulls re-ordering of 2020 Budget

    COVID-19: Lagos mulls re-ordering of 2020 Budget

    The Lagos State Government has reeled out strategies being put in place to cushion the effects of COVID-19 as the pandemic takes its toll on the economy and residents across the State.

    Speaking at an Inter-ministerial Briefing to update the media about palliatives by the government, the Commissioner for Economic Planning and Budget, Mr. Sam Egube hinted that the administration will consider reordering the N1.17 trillion budget for 2020 to channel funds into ventures that will generate quick employment and resources for Lagosians.

    The media briefing, which was held at the JTT Park in Alausa, was organised by the State government to enable Commissioners directly involved in the intervention programmes of Lagos State government provide updates on the activities aimed at reducing the effects of the pandemic on the populace.

    Egube said the ravaging pandemic had slowed down the growth of the State’s economy, shut down industrial production and distorted the supply chain of essential items, thereby heightening the fear of food insecurity among residents.

    Assuring that the Lagos Government has started responding to the concerns of citizens, Egube said, “We have started to put together post-COVID-19 response and stimulation plan to ensure our business continuity plan is riding after Coronavirus. We are going to look at enterprise; that is, Small and Medium Scale businesses that have the capacity to generate quick revenue and employment. All these economic stimulus packages will be rolled out when we have clarity on the slowdown of the spread of Coronavirus in the State”.

    Egube said “We will be looking at the construction sector and agriculture, empowering of people with vocational knowledge and skills. We believe these investments will stimulate growth and set the economy of the State on a powerful rebound for more prosperity.”

    While pointing out that the outbreak of the COVID-19 pandemic had reinforced the need to draw up the database of people living in the State, Egube advised residents to enroll with Lagos State Residents Registration Agency (LASRRA) to enable the government update its database of residents for emergency planning and budgeting.

    In his own contribution, the Commissioner for Finance, Dr. Rabiu Olowo, said the national economy felt the impact of the twin-shock occasioned by the falling prices of oil in the international market and freezing of revenue due to the COVID-19 pandemic.

    Olowo disclosed that the State Government had granted three months moratorium on accrued principal and interest payment on loans granted to Small and Medium Enterprises (SMEs) and Entrepreneurs by Lagos State Employment Trust Funds (LSETF).

    “Those who have loans currently running with the LSETF have been given three months moratorium by the State Government for principals and interests to ensure that these small businesses that generated jobs are not hit by crisis.

    “We will also be raising the capacity of LSETF to support the SMEs with capital that will act as a shock absorber and give necessary incentives to enable them mitigate the impacts. This plan is for a period after the battle would have been won against COVID-19,” Oluwo explained.

    Admitting that the State revenue had been greatly affected by under-performance of businesses occasioned by the lockdown, Olowo said it would be premature to evaluate the State’s loss at the present time.

    The Finance Commissioner also stated the Government had apportioned all donations it received from private sector and Federal Government transparently, stressing that all funds received in support of Coronavirus will be fully accounted for.

    Also briefing the media on activities of the Ministry of Agriculture, the Commissioner, Prince Gbolahan Lawal, noted that Lagos Government was proactive with the introduction of its Stimulus Food Relief Programme for the vulnerable people in the State, which will cater for 200,000 families in the first tranche.

    Dismissing misinformation about the scheme, Lawal explained that the State engaged Community Development Associations (CDAs) to distribute the food items, and not politicians or Local Government Chairmen.

    He confirmed that the second phase of the food scheme took off early Thursday to reach aged beneficiaries registered with LASRRA, adding that irregularities observed in the first phase had been addressed.

    Lawal said the State Government had created direct jobs for 600 individuals employed in centres where the relief package items were produced, asserting that the economies of other States were boosted as their farmers supplied produce packaged for distribution to the aged, vulnerable and physically-challenged.

    In his address, Commissioner for the Environment, Mr. Tunji Bello stated that agencies under the purview of the Ministry, especially LAWMA, was mandated to ensure the evacuation of waste across the State during the lockdown.

    “We ensured that PSP operators go around Lagos to prevent the accumulation of waste within the metropolis during the lockdown and ensure the environment is kept clean and healthy,” Bello said.

    He maintained that despite the fumigation being undertaken across local governments and some bus stops within the State, plans are in place for massive disinfection of all the highways across the State.

    Bello also affirmed that the cleaning of all drainage channels in Lagos is ongoing to take advantage of the dry season before the rainy season commences fully.

    The media briefing is the first in the series of activities lined up by Lagos State Government to keep residents abreast of its programmes and initiatives aimed at combating the COVID-19 pandemic.