Tag: Finance Minister

Reps summon finance minister, power, BPE others over planned sale of power plants

The House of Representatives has summoned the Ministers of Finance, budget and National Planning, the Minister of Power, over the planned sale of five power plants belonging to the three tiers of government.

Others summoned are the Director General for the Bureau for Public Enterprise (BPE), and the Managing Directors of the Niger Delta Power Holding Company and Nigeria Bulk Electricity Trading Company.

In letters to the agencies and made available to newsmen on Sunday in Abuja, the Chairman, House Committee on Finance, Rep. James Abiodun Faleke, said the process for the sale was unconstitutional.

He added that it was also a disservice to the nation’s development and sharing equity among the three tiers of government.

The letters read in part: “the House of Representatives has observed with grave concern the proposed sale of the 5 National Integrated Power Plants (NIPP).”

They are Benin Generation Company Ltd, Calabar Generation Company Ltd, Geregu Generation Company Ltd, Olorunsogo Generation Company Ltd and Omotoso Generation Company Ltd. proposed by the Bureau for Public Enterprise (BPE).

According to him, this was without due regard to constitutional principles and economic policy that informed the establishment of those power plants.

He decried the proposed sale as unconstitutional and a disservice to all known principles of national development and the sharing equity among the three tiers of government.

“Considering the critical role your agency is playing in sustainable energy sector in the country, you are please requested to stop all further processes regarding this transaction.

“You are to submit the following information for the committee’s determination of the way forward.”

He said that the committee was demanding from the Nigeria Bulk Electricity Trading Company a breakdown of the capacity and monthly income of all the power plants.

He added that a full disclosure of all the power plants that had taken or paid agreements as well as electricity consumed and not consumed from inception should be included.

He also requested for information on all agreements with the power plants on take or pay basis, approvals needed by the Nigeria Bulk Electricity Trading Company Board, the Federal Executive Council and others

July 24, 2022
Reps Cttee summons Finance, Petroleum Ministers, others over state of refineries

The House of Representatives Ad hoc Committee investigating the state of refineries in the county, has summoned the Minister of State for Petroleum Resources to appear before the committee on Thursday, March 31.

The committee also summoned the Minister of Finance, Budget and National Planning, the Group Managing Director of Nigerian National Petroleum Corporation (NNPC) among other government officials.

The Chairman of the committee, Rep. Johnson Ganiyu (APC-Lagos) gave the ruling on Thursday at an investigative hearing in Abuja.

He said the summon became necessary following the failure of the ministers and the other invited government officials to honour earlier invitation.

The lawmaker said that the committee was giving the officials another opportunity to willingly appear and give account of their stewardship of the nation’s refineries.

Other top government officials expected to appear include the Accountant General of the Federation, Auditor General of the Federation and the Director General, Budget Office of the Federation.

The Central Bank of Nigeria (CBN) Governor, the Chief Executive, Nigerian Upstream Petroleum Regulalory Commission and the Chief Executive, Nigerian Midstream and Downstream Petroleum Authority are expected to appear.

The Managing Director, Port Harcourt Reﬁning Company Limited (PHRC), the Managing Director, Kaduna Reﬁning and Petuchemical Company Limited (KRPC) and the Managing Director, Kaduna Reﬁning and Petrochemical Company Limited (KRPC) are to cause appearance too.

Other are, the Statistician General, National Bureau of Shﬁsﬁs (NBS), Executive Secretary, Nigeria Extractive Industries Transparency Initiative among others.

March 24, 2022
Buhari mourns ex-Finance Minister, Chu Okongwu

President Muhammadu Buhari has extended heartfelt condolences to the Okongwu family on the passing of the foremost economist and former Minister of Finance, Prof Chu Okongwu.

The president, in a condolence message issued by his media aide, Mr Femi Adesina, on Wednesday in Abuja, joined family, friends and associates in paying tribute to a man of many parts.

According to him, late Okongwu never hesitated to give his best to Nigeria as a broadcaster with the Nigerian Broadcasting Service, sub-editor, Lecturer, University of Nigeria and a Federal Minister of National Planning and later Finance.

The president believed that the perspectives the late Professor brought to governance and economics, which centered on improving the lives of Nigerians, would not be forgotten.

He prayed for the repose of the soul of the departed and divine comfort for his family during this difficult time.

The former minister died n Wednesday at the age of 87.

January 13, 2022
Babangida mourns former Minister, Chu Okongwu, says his death is a painful pang

Former Military President, Ibrahim Babangida has expressed shock over the passage of his Minister Finance, Chu Okongwu a reknowned economist.

The former Nigerian leader in a statement he personally signed on Wednesday said:

“The nostalgic feelings invoke in us grief and some sort of emotional torture. Death, the ultimate end of man has its hurtful claws clutching at humanity, each time it strikes.

“The death of Chu Okongwu, even at age 87, leaves me with a painful pang. Chu, was one Nigerian, who was devoted and committed to nation building, using his expertise and rich knowledge to create templates for national development. When our paths crossed, his intellect and humane disposition to discourse, swayed my attention.

“He was incisive and analytical in his deliberations. He was profound in his elocution and didactic in his delivery.

Read full statement below:

PRESS STATEMENT.

CHU OKONGWU: DEATH, BUT WHY?

No matter how old, when dear ones depart from us, we feel a deep sense of loss and pain. The nostalgic feelings invoke in us grief and some sort of emotional torture. Death, the ultimate end of man has its hurtful claws clutching at humanity, each time it strikes. The death of Chu Okongwu, even at age 87, leaves me with a painful pang. Chu, was one Nigerian, who was devoted and committed to nation building, using his expertise and rich knowledge to create templates for national development. When our paths crossed, his intellect and humane disposition to discourse, swayed my attention. He was incisive and analytical in his deliberations. He was profound in his elocution and didactic in his delivery.

Nigeria has lost another brilliant and intellectually fecund professional, with an amazing understanding of the world around us. A super economist, Harvard trained, and also a lecturer with a deep knowledge of economics, Chu Okongwu was an exceptional brain that helped to shape the direction of our government. As a Minister of National Planning, he helped to create policy implementation strategies that facilitated our achievements in government. He later became Minister of Finance for four years and was able to lead us on the path of financial discipline and accountability. Chu Okongwu was a very strict professional and public servant. He was meticulous, and had eyes for little details. He enjoyed intellectual engagement and had specific interest in interrogating figures. He was one of our reservoirs of knowledge on economic and financial issues.

At 87, Chu, was still in his usual elements until the sad news of his death struck me early this morning. It is painful for me that death has snatched away one of the brightest economists we have in Nigeria. A very exposed leader of men, whose love for Nigeria knows no bounds, Chu will be sorely missed.

May God in His infinite mercy grant him eternal rest. May He grant the family the grace and piety to bear this irreplaceable death. Chu was a great man, and he died like all great men do. Rest in peace, Sunday Chu Okongwu.

Signed….
GENERAL IBRAHIM. B. BABANGIDA, GCFR.
FORMER MILITARY PRESIDENT,
UPHILL,.MINNA
NIGER STATE.

January 12, 2022
Tax on carbonated drinks to increase in 2022-Finance minister

The Minister of Finance, Budget and National Planning, Zainab Ahmed has said a possible upsurge in the taxation on carbonated drinks, which would lead to a price increase.

She said this at the Public Presentation and Breakdown of the Highlights of the 2022 Appropriation Bill on Friday in Abuja, saying that it will be part of the additions in the 2021 Finance Act which will take effect from January 2022.

She said, “To further enhance independent revenue generation, government aims to optimise the operational efficiencies and revenue generation focus of the government-owned enterprises.

“The introduction of new and further increases in existing pro-health taxes for example exercise duties on carbonated drinks- this is work in progress but it will happen in the 2021 Finance Act.”

In 2019 Ahmed said the government was firm on implementing the initiative at a World Bank/International Monetary Fund meetings in Washington DC, United States.

Ahmed also said that there would be penalties for government-owned enterprises that fail to meet the set target in achieving the government’s revenue generation drive.

She said, “Government’s revenue performance and remittances will become enhanced through effective implementation of the performance Management Framework including possible sanctions should there be default on targets that are set for government-owned enterprises.

“The Finance Bill 2021 will contain measures that will further advance the implementation of the Strategic Revenue Growth Initiative (SRGI).”

October 9, 2021
Insecurity: Finance Minister counters claims of underfunding, says Nigerian Army received N1.08tr in 28 months

The Nigerian Army got N1,008.84 trillion as budget releases between January 2019 and this year’s first quarter, Finance, Budget and National Planning Minister Hajiya Zainab Ahmed told the Senate on Tuesday.

Mrs. Ahmed made the revelation when she appeared before the Senator Mohammed Ali Ndume-led Senate Committee on Army.

Citing a letter from the Chief of Defence Staff last week, Ndume said the military authorities complained that they had a shortfall of over N50 billion as far as fund releases from the Finance ministry was concerned.

Ahmed, however, gave the breakdown of how her ministry disbursed N1,008.84 trillion to the Army in the past two years as follows: N129.69 billion (Capital Expenditure); N39.76 billion (Overhead Cost); N681.79 (Personnel Cost); and N157.6 billion (Special Releases).

She said that the ministry has been “responsible and responsive” in providing funds for the Nigerian Army.

Mrs. Ahmed said: “The Ministry of Finance and National Planning, and indeed, the President, priorities are given to funding for the Armed of Forces of Nigeria.

“Apart from the fact that we try best efforts to fund what is provided for in the budget by almost 100 per cent, there has also been a lot of instances where the security service go to the President, get special approvals and we still provide funds.

“So, perhaps what we are providing is not enough, but the fact is we provide what is budgeted and we provide what is approved.

“Maybe, the thing to do in the meantime is to take stock of the real needs of the Nigerian Army. You have an opportunity in the supplementary budget that is coming in so that we can address some of that.”

On capital funding, the Minister said: “In 2019, what was budgeted for the Nigerian Army was N19.6 billion, adding that N12.84 billion was released, representing 64.37 per cent.

“In 2020, the total capital budget for the Nigerian Army was N34.37 billion and this amount was released 100 per cent.

“In 2021 (that is this current year), the total budget for the Nigerian Army is N29 billion as at April. We have released N17.98 billion of that, which is 68.92 per cent. It means we are on course to also release 100 per cent.

“There was an outside-of-budget spending because the need was higher than what was provided for in the budget. There was a total provision of N64.5 billion for procurement of military equipment that was provided for through special approval of Mr. President.

“In terms of overhead cost, in 2019, what was budgeted as was N15.64 billion out of which we released N14.299 billion representing 91.01 per cent.

“In 2020, what was budgeted for overhead was N20.634 billion and N20.471 billion was released, representing 99.21 per cent.

“In 2021, which is the current year, the total budget for the year is N20.63 billion and three months releases that we have done so far on overhead totaling N4.99 billion representing 96.75 per cent of the prorated budget for the three months because the year is still running.”

On personnel cost, she said: “In 2019, what was budgeted as Personnel Cost for the Nigerian Army was N192.155 billion but because of the adjustment that we have had to make for the minimum wage, the releases was 122.91 per cent over the budget at N237.42 billion.

“Apart from the releases that were directly done in the budget by adjustment for the minimum wage, there was also an additional release of N45.195 billion from the Public Service wide adjustment also meant to be augmentation of salaries due to the shortfall in the budget.”

May 5, 2021
Tanzanian president picks Finance Minister Mpango as VP

Tanzanian President Samia Suluhu Hassan on Tuesday appointed Minister for Finance and Planning Philip Mpango as the country’s Vice-President.

The appointment of Mpango as Vice-President was unanimously approved by the parliament sitting in the capital Dodoma.

Speaker of the National Assembly Job Ndugai announced that Mpango got 363 votes from all the Members of Parliament who were present in the House chamber.

Speaking shortly before parliament endorsed him, Mpango said the best way to honor the late President Magufuli was to oversee what he had stood for, including sound management of the country’s resources and implementation of flagship projects.

“I am from a poor family and my task ahead will be fighting for the rights of poor people in this country,” said Mpango.

He said another task ahead will be to ensure that Tanzania moved from the lower-middle-income status it attained in 2020 to the higher-middle income class within a short period of time.

“This is possible if Tanzanians decide to do so,” said Mpango to thunderous applause from the over 300 lawmakers in the House chamber.

Mpango was appointed Minister for Finance and Planning in 2016.

He was born on July 14, 1957.

March 30, 2021
Senate summons Finance Minister, CBN, EFCC, ICPC, others

The Senate on Wednesday summoned the Minister of Finance, Budget and National Planning, Zainab Ahmed, to brief it on measures put in place to curb revenue leakages through tax evasion and money laundering activities by international oil companies (IOCs), proceeds of corruption and other criminal activities involving illicit financial flows.

Also to appear before the Senate Committees on Finance, Anti-Corruption and Financial Crimes; Banking, Insurance and other Financial Institutions, are the the Heads of the Federal Inland Revenue Service (FIRS); Economic and Financial Crimes Commission (EFCC); Central Bank of Nigeria (CBN) and the Independent Corrupt Practices Commission (ICPC).

Also invited are the Heads of the Nigerian Financial Intelligence Unit (NFIU); the Nigerian Export-Import Bank (NEXIM) and the Nigerian National Petroleum Corporation (NNPC), among other relevant institutions.

The Upper Chamber also called for an appraisal of the FIRS’ current framework for tracing, identifying, preventing and sanctioning cross-border tax evasion and other illicit financial outflows.

The lawmakers also mandated its designated Committees to come up with a “holistic legislative framework on how to repatriate lost revenue due to illicit financial flows, mitigate such future unabated flows and provide an efficiency strategy for the reinvestment of repatriated resources into the Nigerian economy.”

These resolutions of the Senate followed a motion titled: “The need to review the domestic legal framework against illicit Financial Flows and to consider the creation of a Tax Amnesty for the voluntary repatriation of funds to Nigeria.”

It was sponsored by the Chairman Senate Committee on FERMA, Senator Gershom Bassey (PDP – Cross River South).

Bassey in his lead debate cited a 2014 Global Financial Integrity Report said, “Nigeria lost a minimum of US$140 billion to illicit financial flows between 2000 and 2014, mainly to crude oil and commercial activities mis-pricing.”

According to the lawmaker, “this economic loss to the country was not abated, as Nigeria was ranked among the global top 30 countries of illicit financial outflows by dollar value, with US$8.3 billion in illicit outflow from Nigeria in 2015.”

Bassey expressed worry at further findings by the Tax Justice Network and the International Monetary Fund which claimed “that developing countries, including Nigeria, have lost over US$200 billion per year to illicit financial flows as multinational corporations neglect, fail and/or refuse to pay taxes in these countries where they generate substantial amounts of profit.”

“Nigeria loses approximately US15billion annually to offshore tax evasion. This has resulted in a consistently low tax revenue as a percentage of Gross Domestic Product (GDP), as low as 5.7 percent in 2017.

“Such statistics are alarming, especially when compared to the 17.2 per cent average of 26 African countries in the same year”, Bassey said.

He added: “This incessant financial drain on the Nigerian economy continues to have negative implications for domestic resource mobilization and long-term economic growth and development.”

“IFFs continue to pose serious obstacles to development, as approximately five percent of the IFFs from Africa can be attributed to corruption, while 95 percent of IFFs come commercial and criminal activities.

“These unrecorded and untaxed Cross-border transfers, could have been mobilized as part of government revenue and injected into Nigeria’s formal economy towards sustained development and economic growth”, the lawmaker noted.

Bassey expressed concern that “statistics show that the amount of revenue lost annually by Nigeria is more than the sums provided as development aid.”

“For example, the net official development aid received by Nigeria in 2017 was US$3,358,790,000. Additionally, the United States Agency for International Development (USAID) has donated over US$526.7 million in humanitarian assistance to Nigeria and the Lake Chad Basin, since 2017. Neither of the above figures match the estimated US$15 and US$18 billion Nigeria loses to IFFs annually”, Bassey added.

The lawmaker lamented that though Nigeria has at least 12 institutions and agencies responsible for tackling illicit financial flows (IFFs), the country “continues to be menaced by weak regulatory structures and the complicity of other financial secrecy jurisdictions, among others.”

He added that global awareness has prompted governments across the world to develop measures and policies aimed at eradicating the perpetuation of illicit financial flows (IFFs), such as the Organization for Economic Co-operation and Development (OECD) Common Reporting Standard (CRS).

Bassey stressed that with the domestication and implementation of such international legal framework, Nigeria stands to curb future revenue losses due to tax evasion.

July 1, 2020
Court voids Finance Minister’s power to amend Taxes, Levies Act

A Federal High Court sitting in Lagos Wednesday voided the Minister of Finance’s power to amend the Taxes and Levies (Approved List for Collection) Act 2004.

Justice Ayokunle Faji held that “any purported amendment” to the Act 2004 by the Minister, “is null, void and unconstitutional.”

The judge upheld the argument of The Registered Trustees of Hotel Owners and Managers Association that “only the National Assembly can amend laws. No other body can do so.”

The Attorney-General of the Federation and Minister of Finance were the defendants in the suit.

The Federal Government through the then Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, on May 26, 2015, amended the Schedule to the Act following pressure to harmonise taxes and levies payable in Nigeria.

The amendment introduced “a taxing power” to state governments over “inter alia: Hotels, Restaurants or event centres’ consumption tax, where applicable.”

But The Registered Trustees of Hotel Owners and Managers Association, whose members in Lagos State are charged with the responsibility of collecting consumption tax from its customers on behalf of the government, filed Suit No: FHC/UCS/1082/19, challenging the Minister’s action.

The judge agreed with plaintiff’s Counsel Mr Salihu Bello that, among others, the amendment “…affects the business of Plaintiff and its members particularly as regards payment of taxes.

“It affects them directly. It seems to me that they are entitled to challenge a law which seeks to determine the point of payment of tax as regards their business if they think that law is unconstitutional.”

The judge granted all the plaintiff’s four declarative reliefs.

Justice Faji held: “By virtue of Section 4 of the Constitution…the legislative powers of the Federal Republic of Nigeria are vested in the National Assembly
“The Minister of Finance, being a member of the executive arm of government, lacks the constitutional power legislative competence) to amend an Act of the National Assembly or any part thereof.

“Section 121 of the Taxes and Levies (Approved List for collection Act Cap T2 Laws of the Federation of Nigeria 2004 which vests the Minister of Finance with the power to amend the schedule to the Taxes and Levies Approved list for Collection) Act is inconsistent with the provisions of the Constitution…and therefore, unconstitutional, null and void.

“Any purported amendment to the taxes and levies (Approved List for collection Act Cap T2 Laws of the Federation of Nigeria 2004 by the Minister of Finance…including but not limited to the ones and Levies (Approved List for collection) Act (Amendment) Order, 2015 is illegal constitutional, null and void.”

June 10, 2020
Nigeria Suspends borrowing $22.7bn external loan, Finance Minister gives reasons

As the global economy continues to feel the effects of the coronavirus, the federal government has disclosed its plans to suspend the proposed borrowing $22.7 billion from external sources by President Muhammadu Buhari.

Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, made this announcement on Monday during this year’s International Conference on the Nigerian Commodities Market, organised by the Securities and Exchange Commission (SEC) in Abuja.

The minister stated that the government would not go ahead with the borrowing programme even if it fully secures the approval of the National Assembly due to present economic realities.

Recall that the Senate has passed the loan request, but the House of Representatives is yet to give President Buhari the authority to go ahead with the borrowing.

At the seminar yesterday, Mrs Ahmed explained that the decision to halt the development was taken because market indices do not support external borrowings at the moment.

“The parliament is still doing its work on the borrowing plan. One arm of the parliament has completed theirs and the other arm is still working and it is a process that is controlled by the parliament itself, so we are waiting.

“However, we are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get approval, we will defer it and watch the market and go out only when the timing is right,” the Minister said.

She also said that current reality in the world impacted by the coronavirus and also the Saudi-Russia oil price war has brought the federal government face to face with the need to diversify more into the non-oil sector of the economy.

“Several national plans, programmes and projects have been directed at diversifying the production and revenue structures of the economy,” she said.

She stressed that there was need to do more to boost production and expand the country’s exports base which is less vulnerable to external shocks and provides more opportunities to the country’s teeming population.

According to her, the federal government plans to prioritise expenditure in favour of major capital expenditures that would have greater impact, which would create job and visibility and also enhance the ease of doing business in the country.

The Minister further noted that expenditures that are not critical must be deferred to a later date when things become more normal.

The plan by President Muhammadu Buhari to borrow the $22.7 billion to support the country’s budget deficits had been met with a lot of criticisms and opposition from Nigerians, who opined that it would only worsen the country’s debt portfolio.

March 18, 2020