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Tag: Zainab Ahmed

  • FG plans to spend N19.76trn in 2023

    FG plans to spend N19.76trn in 2023

    The Federal Government is proposing to spend N19.76 trillion in 2023.

    Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, made the declaration in Abuja on Monday when she said the 2023 budget had a proposed deficit of N11.3 trillion.

    She was addressing a sitting of the House of Representatives Committee on Finance on the 2023-2025 Medium Term Expenditure Framework.

    Ahmed said government was projecting revenue of N8.46 trillion for 2023; N1.9 trillion of which would come from oil-related sources while the balance would come from non-oil sources.

    She said the budget would be premised on 70 dollars per barrel of crude oil and an exchange rate of N435.57 to the dollar.

    The minister said oil production for 2023 was pegged at 1.69 million barrel per day; a real GDP growth rate of 3.7 per cent and inflation rate of 17.16 per cent for the year.

    She hinted that petrol subsidy would remain up to mid-2023 sequel to the 18-month extension announced early in 2021.

    Ahmed added that N3.36 trillion would be provided to pay the subsidy in 2023.

    The minister also told the session that there would be tighter enforcement of performance management framework for Government-owned Enterprises that would significantly increase operating surplus/dividend remittances in 2023.

    Ahmed assured that there were no projections that Nigeria would default in her debt services in the nearest future.

    She assured also that while the amount currently used in debt servicing had overshot appropriation in the 2022 budget, systems had been put in place to manage the situation.

    “We planned that 60 per cent of revenue would be spent on debt servicing, but in some months, the ratio went up to 90 per cent.

    “We have been able to, consistently without fail, serviced our debt and we do not have any projections even in the near future that we will fail.

    “We actually follow the Medium Term Debt Management Strategy very strictly; the debts are not taken haphazardly and they are planned.

    “They are appropriated and then we borrow against appropriation,’’ she stressed.

    The minister acknowledged, however, that government was under pressure to manage debt servicing following the drop in revenue generation.

    She called on the National Assembly and on other stakeholders to join government to increase revenue performance.

    “We do have pressure in terms of the ratio because when revenue is underperforming, it means we have problems being able to service all of government’s (debts). The liquidity situation is very challenging.

    “That is why what we need to do, including the parliament, is to work towards increasing revenue performance.

    “Yes you have been doing that and we are beginning to see improvement, but we need to keep pushing the bar,’’ she stressed.

    Earlier, Chairman of the Committee, Rep. James Faleke (APC-Lagos State) said everyone was aware of Nigeria’s situation in terms of revenue generation.

    Faleke noted that Nigeria was short of revenue, and that so many things suffered when revenue was short.

    The Debt Management Office had earlier stated that Nigeria’s debt profile as at December 2021 stood at N39.55 trillion.

  • FG targets N160bn in taxes from calls, data next year

    FG targets N160bn in taxes from calls, data next year

    The Federal Government says it is expecting to generate about N160.46bn from excise duty on telecommunication services in 2023.

    According to the Nigerian Communications Commission, NCC, the combined revenue of operators in the GSM, Fixed Wired, and Internet Service Providers was N3.21tn in 2021. If the government implements its five per cent excise duty on telecom services, it will generate about N160.46bn.

    The amount, however, assumes that the revenue of the telcos would be static. But in real terms, it could either be higher or lower depending on economic fundamentals in 2022.

    Recently, the Federal Government disclosed a plan to implement a 5 per cent excise duty on telecom services in the nation.

    This was revealed by the Minister of Finance Budget and National Planning, Zainab Ahmed, during a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria.

    Ahmed, who spoke through the Assistant Chief Officer of the Ministry, Mr Frank Oshanipin, said the implementation of the excise duty was in a bid to increase the government’s revenue.

    She said, “The duty rate was not captured in the Act because it is the responsibility of the President to fix rate on excise duties and he has fixed five per cent for telecommunication services which include GSM.

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    “It is public knowledge that our revenue cannot run our financial obligations, so we are to shift our attention to non-oil revenue. The responsibility of generating revenue to run government lies with us all.”

    According to the Chairman, Association of Licensed Telecom Owners of Nigeria, Gbenga Adebayo, telecom consumers will bear the burden of the additional 5 per cent tax.

    At the forum, the finance minister disclosed that the tax would be implemented soon but doubts have since risen concerning whether the excise duty will be implemented at all.

    The Minister of Communications and Digital Economy, Isa Pantami, on Monday, disclosed that he was against the tax and would everything to stop its implementation.

    According to him, the telecoms industry was already doing a lot regardING revenue generation in the nation and attempts to stretch it any further might negatively impact it.

    Speaking at the maiden edition of the Nigerian Telecommunications Indigenous Content Expo organised by the Nigeria Office for Developing the indigenous Telecom Sector, he stated, “The ministry of communications and digital economy is not satisfied with any effort to introduce excise duty on telecommunication services.”

    He added, “Beyond making our position known, we will go behind the scenes and go against any policy that will destroy the digital economy sector. We will go to any extent to legitimately and legally defend its interest.”

    The tax is likely to be passed on to telecommunications consumers who will bear the burden.

    Commenting on the amount the Federal Government might make from implementing this tax, the Chief Operating Officer, Association of Telecommunications Companies of Nigeria, Ajibola Olude, said, “I don’t see the Federal Government implementing the five per cent excise duty.

    “The Minister for Communications and Digital Economy faulted the plan saying it didn’t follow due process. There are laid-down rules before implementing that 5 per cent excise duty. Another reason why I don’t see it being implemented is because of the current macroeconomic factors in the country. Prices have not been stable, if they implement it, it will lead to an upsurge in crimes.”

    The President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, who was at the forum where the implementation of the excise duty was discussed, had told our correspondent that the government had planned to implement the tax in 2020 but stopped because of the COVID-19 pandemic.

  • FG to include school security in 2023 budget

    FG to include school security in 2023 budget

    The Federal Government has promised to include the security of schools in the 2023 budget.

    The Minister of Finance, Budget and National Planning, Zainab Ahmed, stated this on Thursday in Abuja.

    She was speaking at the safe-school summit organised by the Emergency Coordination Center.

    In her words, “In 2023 budget, we will make sure we make specific budget to support financing of safety of our schools.”

    The Minister noted that the Federal Government would also be encouraging states to make specific commitments to the safety of schools.

    Zainab noted that consultation were underway with states, local governments and critical stakeholders to identify the most transparent, effective and accountable ways of mobilising and deploying resources.

    She also disclosed that the national financing plan for the security and safety of schools across the country would be unveiled before the end of the third quarter of this year.

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    The Minister said the Federal Ministry of Finance, Budget and National Planning had established a committee with members drawn from the relevant ministries, departments and agencies, including the Federal Ministry of Education, the military and other security agencies, for this purpose.

    “The committee has been working assiduously to collate inputs from relevant MDAs and to develop a national plan for financing safe schools,” She added, “The plan will incorporate state level plans as well as Federal Government sectoral plans with an emphasis on ensuring adequate budgetary allocation in order to create a safe learning environment for teaching, learning and restoring confidence in the education system.

    “Consultations are currently on the way with states, Local Governments and other critical agencies of government. The committee is also working to identify the most transparent, effective and accountable ways of mobilising and deploying resources.”

  • Why we purchased 10 SUVs for Niger Republic – FG

    Why we purchased 10 SUVs for Niger Republic – FG

    The Federal Government has said it purchased 10 SUVs valued at N1.15bn for the Republic of Niger in order to enable the country to safeguard its territory in the best interest of Nigeria’s security.

    TheNewsGuru.com (TNG) reports the Minister of Finance, Budget and National Planning, Zainab Ahmed made this known on Wednesday while fielding questions from State House Correspondents after the Federal Executive Council meeting chaired by President Muhammadu Buhari.

    “Let me just say that, over time, Nigeria has had to support its neighbours, especially immediate neighbours, to enhance their capacity to secure their countries as it relates to us.

    “This is not the first time that Nigeria has supported Niger, Cameroon or Chad, and the President makes an assessment as to what is required, based on the request of their president and such requests are approved and the interventions provided is to enhance their capacity to protect their own territory as it relates to security also to Nigeria.

    “Nigerians have a right to ask questions, but also the President has a responsibility to make an assessment of what is in the best interests of the country. And I cannot question that decision,” Ahmed explained.

    A report published by Sahara Reporters had revealed how President Buhari approved N1.15bn to purchase 10 Toyota Land Cruiser V8 vehicles for the Nigerien government. The record which was sourced from the ‘appropriations’ page of the Ministry’s website showed that in July 2022, N1,145,000,000 was approved for payment to Kaura Motors Nigeria Limited to supply the SUVs.

    It also revealed that the President had okayed the disbursement since February 2022. The news has sparked outrage amongst Nigerians who argued that funding a foreign entity should not be the government’s priority amid the harsh economic realities.

  • Nigerians to start paying 12.5% tax on calls, SMS, other telecom services

    Nigerians to start paying 12.5% tax on calls, SMS, other telecom services

    Nigerians will soon start paying a 12.5 per cent tax on making calls, sending SMS and other telecommunications services as the Federal Government plans to implement a five per cent inclusive excise duty on telecommunications services in Nigeria.

    The Minister of Finance Budget and National Planning, Mrs Zainab Ahmed, said this at a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria on Thursday in Abuja.

    The event was organised by the Nigerian Communications Commission (NCC)

    The five per cent will be added to the already existing 7.5 per cent Value Added Tax (VAT) on telecommunications services.

    Zainab, who was represented by the Assistant Chief Officer of the Ministry, Mr Frank Oshanipin, said the five per cent excise duty had been in the finance Act: 2020 but was not implemented.

    She said the delay in its implementation was a result of government engagement with stakeholders.

    “Payments are to be made on monthly basis, on or before the 21st of every month.

    “The duty rate was not captured in the Act because it is the responsibility of the President to fix the rate on excise duties and he has fixed five per cent for telecommunication services which include GSM.

    “It is public knowledge that our revenue cannot run our financial obligations, so we are to shift our attention to non-oil revenue.

    “The responsibility of generating revenue to run government lies with us all,” she said.

    Mr Gbenga Adebayo, Chairman, Association of Licensed Telecom Owners of Nigeria (ALTON) said the burden would be on telecommunications consumers.

    “It means that subscribers will now pay 12.5 per cent tax on telecom services, we will not be able to subsidise the five per cent excise duty on telecom services.

    “This is as a result of the 39 multiple taxes we already paying coupled with the epileptic power situation as we spend so much on diesel,” he said.

    Meanwhile, the President of the Association of Telecommunications Companies of Nigeria, (ATCON), Dr Ikechukwu Nnamani, said the five per cent excise duty on telecom services did not conform with present realities.

    Nnamani was represented by the Executive Secretary, Mr Ajibola Alude.

    He said that the state of the industry was bleeding and suggested that the five per cent excise duty be stepped down as it could lead to job losses.

    “t is not well intended, because the industry is not doing well currently,” he said.

    The Controller General of the Nigerian Customs (NCS), retired Col. Hameed Ali, who was represented by the Assistant Controller, Mrs Lami Wushishi, said all active telecom service providers would pay the five per cent excise duty.

    Executive Secretary ALTON, Mr Gbolahan Awonuga, said the five per cent excise duty was not healthy for the industry.

    Awonuga said that the telecom service providers were already paying two per cent of their annual revenue to the NCC.

    “We pay two per cent excise duty to NCC from our revenue, 7.5 per cent VAT and other 39 taxes.

    “We are going to pass it to the subscribers because we cannot subsidise it,” he said.

    The Executive Vice Chairman of the NCC, Prof. Umar Danbatta, in his remarks, said the excise Duty was to have been implemented as part of the 2022 fiscal policy measures.

    Danbatta said the industry had considered the earlier scheduled commencement date of June 1, inadequate and duly took this up with the Federal Government.

    He said the NCC had engaged with the federal ministry of finance, the Nigerian customs service and consultants from the World Bank to get needed clarifications.

    “These engagements enabled us to better understand the objectives and proposed implementation mechanisms of the excise duty.

    “We consider it imperative that these implementing agencies should also meet directly with telecom industry stakeholders to address areas of concern.

    “As the regulator of the telecoms industry, we are responsible for ensuring that industry stakeholders understand their fiscal and other obligations, so that they can maintain full compliance with government policy,” he said.

    He added that the excise duty covered both pre-paid and post-paid telecommunications services.

  • Why we’ve not had accrual to ECA in 4 years – Finance Minister

    Why we’ve not had accrual to ECA in 4 years – Finance Minister

    The Minister of Finance, Dr Zainab Ahmed has said in the past four years, because of volatility in the course oil market, Nigeria has not had accrual to the excess crude account (ECA).

    TheNewsGuru.com (TNG) reports Ahmed made this known when she addressed State House correspondents on the outcome of the Federal Executive Council (FEC) meeting which was presided over by President Muhammadu Buhari on Wednesday in Abuja.

    The Ministry of Finance, Budget and National Planning had presented the draft copies of the Medium Term Expenditure Framework 2023-2025 to the Council for onward transmission to the National Assembly (NASS) for approval.

    According to the Finance Minister, the draft document is for 2023-2025, with an assumption for crude oil price of $70 per barrel for 2023, $66 for 2024 and $62 for 2025, with an estimated production rate of 1.69 million barrels per day for 2023 and 1.813 million barrels per day for 2024 and 2025.

    “The assumptions that we made for the next medium term framework from 2023 to 2025 is that crude oil price will be at $70 per barrel for 2023, $66 per barrel for 2024 and $62 per barrel for 2025.

    “Crude oil production is projected to be 1.69million bpd for 2023 and 1.813million bpd for both 2024 as well as 2025.

    “We have also projected on the nominal GDP, that the size of Nigeria economy will rise up to N225.5 trillion with 95 per cent of this contribution by the non-oil sector while the oil sector will contribute only five per cent.

    “And some steady increase from 2024 to reach up to N280.7 trillion in 2025. This means that Nigeria continues to retain its position as the largest economy in Africa.”

    Ahmed also said the 2022 budget till April, performed very well with a steady growth in the economy for five consecutive quarters.

    She said the ministry got inputs from the Federal Executive Council and would make the necessary adjustments, for onward presentation to the National Assembly.

    “On the issue of the excess crude account, in the past four years, because of volatility in the course oil market, we have not had accrual to the excess crude account.

    “So, what we have had has been gradually used up for different purposes and it is always used in consultation with the National Economic Council – that is the Governors because this is a Federation Account.

    “The last approval that was given by the council was the withdrawal of $1billion to enhance security.

    “We have been utilising that and the last trench of that has been finally released because deployment to security agencies are based on the contracts that are executed and it’s been used strictly for that security purpose.

    “So, the utilisation of the account is with the full knowledge of the governors,” she said.

    Also addressing the correspondents on the outcome of the meeting, the Minister of Aviation, Sen. Hadi Sirika, said the Council approved N707. 9 million for the procurement of investigation tools for the Accident Investigation Bureau of the Nigerian Aviation Sector.

    According to him, the tool, when procured, will aid investigation, whenever an aircraft is involved in an accident in any part of the country.

    “The memo was for the deployment of an investigation tool by the Accident Investigation Bureau (AIB). That tool permits the AIB to be able to record going-on in flights; God forbid, should there be a need to investigate an accident, or a serious incident and the tool will help them to do so.

    “That procurement is in the sum of N707, 962, 854. 83, an equivalent of 1, 506, 285.70 Euros, inclusive of 7.5 per cent Value Added Tax at the Central Bank’s exchange rate of N470 to a Euro, with a delivery period of 11 months,” he stated.

    Sirika also announced that the council approved the leasing of three aircraft by the country’s national carrier, called ‘Nigeria Air’ to enable it to commence operations on a date to be announced soon by government.

    “We have said in our outline business case, which was earlier approved, that we are starting with three aircraft for the first instance and then we progress.

    “We will have a mixture of Airbus and Boeings because every airline that will grow big uses the two. We will start with domestic flights and then we grow to become international and then we move to become regional and intercontinental.

    “There are challenges currently in our aviation industry but it is a global phenomenon and it will not last forever because aviation is a very resilient sector. Certainly we will overcome these problems,” he added.

  • BREAKING: FG to spend N6.72 trillion on fuel subsidy in 2023

    BREAKING: FG to spend N6.72 trillion on fuel subsidy in 2023

    Nigeria’s federal government (FG) has said it would make a provision of N6.72 trillion for fuel subsidy in 2023.

    TheNewsGuru.com (TNG) reports the Minister of Finance Budget and National Planning, Mrs Zainab Ahmed disclosed this in Abuja on Thursday.

    Mrs Ahmed disclosed this during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation.

    The Finance Minister said the amount would remain and be fully provided for by the NNPC on behalf of the federation.

     

    Details shortly…

  • VIDEO: Acting Accountant General of the Federation resumes office amidst cheers

    Mr Anamekwe Nwabuoku has resumed office as acting Accountant General of the Federation (AGF).

    TheNewsGuru.com (TNG) reports this is following the sacking of the former AGF, Ahmed Idris over N80 billion fraud allegations.

    Nwabuoku’s appointment was made public on Sunday in a statement issued by Yunusa Abdullahi, spokesperson for the Minister of Finance, Zainab Ahmed.

    Watch video below:

     

    The Acting Accountant General of the Federation Mr Chukwunyere Anamekwe Nwabuoku Officially Reporting to Work Today

    Posted by Mohammed Galadanchi Garba on Monday, 23 May 2022

  • Buhari signs Executive Order 11 on maintenance of national public buildings

    Buhari signs Executive Order 11 on maintenance of national public buildings

    Executive Order 11 on the maintenance of national public buildings has been signed by President Muhammadu Buhari.

     

    President Buhari signed the document Wednesday morning before the commencement of the cabinet meeting holding at the Council Chambers of the State House, Abuja.

     

    Speaking shortly before signing, the Nigerian leader directed all Ministries, Departments and Agencies of government (MDAs) to set up maintenance departments in line with the provisions of the new Executive Order.

     

    He said the order now gives legal backing to the country’s national maintenance policy, following its earlier approval by the Federal Executive Council.

     

    He added that government had already started utilising the policy to give face lift to some of its buildings like the federal secretariat, Abuja, and 24 others spread across the country.

     

    “Since the approval of the policy by the Federal Executive Council, the federal government has consciously started the implementation of maintenance of strategic facilities like the federal secretariat Abuja and federal secretariats in 24 states of the federation, where at least 40 people are now daily employed in each of those 24 secretariats.

     

    “The office of the Head of Civil Service of the Federation has approved the establishment of a department of federal public assets maintenance as a vital step in support of the implementation of this national policy, which is unprecedented in our history and approach to maintenance.

     

    “In order to ensure the fullest implementation and impact of the policy, it is my pleasure to sign this Executive Order that ties maintenance direct to our economy. By this Order, I expect Ministries, Departments and Agencies to set out and ensure the operation of their maintenance departments and make necessary procurements for their maintenance in accordance with the provisions of the public procurement act,” he said.

     

    After the signing, President Buhari presided over the cabinet meeting. Among those who attended the meeting are Vice President Yemi Osinbajo, Secretary to Government of the Federation Boss Mustapha, Chief of Staff to the President Ibrahim Gambari, and Head of the Civil Service of the Federation Folashade Yemi-Esan.

     

    Others are the Ministers of Information and Culture, Lai Mohammed; Finance, Budget and National Planning, Zainab Ahmed; Works and Housing, Babatunde Fashola; Science and Technology, Ogbonnaya Onu; Women Affairs, Pauline Talen and Water Resources, Suleiman Adamu.

  • FG quietly ends electricity subsidy

    FG quietly ends electricity subsidy

    The federal government (FG) of Nigeria has quietly removed electricity subsidy, the Minister of Finance, Mrs Zainab Ahmed has revealed.

    TheNewsGuru.com (TNG) reports Ahmed revealed this while speaking on Thursday at a virtual meeting of African Finance Ministers and the International Monetary Fund (IMF).

    The Minister of Finance stressed the FG was making efforts to make sure that subsidies were cleaned up totally in the country, stressing that what is next is fuel subsidy.

    Ahmed noted that the FG is currently doing a budget amendment to accommodate incremental subsidy removal as a result of the reversal of the decision to remove fuel subsidy by July.

    She stressed fuel subsidy remained a huge problem for the government and that it had thrown up deficits more than what was planned.

    “We are cleaning up our subsidies. We had a setback; we were to remove fuel subsidy by July this year but there was a lot of pushback from the polity. We have elections coming and because of the hardship that companies and citizens went through during the COVID-19 pandemic, we just felt that the time was not right, so we pulled back on that.

    “But we have been able to quietly implement subsidy removal in the electricity sector and as we speak, we don’t have subsidies in the electricity sector. We did that incrementally over time by carefully adjusting the prices at some levels while holding the lower levels down.

    “We are currently doing a budget amendment to accommodate incremental subsidy (removal) as a result of the reversal of the decision and we want to cap it at that.

    “Hopefully, the parliament will agree with us and we are able to continue with our plan for subsidy (removal) otherwise the way things are going we will not be able to predict where the deficit will be as a result of the fluctuation in the global market,” Ahmed said.