Tag: Zainab Ahmed

SERAP sues Buhari, others over ‘missing N3.1bn in Finance Ministry’

Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against President Muhammadu Buhari “over his failure to probe allegations that over N3bn of public funds are missing from the Federal Ministry of Finance, and to ensure the prosecution of those suspected to be responsible, and the recovery of any missing public funds.”

The suit followed the grim allegations by the Office of the Auditor-General of the Federation in the 2018 and 2019 annual audited reports that N3.1bn of public funds are missing, misappropriated or unaccounted for.

In the suit number FHC/L/CS/148/22 filed last Friday at the Federal High Court in Lagos, SERAP is seeking: “an order of mandamus to direct and compel President Buhari to ensure the investigation of the alleged missing N3.1bn of public funds, the prosecution of anyone suspected to be responsible, and the recovery of any missing public money.”

In the suit, SERAP is arguing that: “The allegations that over N3bn of public funds are missing amount to a fundamental breach of national anticorruption laws and the country’s international obligations including under the UN Convention against Corruption to which Nigeria is a state party.”

According to SERAP, “Investigating and prosecuting the allegations, and recovering any missing public funds would serve the public interest, and end the impunity of perpetrators.”

SERAP is also arguing that, “The consequences of corruption are felt by citizens on a daily basis. Corruption exposes them to additional costs, and undermines economic development of the country, trapping the majority of Nigerians in poverty and depriving them of opportunities.”

Joined in the suit as Respondents are Mr Abubakar Malami, SAN, Minister of Justice and Attorney General of the Federation; and Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning.

SERAP is arguing that, “It is in the interest of justice to grant this application. The suit is in keeping with the Nigerian Constitution of 1999 [as amended], particularly the provisions on oath of office by public officers, and section 15[5] which requires the authorities to abolish all corrupt practices and abuse of power.”

SERAP is also arguing that, “Complying with constitutional requirements and international standards on transparency and accountability would ensure effective and efficient management of public resources, and put the country’s wealth and resources to work for the common good of all Nigerians.”

The suit filed on behalf of SERAP by its lawyers Kolawole Oluwadare and Ms Adelanke Aremo, read in part: “The failure to investigate the allegations of grand corruption in the Ministry of Finance constitutes a grave violation of the duty placed on the authorities to take appropriate measures to promote transparency and accountability in the management of public finances.”

“President Buhari’s constitutional responsibility to ensure the investigation and prosecution of allegations of corruption, as well as recovery of any missing public funds is contained in Section 15[5] of the Nigerian Constitution, which provides that ‘the State shall abolish all corrupt practices and abuse of power’, and in the Oath of Office in the Seventh Schedule of the Constitution.”

“The Oath of Office of the President is considered of such importance that section 140 of the 1999 Constitution provides that the President cannot perform his or her respective official functions as President without taking the oath of office.”

“Granting the reliefs sought would help to address the adverse consequences of alleged diversion of public funds on the human rights of poor Nigerians.”

“Mandamus is a high prerogative writ which lies to secure the performance of a public duty. It gives command that a duty of a public nature which normally, though not necessarily is imposed by statute but is neglected or refused to be done after due demand, be done.”

“If there is a discretion to perform the duty, the court has the power to examine whether the discretion to refuse to act has been properly exercised.”

“Transparent and accountable public financial management is a key pillar of good governance, and of vital importance to create and maintain fair and sustainable economic and social conditions in the country.”

“Articles 5 and 9 of the UN Convention against Corruption impose legal obligations on the Buhari administration to ensure proper management of public affairs and public funds, and to promote sound and transparent administration of public affairs.”

“According to the report of the Auditor-General for 2018, the Ministry of Finance spent N24,708,090.00 on pre-retirement training but without any document. The consultant hired also failed to quote any price as cost of the training but the Ministry paid N5,670,060.00 to the consultant.”

“Request for payment from the consultant was dated 20 January 2017 while the first payment voucher in his favour was dated 13 January 2017 (7 days before his request).”

“The Ministry also reportedly failed to account for N2,885,772,493.27 released to the Ministry from the Service Wide Vote to take care of estacodes and other allowances for representing the Federal Government in meetings, and contribution to Organization for Petroleum Exporting Countries (OPEC).”

“The money was spent without approval, and any documents. The Auditor-General is concerned that the money may have been mismanaged.”

“The Ministry also reportedly awarded a contract on 17th May 2017 for N98,540,500.00 without any document, contrary to the Public Procurement Act. The project was not also budgeted for. There was no evidence of performance of the contract. The Ministry also deducted N9,354,809.52 as WHT and VAT but without any evidence of remittance. The Auditor-General wants the money recovered.”

“The Ministry also reportedly spent N98,759,299.20 between January–December 2017 without any document, contrary to Financial Regulation 601.”

“According to the 2019 report of the Auditor-General, the Ministry paid N20,466,744.00 as cash advances to staff of ‘You-Win’ between 8 February and 18 December, 2018 but the Ministry has failed to retire the money.”

“The advances were granted for the purchase of store items, repairs and other services that would have been made through the award of contract. Government lost N2,046,674.40 which would have accrued as taxes had these jobs been undertaken through award of contracts. The Auditor-General wants the money recovered.”

“The Ministry also reportedly paid N15,471,850.00 to two consultants for capacity building in Kano and Adamawa States but without any supporting document, contrary to paragraph 603 (1) of the Financial Regulations. The Auditor-General is concerned that the money may have been diverted, and wants it recovered.”

No date has been fixed for the hearing of the suit.

January 30, 2022
Why FG postponed fuel subsidy removal indefinitely and what it means

The Minister of State for Petroleum Resources, Chief Timipre Sylva, says it is clear that it is not possible to remove subsidy on petroleum products due to some impediments.

He said this during a meeting with Senate President Ahmad Lawan on Monday in Abuja over the planned removal of subsidy on petroleum products by the Federal Government.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, was at the meeting.

According to Timipre, it is clear that it is not possible at this time for the government to remove the subsidy.

“It is not within the contemplation now, of this administration, to remove subsidy, but of course, if there are legislative enablers that will ensure it is within the law, then I think it is a legislative responsibility.

“Subsidy removal will not happen. When you pass a law, a law is not cast in stone. In implementing the law, you now arrive at some impediments to implementation.

“We now feel we need to take care of those impediments because before subsidy is removed, there are certain things that need to be put in place to protect the people.

“We feel we need sometime to be able to put everything in place so that when subsidy is removed, it will have minimal impact on the people,” the minister said.

In his remarks, Lawan faulted the timing of the planned subsidy removal.

He said that in as much as the administration and management of subsidy on petroleum products were flawed, the President Muhammadu Buhari-led government believed that sufficient planning must be carried out before its eventual removal.

He said: “The position of everyone in government today is that, admittedly, subsidy administration and management are flawed because of so many reasons.

“Admittedly, the burden is huge and massive and there is need at one point to do away with the subsidy.

“Even though our economy is growing, we still have the challenge of getting things to be better for our people.

“A lot of us in this administration believe that the issue of removal of subsidy should be handled with utmost care, especially that sufficient planning needs to be done.”

Lawan appealed the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to stop their planned protest against the proposed removal of fuel subsidy.

The senate president said the move was unnecessary.

“I am taking this opportunity to appeal to the TUC and NLC to shelve this plan to go on strike or demonstration, it is totally unnecessary.

“There is not going to be removal of subsidy; so, there is no need for this. Please, let’s not create unnecessary tension where there should be none,” he said.

The Minister of Finance, Ahmed, said that the Federal Government made provisions for fuel subsidy in the 2022 Budget – from January to June.

According to her, all payments on fuel subsidy ordinarily would cease as from July 2022.

She said that in view of the timing which was “problematic”, the government decided not to go ahead with the removal of subsidy in July, particularly against the backdrop of outcomes from ongoing consultations.

She added that the Federal Government was exploring alternatives to premium motor spirit as well as pushing to step up the country’s crude oil refining capacity.

The labour unions had planned to hold a protest from Jan. 27 over the planned subsidy removal.

What indefinite postponement of petrol subsidy removal means – Economist

An economist, Dr Muda Yusuf, says the decision of the Federal Government to postpone the removal of petrol subsidy indefinitely has a weighty economic cost.

Yusuf, who is the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), made this known in a statement issued on Monday in Lagos.

Hajia Zainab Ahmed, Minister of Finance, Budget and Economic Planning, had made the announcement on Monday in Abuja, speaking at the National Assembly, that the government would no longer go ahead with its earlier plans to remove subsidy on Premium Motor Spirit in July 2022.

Reacting to the development, Yusuf noted that the capitulation on the subsidy removal did not come as a surprise because of the prevailing realities and opposition by organised labour.

He said: “There were too many odds against the move. There were obvious concerns about the potential political cost to government and the ruling party.

“There were worries about the social cost given the excruciating poverty in the country. There was also the waning goodwill required by government to enlist the support of the people.

“The whole subsidy story became a political economy matter. It was moved from the realm of economics and investment to the political realm.

“The outcome was predictable, especially with an impending general elections next year.

“But the economic cost of the capitulation is equally weighty. The truth is that you cannot eat your cake and have it.”

According to him, Nigerians should expect the cost of funding the subsidy to be much higher this year because of the surge in crude oil price.

Yusuf said if the oil price remains high for most part of the year, the subsidy cost could go as high as N2.5 trillion or even more by the end of the year.

He said: “This would surely affect funding for critical infrastructures such as roads, railways, healthcare education, and even security.

” The petroleum products smugglers, beneficiaries of the fiscal leakages in the fuel subsidy ecosystem and their collaborators will continue to smile to the banks for the next one and half years.”

According to him, it will be tough for some states in terms of payment of salaries, especially states that are heavily dependent on federal allocation.

“Many will struggle to meet their financial obligations as sub-nationals,” he said.

Yusuf , a former Director General of the Lagos Chamber of Commerce and Industry, said macroeconomic risks would become elevated as fiscal deficit and borrowing significantly surpasses projections in the 2022 budget.

He added that the Central Bank of Nigeria may have to continue to cover financing gaps through ways and means.

” This of course has serious inflationary implications. The macroeconomic outcomes would adversely impact on the exchange rate, leading to further depreciation of the currency.

“Meanwhile, prospective investors in the downstream oil sector would withhold their investments until the policy environment becomes conducive.

“Additionally, a major confidence crisis has been created around the Petroleum Industry Act as a result of this capitulation.

“These are the price we would have to pay as a country for the policy reversal,” Yusuf said.

January 25, 2022
Strike: FG promises to address ASUU’s basic demand within 7days

The Federal Government on Thursday in Abuja said that it would address the basic demands of the Academic Staff Union of Universities (ASUU) next week.

The Minister of Finance, Mrs Zainab Ahmed, disclosed this at a tripartite meeting organised by the Speaker of the House of Representatives, Rep. Femi Gbajabiamila, the government and the union.

It would be recalled that ASUU had issued a three-week ultimatum to the Federal Government to honour agreements reached or the union would commence a strike.

The union had demanded the release of N30 billion as part of the first tranche of Universities Revitalisation Fund.

The union also demanded the release of N22.12 billion which is to be paid to its members as earned allowances.

The union also insisted on the implementation of University Transparency Accountability Solutions (UTAS) and a re-negotiation of the 2009 agreement between the union and the Federal Government.

Addressing the meeting, Zainab said that the process to meet the demands of the union had commenced and that the monies would be paid before the end of next week.

She said that the efficiency of UTAS was still being verified by the relevant agencies and would be implemented when concluded.

She also said that the process for the commencement of the re-negotiations of the agreement between the Federal Government and ASUU had started.

Eairler, Gbajabiamila said that he called the meeting so that the issues of strike would be addressed once and for all.

Gbajabiamila said that the consequences of interrupting the education process was enormous and that the unintended consequences were more deadly.

“We cannot sit here as leaders and watch things fall apart; education is very important and no amount of money put into it is too much.

“This cannot be a perennial exercise, strike cannot be a tool we use all the time; it should be the last resort after all other efforts have failed.

“We need to resolve this issue once and for all,” he said.

The President of ASUU, Prof. Victor Emmanuel, said that the union had given the government a three-week ultimatum after which it would commence the strike.

He said that he would convey the information to the members of the union and would bring their response back to the speaker.

November 18, 2021
What we will do differently to remove fuel subsidy finally in 2022 – FG

The federal government (FG) will provide Nigerians with palliatives in the form of transport allowance after removing fuel subsidy from July 2022.

TheNewsGuru.com (TNG) reports Zainab Ahmed, Minister of Finance made this known on Thursday, saying that this is to cushion the effects of fuel subsidy removal.

Ahmed also stated that as part of efforts to cushion the effects of fuel subsidy removal in 2022, the FG was planning to do things differently in order to succeed in finally removing fuel subsidy.

Speaking during an interview on Channels TV’s Politics Today, which was monitored by TNG, the Minister said fuel subsidy is costing the country resources that should be used for education and health.

She explained how the payment of fuel subsidy is not beneficial to the common man, and described it as a “major drain and waste” on the country’s economy, adding that it is crucial that the country exit from the fuel subsidy regime.

The Finance Minister said the Petroleum Industry Act (PIA) provides that petroleum products should be deregulated, adding that deregulation will take effect from July 2022.

“While the act was passed. The president said there would be a one-year timeframe within which implementation will be made, moving from the status quo to the provisions of PIA.

“In making our plans at least in the 2022 budget, we assumed that this deregulation will take effect from July 2022.

“We assume that by June we will be able to exit the fuel subsidy, and we have made provision only up till June in the budget for fuel subsidy.

“And it is important that we exit this subsidy. It is costing us a significant amount of resources that we could have applied for education, health and critical infrastructure. It is a major waste and a major drain on the economy,” Ahmed said.

Asked if the FG is prepared for a scenario in which labour unions will reject fuel subsidy removal, the Minister said the FG is planning the deployment of compressed natural gas (CNG) vehicles as an alternative to petrol-aided vehicles.

Ahmed said the federal government is considering the payment of transport allowance to Nigerians for six or 12 months to cushion the effect of fuel subsidy removal.

She said the transport allowance will be transferred directly to the bank accounts of the right people through the help of a bank verification number and national identity number.

“What we are doing now is — we’ve been negotiating with labour. We are planning and deploying CNG — which is an alternative to mass transit to PMS.

“But we are also looking at providing some palliatives for a large number of the population in terms of maybe a transport subsidy for a short period like six months or if it is long, maybe nine months or maximum 12 months.

“Transport subsidy that would be given directly to individuals. What is constraining us is the issue of registration. The national identity registration process is ongoing and we want to make sure that this subsidy goes into the hands of the right people.

“That we can make transfers to people using their BVNs, account number and national identity number, and we know that it has gone to the right people.

“That is part of the things we are negotiating and working on. We are also engaging with the World Bank in designing a programme that will help us to provide succour for at least a minimum of 6 months, maximum of 12 months to enable us to make that transition,” the Minister said.

Asked when the fuel subsidy regime would end, she said, “If you look at what I said earlier, as from July 2022, there is no provision for fuel subsidy.

Asked if Nigerians should forget fuel subsidy in July 2022, she said, “Yes. We are trying to see if we can make it earlier. If we are able to get the funding to provide this alternative transport allowance, then we will be able to make it earlier.”

Minister explains reasons for rising cost of rice; defends Buhari’s constant local, foreign borrowings

The Minister of Finance, Budget, and National Planning, Zainab Ahmed, on Thursday also said smuggling is responsible for the rising cost of rice in the country.

The minister who spoke on Thursday on a monitored Channels Television programme said smuggling is affecting the market and hurting the citizens.

“Unfortunately there is a lot of distortion and the distortion is arising from smuggling of goods into the country,” the Minister said.

“We have unpatriotic Nigerians that will bring rice that is poor quality, some of it not even fit for human consumption and come and dump it in the market.”

She also reiterated the Federal Government’s efforts in fighting smuggling, noting that there is a combined team of the Nigerian Customs Service (NCS), Police, the Department of Security Services (DSS) among others to rid the nation of economic saboteurs.

The Minister also reacted to the fresh borrowing request by the Federal Government which was recently approved by the National Assembly.

According to her, the Federal Government has created a Medium-Term Debt Management Strategy, noting that the borrowings are not being done by fiat.

The borrowing that was approved by the lawmakers, the Minister noted, has been in the National Assembly since early this year.

“It is encapsulated in a plan, we are guided by the Fiscal Responsibility Act that sets the limit of how much you can borrow at any particular time.

“We have also structured the borrowing to make sure that we have the balance between domestic borrowing as well as external financial borrowings,” she added.

President Muhammadu Buhari had in May, asked the Senate to approve the loan request.

The 2018-2020 External Borrowing (Rolling) Plan contained a request for approval in the sum of $36.8 billion, €910 million, and a grant component of $10 million.

Lawmakers of the upper chamber have since then been making approvals in bits.

They approved $8.3 billion and €490 million in July. They also approved $6.1 billion in the same month.

November 12, 2021
Nigeria’s economy gradually picking up – Minister of Finance

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed has said Nigeria’s economy is gradually picking up.

Ahmed disclosed this on Monday in Abuja, the federal capital territory (FCT) while briefing newsmen on the country’s recently recorded Q2 GDP.

Recall that the National Bureau of Statistics (NBS) recently announced the GDP growth of 5.01 per cent for Q2 2021 for the country.

The NBS revealed that during the quarter, Nigeria’s GDP grew by 5.01 per cent, year-on-year, in real terms, resulting in the third consecutive quarter growth since last year’s shutdown.

According to the Minister of Finance, Budget and National Planning, the 2021 Q2 growth rate reflects much better economic performance compared to the same period last year, which recorded -6.10 per cent growth rate.

“Furthermore, it was also better than the previous quarter (Q1) growth rate of 0.51 per cent on a year-on- year basis. Year to date, real GDP grew 2.70 per cent in 2021, compared to -2.18 per cent for the first half of 2020.

“Broadly speaking, the services sector recorded a strong performance growing at 9.27 per cent during the quarter, representing the fastest growth in the services sector since 2010.

“Growth in Q2 2021 would have been much stronger had it not been for agriculture recording slower growth at 1.30 per cent.

“It was due to several bottlenecks currently negatively affecting the sector and due to the Industrial sector contracting by -123 per cent largely due to the over 12 per cent contraction in crude oil and natural gas production.

“Nonetheless, the non-oil sector was a major driver of growth during the quarter, recording a growth rate of nearly seven per cent which represents the fastest growth in the non-oil sector Q3 2014.

“Specific activities which recorded growth during the quarter include, trade, transportation, coal mining, metal ores, as well as insurance each of which recorded double digit growth” she said.

Ahmed noted that these figures indicated that business and commercial activities were fully returning to pre-pandemic levels as restrictions in movement, business activities, as well as domestic and international travel had been relaxed.

“When these estimates are considered along with declining inflation rate which slowed down from 18.17 per cent at the end of Q1 to 17.75 per cent at the end of Q2 and as at July, stands at 17.38 per cent.

“It is clear that the economic recovery is gradually picking up steam. With favourable international economic conditions expected as economic activities and normalcy returns across major economies.

“And as local conditions continue to improve to allow business activities, the Nigerian economy is expected to maintain a steady path to more inclusive growth,” the Minister said.

August 30, 2021
Court stops Finance Minister, others from slashing salaries of medical doctors in academics

The National Industrial Court sitting in Abuja has restrained the Minister of Finance, Mrs Zainab Ahmed, from reviewing downward the salaries and allowances of members of the Association of Specialist Medical Doctors in Academics (ASMEDA).

The News Agency of Nigeria (NAN) reports that the claimants; Dr Christopher Sakpa, Dr Momoh Mcsionel, Dr Ahmed Rabiu and Dr Darlington Akukwu had, for themselves and on behalf of the affected members of ASMEDA.

The Defendants are the National Salaries, Incomes and Wages Commission; Accountant-General of the Federation and Minister of Finance to court as 1st to 3rd defendants respectively.

Justice Osatohanmwen Obaseki-Osaghae, in a ruling on an ex-parte motion moved by counsel to the claimants, Martin Agba, held that the order of interim injunction would subsist pending the hearing and determination of the suit.

Justice Obaseki-Osaghae restrained all the defendants from acting on the contents of the April 22, the letter issued by the salaries commission, pending the determination of the suit.

She also made “an order of interim injunction, restraining the defendants from paying the claimants’ July 2021 salary and subsequent months’ salaries based on the CONUASS and associated allowances pending the determination of the motion on notice.

“A mandatory order of interim injunction on the defendants to pay the claimants’ July 2021 salary and subsequent months’ salaries based on the CONMESS and associated allowances as approved by the Federal Government of Nigeria on Sept. 29, 2009 which is the status quo as at April 2021, pending the determination of the motion on notice.”

The judge, who ordered that the originating processes, motion on notice together with hearing notices be served on the defendants, adjourned the matter until Oct. 14 for hearing of the motion on notice.

NAN reports that in a motion on notice marked: NICN/ABJ/145/2021 dated July 8 and filed July 12 by Agba, the applicants sought some claims against the defendants.

They asked the court to declare that: “the commission’s letter of April 22, to the Accountant General with reference number: SWC/S/04/S.410/T/86 directing enrolment of the claimants into the Consolidated University Academic Salary Structure (CONUASS) and associated allowances is a violation of the presidential directive of Sept. 29, 2009.

They argued that the Federal Government approved and placed the claimants on the Consolidated Medical Salary Structure (CONMESS) and associated allowances and therefore has no legal basis, is null and void and of no effect whatsoever, should be discountenanced and_ retracted forthwith.

They also sought an order of mandatory injunction, directing the defendants to restore the claimants to the Consolidated Medical Salary Structure (CONMESS) and associated allowances as approved by the Federal Government of Nigeria on Sept. 29, 2009 and with which the claimants have previously for long been paid their salaries until April 2021.

They further sought an order of perpetual injunction, restraining the defendants from using, giving effect, making reference to or in any way acting on the contents of the said letter of April 22.

They also sought for an order of the court, directing the defendants to pay the differential sum in salaries between CONMESS and associated allowances and CONUASS // paid to the claimants from May 2021 until date of delivery of final judgment in this suit.”

The claimants, who sought the order of the court, directing the defendants to pay the sum of N50 million to them as general and exemplary damages for deliberate breach of extant policy of a government by their stoppage of payment of CONMESS and associated allowances, also prayed the court to direct them to pay N3 million as cost of the legal action.

NAN reports that the Federal Government had, on Sept. 29, 2009, in a circular with reference number: SWC/S/04/S.410/220, approved the new salary structure for medical and dental officers in the federal public service known as CONMESS.

However, in a letter with reference number: SWC/S/04/S.410/T/86 dated April 22, addressed to the Accountant-General of the Federation and signed by the acting Director, Compensation, Adighiogu Chiadi, on behalf of its chairman, the National Salaries, Incomes and Wages Commission directed that medical doctors in academics and research institutions should be re-enrolled on CONUASS.

The claimants averred that since the latest directive took effect, their take-home pay had reduced drastically by about 60 per cent.

August 4, 2021
Why National Economic Plans fail in Nigeria – Minister

The Minister of finance, Zainab Ahmed on Friday identified reasons for the failure of past national economic plans in the country.

According to her, the absence of state governments’ input into the programme is a major reason for its failure.

Ahmed made this revelation in Abuja at the 19th National Council on Development Planning (NCDP) meeting.

The finance minister said that the notion that past national economic plans had failed “was based on the assertion that the Plans were more of federal government rather than national.”

According to her, “this notion had denied previous plans of the needed cooperation from state governments, which led to little success recorded so far.”

Making reference to the successes of the previous plans, she said: “you would agree with me that previous plans witnessed varying degree of successes. For instance, the Economic Recovery and Growth Plan (ERGP) 2017-2020, which was crafted at the wake of the global economic meltdown of 2016, was able to pull Nigeria economy out of recession.”

The meeting is an annual event organised along with the Joint Planning Board (JPB) meeting by the Budget and Planning arm of the Federal Ministry of Finance, Budget and National Planning in conjunction with state governments for policy formulation and implementation of contemporary economic issues.

March 26, 2021
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.

February 23, 2021
COVID-19: Minister predicts Nigeria’s economy recovery date

The Federal Government has predicted that the economy will rebound to positive territory in the first quarter (Q1) of 2021.

Minister of Finance, Zainab Ahmed made this prediction when board members of the Federal Inland Revenue Service (FIRS) paid her a courtesy call.

She hinged her optimism on the minimal impact of the corona virus pandemic. She said: “The shocks have not manifested as expected, and that the pandemic has not impacted much, especially in Nigeria because of the proactive measures taken by government especially in the health sector.”

A statement from the ministry signed by Yunusa Tanko Abdullahi, the Special Adviser Media and Communications to Minister of Finance, quoted Zainab Ahmed as saying: “We are expecting by the first quarter of 2021, we shall be okay.”

The finance minister reminded the FIRS board members that “there are other government obligations and debt servicing which requires revenue to fund and we can see that the capacity to do more is there and we expect you (FIRS) to do more”.

Mrs Ahmed said she was happy “the FIRS has remained resolute as both Value Added Tax (VAT) and Stamp Duty have helped in boosting the revenue”.

FIRS Chairman Mr. Mohammed Nami, said the agency is doing well and the reforms are working.

He added: “In the three to five months, FIRS has been contributing up to 70 percent of Federation Account Allocation Committee (FAAC) allocation.”

He noted that oil figures were down and that COVID-19 has impacted negatively and, therefore, a lot of reforms being carried out are already yielding results. The FIRS team solicited the minister’s support for their reforms.

September 16, 2020
COVID-19: FG to give stipends to Nigerians- Zainab Ahmed

Zainab Ahmed, the minister of finance, budget and national planning, has averred that the federal government is considering giving out stipends to people whose jobs have been affected by the coronavirus outbreak.

Ahmed made this revelation while speaking on Politics Today, a programme on Channels TV.

“We have a number of fiscal incentives that we have thought through and designed but we have to do a couple of engagements before we announce them because of our fragile fiscal situation,” she said.

“We don’t want to rush and make announcements of tax cuts or tax holidays without looking at the full picture of how it affects the federal government, states and how it affects businesses.

“The government is looking at the possibility of giving out stipends, increasing the stipends that it giving out to the category of Nigerians that are classified as poor and vulnerable.

“Also, we are looking at the category of citizens that have been affected by the nature of their jobs by this pandemic. For example, airports are closed so people who run taxi services at the airport will be at home with nothing to do. So we have to carefully identify the groups that will get these interventions. We are also not forgetting businesses.”

She added that the government is still trying to determine the method of disbursing the funds and ensuring maximum impact given Nigeria’s large population.

However, the minister said the economy would enter a recession if the health crisis lasts up to six months.

“Are we broke, no we are not broke. Are we buoyant, we are not buoyant as well. We have resources to manage and we have been able to find new sources of funds to realise very quickly to keep the country stable,” she said.

“Fact is, we are going to struggle in terms of revenue. The federal and state government will be frantically looking for alternative sources of funding in the form of budget support.

“We are hopeful that this pandemic will be limited in time. If it is an average of three months, we should be able to close the year with positive growth. If it goes longer than that, six months, one year, we will go into a recession.”

She said the federal government is already talking with lenders to renegotiate repayment terms and “seek a stay of the debt service to preserve some of the revenue”.

Nigeria’s revenue has taken a hit after crude oil, its major source of income, witnessed a sharp price decline.

March 28, 2020