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Economy

FEC Okays N13.08trn for 2021 Budget, CAPEX to Gulp N2.1trn

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By Modupe Gbadeyanka

The sum of N13.08 trillion (approximately N13.1 trillion) has been approved for the 2021 fiscal year by the Federal Executive Council (FEC).

The approval was given at the virtual weekly FEC meeting held in Abuja on Wednesday and presided over by President Muhammadu Buhari, with his vice, Mr Yemi Osinbajo, in attendance and some Ministers.

This amount is more than the earlier aggregate expenditure of N12.66 trillion estimated for next year in the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) published by the budget office.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, while briefing newsmen after the meeting today, said the budget has about 29 per cent of it earmarked for capital expenditure (CAPEX).

According to her, next year, the council said the sum of N2.083 trillion should be used to execute the various projects spread across the country.

Mrs Ahmed stated that the projects would run on N4.48 trillion deficit, while the revenue target in the financial year is expected to be N7.9 trillion.

She further said the government expects a gross domestic product (GDP) growth of 3 per cent in the year and an inflation rate of 11.95 per cent.

A few weeks ago, the National Bureau of Statistics (NBS) said the inflation rate in the month of August 2020 increased by 13.22 per cent from 12.82 per cent in July 2020.

During her briefing with journalists today, the Finance Minister stated that next year, the Naira to US Dollar exchange rate is pegged at N379/$1.

In addition, according to her, the crude oil benchmark is at $40 per barrel, while the volume of oil production is expected to be 1.86 million barrels per day, inclusive of 400,000 barrels per day of condensate.

Nigeria and other members of the Organisation of the Petroleum Exporting Countries (OPEC) and their allies led by Russia known as OPEC+ agreed to an output cut deal in April 2020 so as to stabilise the price of the commodity at the global market when it was steeping at the beginning of the year to less than $20 per barrel.

In the past, Nigeria was allowed to produce over 2 million barrels of crude oil per day, but because of the deal, the country, which depends on oil for most of its revenue, was allowed to produce about 1.7 million barrels per day from May to July and from August till December 2020, it will produce about 1.4 million barrels per day, excluding condensate.

The 2021 budget is expected to be submitted to a joint session of the National Assembly next week by Mr Buhari.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Court Authorises EFCC to Detain Six CBEX Promoters

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CBEX

By Modupe Gbadeyanka

The Economic and Financial Crimes Commission (EFCC) has been given the power to arrest and detain six promoters of the troubled investment scheme operator, Crypto Bridge Exchange (CBEX).

The EFCC, through its counsel, Ms Fadila Yusuf, filed an ex-parte motion to keep the suspects in its custody pending the conclusion of investigation of the alleged offences and possible prosecution.

The suit was filed at the Federal High Court in Abuja and on Thursday, Justice Emeka Nwite, allowed the anti-money laundering organisation to further detain the sextet of Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim as 1st to 6th defendants, respectively.

The commission asked the court to grant it “an order remanding the defendants in the custody of the complainant/applicant pending the conclusion of investigation of the alleged offences and possible prosecution.”

“The defendants are at large and a warrant of arrest is required to arrest the defendants for proper investigation and prosecution of this case,” she added.

In his ruling, Justice Nwite said, “I have listened to the submission of the learner counsel for the applicant, EFCC. I have also gone through the affidavit evidence with exhibits thereto along with the written address.

“I am of the view and I hold that the application is meritorious. Consequently, the application is granted as prayed.”

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Economy

NNPC Audit to Commence Soon—Wale Edun

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NNPC Crude Cargoes pricing

By Adedapo Adesanya

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has announced that a forensic audit of the Nigerian National Petroleum Company (NNPC) Limited would soon commence, but did not give a specific timeline.

He made this disclosure while speaking at the Nigerian Investor Forum, which is holding on the sidelines of the IMF/World Bank spring meetings in Washington D.C, the US, also attended by the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso.

He explained that the recent rejigging of the management of the NNPC was part of the cleansing the federal government has taken to audit the company

Addressing a group of investors drawn from renowned global financial institutions, including J.P. Morgan, the Minister outlined critical reforms the federal government has implemented to reset the economy and restore confidence.

Mr Edun told the foreign investors that the government, through its veracious reforms, have laid the foundation that would make the country the desired destination for private investors as he said the country is on the road to 7 per cent annual growth, calling for investments in infrastructure, manufacturing, and agriculture.

The Minister said the administration of President Bola Tinubu has implemented foundational reforms that are now yielding results, with the Nigerian economy expanding 3.84 per cent in Q4 2024 and 3.4 per cent overall for the year.

“Our goal is not just to maintain this momentum, but to accelerate it. We are targeting seven per cent annual growth, and we believe the policies we have implemented have laid the groundwork to achieve this,” he stated.

The finance minister further emphasized the significance of the reforms, noting they are “unprecedented” and have drawn praise from multilateral partners during ongoing discussions in Washington.

“We said we would do it, and now we have done it. This time, we’re staying the course,” Mr Edun added.

He noted that with macroeconomic stability gradually returning as reflected in narrowing budget deficits, improved trade balance, and a stabilizing exchange rate, adding that the government is now shifting its focus to targeted sectoral growth.

“We aim to close the food supply gap, not by importing more, but by enabling domestic producers to scale and innovate,” he said.

On infrastructure, the minister revealed the rollout of 90,000km of fiber optic cable to enhance digital connectivity, a move seen as critical to empowering Nigeria’s youth and tech entrepreneurs.

In addition, 4,000km of roads have been tendered for private sector participation, with the first 1,000km already signed off for delivery.

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Economy

Shippers Council Reiterates Promise to Boosting Trade

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By Adedapo Adesanya

The Nigerian Shippers Council (NSC) has reiterated its commitment to prioritising shipping activities and promoting importers and exporters in the country.

The Executive Secretary of the Council, Mr Pius Akutah, in a statement on Wednesday, said this after a familiarisation visit to the North East Zonal Directorate in Bauchi State.

The visit marked a strategic step in assessing the activities of the council in the region and reinforcing its role in trade facilitation and port economic regulation.

“The purpose of the visit was to promote regional integration in shipping activities and support exportation.

“This aligns with the current administration’s goal of enhancing the nation’s resources through the blue economy.

“We have had interactive meeting with stakeholders aimed at advancing shipping activities in the region and the role of shippers’ association in representing the interests of importers and exporters.

“The NSC is committed to improving ease of doing business,” he said.

On the Inland Dry Ports project in Bauchi, an initiative by the state government, Mr Akutah said it was laudable as it would attract both import and export activities to the area.

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