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2023 Budget approval: Buhari frowns at injection of N770.7bn projects

Published

1 year ago

January 4, 2023

NewsDirect

…Signs 2023 budget

…Budget rises to N21.83 trn

…We’re not rubber stamp, it’s all for the good of the country — Gbajabiamila

…Says no padding

By Moses Adeniyi

Although President Muhammadu Buhari signed the 2023 Budget passed by the National Assembly to him on Tuesday, yet he noted with critical attention the injection of projects that further raised the budget.

President Buhari on Tuesday signed the 2023 Appropriation Bill of N21.83 trillion along with the 2022 Supplementary Appropriation Bill into law at the Presidential Villa, Abuja.

He critically noted that the National Assembly introduced new projects into the 2023 budget proposal he submitted, allocating the sum of N770.72 billion.

The President also said that the parliament increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion.

Speaking at the signing of the eighth and final annual budget of his Administration, the President said the aggregate expenditures of N21.83 trillion, is an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion.

Buhari explained that the 2022 Supplementary Appropriation Act would enable the administration to respond to the havoc caused by the recent nationwide floods on the infrastructure and agriculture sectors.

As is customary, he said the Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act.

“We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.

“The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion and an unfunded deficit of N553.46 billion.

“It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.

“I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion,” he said.

Buhari said his decision to sign the 2023 Appropriation Bill into law as passed by the National Assembly was to enable implementation to commence without delay, considering the imminent transition process to another democratically elected government.

He, however, directed the Minister of Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes made to the Executive budget proposal, expressing the hope that the National Assembly will cooperate with the Executive arm of Government in this regard. He urged the National Assembly to reconsider its position on his proposal to securitise the Federal Government’s outstanding Ways and Means of balance at the Central Bank of Nigeria (CBN).

He said, “As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable her to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.

“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.

“Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3 per cent and the negotiated interest rate of 9 per cent and a 40-year repayment period on the securitised debt of the Ways and Means.”

To ensure more effective implementation of the 2022 capital Budget, President Buhari thanked the National Assembly for approving his request for an extension of its validity date to 31st March, 2023.

The President directed the Ministry of Finance, Budget and National Planning to work towards the early release of the 2023 capital votes to enable Ministries, Departments and Agencies to commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.

Reiterating that the 2023 Budget was developed to promote fiscal sustainability, and macroeconomic stability and ensure a smooth transition to the incoming Administration, the President said it was also designed to promote social inclusion and strengthen the resilience of the economy.

He pledged that adequate provisions have been made in the Budget for the successful conduct of the forthcoming general elections and the transition programme.

“As I mentioned during the presentation of the 2023 Appropriation Bill, the Budget was developed to promote fiscal sustainability, macroeconomic stability and ensure a smooth transition to the incoming Administration.

“The Budget was also designed to promote social inclusion and strengthen the resilience of the economy. Adequate provisions have been made in the 2023 Budget for the successful conduct of the forth-coming general elections and the transition programme,” he said.

On achieving revenue targets for the budget, the President directed MDAs and Government Owned Enterprises (GOEs) to intensify their revenue mobilisation efforts, including ensuring that all taxable organisations and individuals pay taxes due.

To achieve the laudable objectives of the 2023 Budget, the President said relevant Agencies must sustain current efforts towards the realisation of crude oil production and export targets.

“To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructural development.

“This, being a deficit budget, the associated Borrowing Plan will be forwarded to the National Assembly shortly.

“I count on the cooperation of the National Assembly for a speedy consideration and approval of the Plan,” he said.

On the Finance Bill 2022, the President expressed regret that its review as passed by the National Assembly is yet to be finalised.

“This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government. I urge that this should be done speedily to enable me to assent into law,” he said.

Present at the signing of the budget were the Senate President, Ahmad Lawan and the Speaker of the House of Representatives, Femi Gbajabiamila.

The President thanked the Senate President, the Speaker of the House of Representatives, and all the members of the National Assembly for the expeditious consideration and passage of the Appropriation Bill.

“As I mentioned during the presentation of the 2023 Appropriation Bill, early passage of the budget proposal is critical to ensure effective delivery of our legacy projects, a smooth transition programme and effective take-off of the incoming Administration.

“I appreciate the firm commitment of the 9th National Assembly to the restoration of a predictable January to December fiscal year, as well as the mutual understanding, collaboration and engagements between officials of the Executive and the Legislative arms of government.

“These have made the quick consideration and passage of our Fiscal bills possible over the last four years,” he said.

The President expressed the belief that the next Administration would sustain the early presentation of the annual appropriation bill to the National Assembly to ensure its passage before the beginning of the fiscal year.

“I firmly believe the next Administration will also sustain the current public financial management reform efforts, further improve the budgeting process, and particularly maintain the tradition of supporting its Appropriation Bills with Finance Bills designed to facilitate their implementation.

“To sustain and institutionalise the gains of the reforms, we must expedite action and conclude work on the Organic Budget Law for it to become operational before the end of this Administration,” he said.

“As this Administration draws to a close, we will accelerate the implementation of critical measures aimed at further improving the Nigerian business environment, enhancing the welfare of our people and ensuring sustainable economic growth over the medium- to long-term,” he added.

Speaking after, the Senate President, Ahmad Lawan assured that the National Assembly will work to ensure increase in funds for the government and reduce the rate of deficit in the budget.

“But that is not to say that, we should raise taxes that will be out of the roof to cause problems for our citizens. But I believe that as a National Assembly, in the next five months, we must be looking at increasing the funds available to the government and also ensuring that the deficit budget is minimised in the next assembly by the grace of God,” he said.

…We’re not rubber stamp, it’s all for the good of the country – Gbajabiamila

On his part, the Speaker of the House of Representatives, Femi Gbajabiamila denied any ‘act of padding or jerking up’ the budget, explaining that the lawmakers have done very well in meeting their constitutional mandate, as they don’t want to be seen as a “rubber stamp to the executive.”

“If you understand constitutional democracy, there are different layers of government and it’s called separation of powers. Ours is for us to receive proposals and that’s why they’re called proposals anywhere in the world.

“The National Assembly has done very well in meeting its constitutional mandate. It takes all arms of government to be on board to give a true working document for the country. The executive did everything they could; and we have even a wider view, a bird’s eye view of what’s going on in all the agencies. And we have also complemented what the executive has done. It’s all for the good of the country and that’s what we’ve done.

“It is now for the National Assembly or the legislature to collate all those proposals and look at what’s on the ground in the various constituencies. During the budget defense, we have ministries, departments, and agencies that come to talk to us and we looked at the reality on the ground and what they have before them. And whether or not they can actually execute their mandate as per their ministries and departments.

“It now behooves the National Assembly, where it dims to adjust figures, either downwards or upwards. And that’s exactly what we have done. The problem with the National Assembly is that you can’t win to lose. If you return the budget the exact way it is you’re called a rubber stamp. If you do what you’re supposed to do and adjust figures for the good of the country. You call it jacking up or inflation or padding,” Gbajabiamila said.

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Cybersecurity levy ill-timed, will impact adoption of digital transactions — Andersen

Published

17 hours ago

May 8, 2024

NewsDirect

…As CBN exempts 16 transactions

…SERAP alleges levy violates constitution, human rights regulations

Global financial advisory and tax firm, Andersen in Nigeria, has described the introduction of the National Cybersecurity levy as ill-timed.

The global firm noted that the new levy will negatively impact the adoption of digital transactions in the country.

The Central Bank of Nigeria (CBN) on 6 May 2024 issued a circular mandating all banks, mobile money operators, and payment service providers to implement a new cybersecurity levy, following the provisions laid out in the Cybercrime (Prohibition, Prevention, etc.) Amendment Act 2024 (“the Act”).

According to the Act, a levy amounting to 0.5 percent of the value of all electronic transactions will be collected and remitted to the National Cybersecurity Fund (NCF), overseen by the Office of the National Security Adviser.

According to the Apex Bank, Financial institutions are required to apply the levy at the point of electronic transfer origination. The deducted amount is to be explicitly noted in customer accounts under the descriptor “Cybersecurity Levy” and remitted by the financial institution.

They are also required to start implementing the levy within two weeks from the issuance of the Circular. By implication, deduction of the levy by financial institutions should commence from 20 May 2024. However, financial institutions are to make their remittances in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month.

Reacting via a comment seen by Nigerian NewsDirect, Andersen in Nigeria said, “The introduction of the new levy has elicited mixed reactions from stakeholders as it will inevitably increase the cost of doing business in Nigeria and may impact the growth in adoption of digital transactions.”

“While the government continues its drive to increase revenue, the introduction of this additional levy may appear ill-timed considering the current economic climate vis-a-vis the government’s commitment in the National Tax Policy of 2017 to reduce the number of taxes in Nigeria.”

The firm also opined that, “Financial institutions and payment service providers will also need to adjust their financial and operational strategies to accommodate and account for the new levy to ensure they remain compliant while managing additional costs of compliance.”

It added that business owners who rely heavily on digital transactions for receiving payment may see an increase in operational costs due to considerations on adjustments in pricing and cost transfer.

“It is therefore important for stakeholders and businesses to analyse the financial impacts of this directive on their cash flow.”

“In the meantime, Andersen will continue to monitor this space and provide updates where necessary,” the comment read.

However, the CBN listed 16 banking transactions exempted from the new cybersecurity levy.

The exemptions include; Loan disbursements and repayments, Salary payments, Intra-account transfers within the same bank or between different banks for the same customer, Intra-bank transfers between customers of the same bank, Other financial institutions’ instructions to their correspondent banks, Interbank placements.

Others include Banks’ transfers to CBN and vice versa, Inter-branch transfers within a bank,Cheques clearing and settlements, Letters of Credits, Banks’ recapitalisation related funding – only bulk funds movement from collection accounts, Savings and deposits including transactions involving long-term investments such as Treasury Bills, Bonds and Commercial Papers, Government Social Welfare Programs transactions e.g. Pension payments, Non-profit and charitable transactions including donations to registered non-profit organisations or charities, Educational Institutions transactions, including tuition payments and other transactions involving schools, universities or other educational institutions and Transactions involving the bank’s internal accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.

Reacting also, the Socio-Economic Rights and Accountability Project (SERAP) has given President Tinubu 48 hours to withdraw unlawful CBN directive imposing cybersecurity levy on Nigerians

The rights group claimed that the new levy violates the provisions of the Nigerian Constitution 1999 [as amended] and the country’s international human rights obligations and commitments.

It therefore urged President Bola Tinubu to use his “good offices to immediately direct the Central Bank of Nigeria (CBN) to withdraw the cybersecurity levy.”

SERAP also urged the President “to stop Mr Nuhu Ribadu and the office of the National Security Adviser (NSA) from implementing section 44 and other repressive provisions of the Cybercrimes Act 2024 as it flagrantly violates the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights and International Covenant on Civil and Political Rights to which Nigeria is a state party.”

SERAP urged him “to direct the Attorney General of the Federation and Minister of Justice, Mr. Lateef Fagbemi, SAN to immediately prepare and present a bill to amend section 44 and other repressive provisions of the Cybercrimes Act 2024 to the National Assembly so that those provisions can be brought in line with the Nigerian Constitution and the country’s international human rights obligations.”

In a statement today signed by SERAP deputy director Kolawole Oluwadare, the organisation said, “The Tinubu administration must within 48 hours withdraw the patently arbitrary and unlawful CBN directive purportedly imposing cybersecurity levy on Nigerians.”

SERAP said, “Section 44(8) criminalizing the non-payment of the cybersecurity levy by Nigerians is grossly unlawful and constitutional.”

The statement, read in part: “Our lawyer Ebun-Olu Adegboruwa, SAN, is already preparing the necessary court papers should the administration fail or neglect to act as recommended.”

“The administration must urgently take concrete and effective measures to ensure the repeal of section 44 and other repressive provisions of the Cybercrimes Act 2024.

“If the unlawful CBN directive is not withdrawn and appropriate steps are not taken to amend the repressive provisions of the Cybercrimes Act within 48 hours, SERAP shall consider appropriate legal actions to compel the Tinubu administration to comply with our request in the public interest.

“Withdrawing the unlawful CBN directive and repealing the repressive provisions of the Cybercrimes Act 2024 will be entirely consistent with president Tinubu’s constitutional oath of office requires public officials to uphold the provisions of the constitution, and the rule of law and abstain from all improper acts.

“The repressive provisions of the Cybercrimes Act 2024 are clearly inconsistent and incompatible with the public trust and the overall objectives of the Constitution. A false oath lacks truth and justice. The oath statements require the oath takers to commit to uphold and defend the Constitution.

“Section 14(2)(b) of the Nigerian Constitution of 1999 [as amended] provides that, ‘the security and welfare of the people shall be the primary purpose of government.

“The CBN yesterday has directed banks and other financial institutions to implement a 0.5 percent cybersecurity levy on electronic transfers on the basis of the section 44 44(2)(a) of the Cybercrimes Act 2024 purportedly imposing a “a levy of 0.005 equivalent to a half percent of all electronic transactions value by the business specified in the second schedule of the Act.

“The money is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).”

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UBA gross earnings rise by 110% in Q1, 2024

Published

17 hours ago

May 8, 2024

NewsDirect

United Bank for Africa Plc (UBA) has recorded a 110 percent increase in its gross earnings for its financial results for the first quarter ended March 31st, 2024.

The results showed a strong growth across key performance measures.

The Group’s results, which were released to the Nigerian Exchange Limited (NGX) on Friday May 3rd, 2024, saw outstanding year-on-year increases: Gross Earnings rose by 110 percent, from N271.1billion to N570.2 billion; Interest Income grew by 130 percent, to N440.7 billion. Operating Income increased by 115 percent, from N175.7 billion in 2023, to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 Full Year Audited Financials, UBA again saw Profit Before Tax rising significantly by 155 percent from N61.7 billion in Q1 2023, to N156.34 billion in Q1 2024; while Profit After Tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165 percent year-on-year.

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said the Group delivered strong first quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification and effective risk management and governance.

He said, “Our record Q1 profit before tax was delivered with triple digit gross earnings growth, supported by very strong interest and non-interest income. Fees and Commissions rose by 118% year-on-year on the back of improved efficiencies and continued digital adoption. This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8 percent.”

“The Group’s balance sheet grew steadily with Total Assets increasing by 23 percent to N25.4 trillion. Customer deposits closed at N18.4 trillion, recording a 23 percent increase year-on-year, largely attributed to growth in current accounts and savings accounts.

“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”

Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance continued to deliver.

He said, “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions. We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk adjusted revenues and cost discipline, while maintaining very sound asset quality.”

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets,” Nwaghodoh stated.

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Rivers APC urges Assembly members to impeach Gov. Fubara

Published

17 hours ago

May 8, 2024

NewsDirect

…As Fubara rolls out road projects ahead of one year in office

By Barth Ndubuwah, Port Harcourt

The Rivers State chapter of the All Progressives Congress (APC) has urged its members in the state House of Assembly to initiate the impeachment process against Governor Siminalayi Fubara.

Chairman of the APC in Rivers State, Chief Tony Okocha, said in a press conference in Port Harcourt on Tuesday that the impeachment process was necessary because the governor “has insulted the sensibility” of President Bola Ahmed Tinubu, who waded in to resolve the lingering crisis in the state.

The APC Chairman remarked that the impeachment process was necessary in view of the Governor’s blatant refusal to honour the peace agreement initiated by President Bola Ahmed Tinubu between Fubara and the Minister of the federal capital territory, FCT, Nyesom Wike, some months ago and his recent declaration of the lawmakers’ seats vacant.

Recall that on Monday, Governor Fubara had declared, for the first time since the commencement of the crisis, that the APC lawmakers do not exist in the eyes of the law, adding that “those groups of men who claim that they are Assembly members, they are not existing… their existence and whatever they have been doing is because I allow them to do so. If I don’t recognize them, they are nowhere.”

Meanwhile, as the Gov Siminalayi Fubara-led administration turns one year in office on May 29/5/2024, the Rivers State government has rolled out a 20-day action-packed programme commencing from 14/5/2024 to mark the period.

Addressing the media Tuesday in Port Harcourt, the Chairman of the Planning Committee and Secretary to the State Government (SSG), Dr Tammy Danagogo said the event will commence on 14/5/2024.

According to him, the old Bori Road will be commissioned that day to kick-start the anniversary.

The next day being 15/5/2024, the Andoni Section of the Unity Road will be inaugurated, according to him.

Conversely, the N80bn 31 km Elele- Omoku Road will be flagged off on 16/5/2024.

On 17/5/2024, the N21bn Emohua- Kalahari Road will be commissioned and on 20/5/2024. Egbeda internal roads will be inaugurated.

Other activities he said include Commissioning of Port Harcourt Electrical village, Phase 1, Rivers Economic Investment Summit, 2024. These events will be held on 21,22 and 23/5/2024 respectively.

Flagoff of Okania-Ogbogoro Road, Phase 2, and Trans- Kalahari Roads shall take place on 24 and 30/5/2024 respectively, while Omoku-Egbema dualised Road shall be commissioned on 25/5/2024.

“Her Excellency,wife of the Governor, Mrs Valerie Fubara as part of the one year anniversary shall host Rivers State children to a party on 27/5/2024 being Children’s Day. And on the evening of that same day,there will be a State Banquet and to sum it up,a book on Rivers State will be unveiled.

“Launching of youth development program and accountability forum, where the media and stakeholders will be given the opportunity to ask the Governor and his Cabinet questions have been slated for 28 and 29/5/2024.

“On 31/5/2024 and 1/6/2024, certificates will be presented to selected Traditional rulers,coupled with praise night respectively,” the SSG said.

Rivers International Marathon he said will equally take place on 1/6/2024.

“The event will be rounded off on 2/6/2024 with a thanksgiving at St Paul’s Anglican Church, ABA Road,” he said.

Dr Danagogo emphasised that Governor Fubara’s administration is poised to complete all its projects before leaving office. He noted that these are just a few projects chosen by the Governor to mark this auspicious occasion, stressing that the administration has done a lot more within the period under review.