Connect with us

Business & Economy

Budget 2022: Nigerian Army seeks exemption from envelope allocation system

Published

on

Chief of Army Staff (COAS), Lt.-Gen. Farouk Yahaya
Share

The Chief of Army Staff (COAS), Lt.-Gen. Farouk Yahaya, on Wednesday, sought for exemption of the Nigerian Army from the budget ceiling or envelope allocation system to Ministries Departments and Agencies (MDAs).

He made the appeal when he appeared before the Senate Committee on Army for budget defence.

While noting that the army was committed to securing the territorial integrity of the country from any violation, the COAS said if the army was taken off the envelope system, it would enable it carry out its operations more effectively.

Yahaya, however, said that the proposed budget for the army for the 2022 budget is N710 billion.

“The sum of N642.7 billion only should be approved for Nigerian Army Personnel Emolument for Year 2022 Budget.

“The sum of N29.6 billion only should be approved for overhead budget and N37.6 billion for Capital Budget.

“The National Assembly should cause the Federal Ministry of Finance, Budget and National Planning to begin the release of Year 2022 Nigerian Army Capital Budget in the First Quarter of 2022.”

He, however, said that of the figure, the ministry’s budget ceiling reduced it to a total sum of N579 billion.

He said that the reduction would impede the capacity and tempo of the Nigerian Army in carrying out its constitutional duties particularly the ongoing war against Boko Haram Terrorists and other criminalities across the country.

“I passionately appeal to this committee to impress it on the ministry of finance, budget and national planning to begin the release of Year 2022 Nigerian Army Capital Budget in the First Quarter of 2022.

“This will help the Nigerian Army to rehabilitate dilapidated accommodations in over 138 barracks and training facilities across army units/formations.

“It will also help in procuring the needed equipment and platforms to prosecute the war against terrorism and other criminalities across the country.”

He noted that adequate funding would help the army to invest in needed technology and platforms to effectively discharge its constitutional mandate.

The chief of army staff further called for a review of the subsisting envelope budget system which over the years had been a major challenge in adequately funding the army for its constitutional duties.

After a closed-door session, Chairman of the Committee, Sen. Mohammed Ndume said that the committee looked at the 2021 budget performance and it was satisfied so far with what the military had presented.

“Looking at the budget vis a vis what is being allocated to the Nigerian Army, we find this under the circumstances we are operating grossly inadequate.

“We asked the chief of army staff what is happening; he mentioned the fact that the Nigerian Army have to operate within the envelope.

“The committee is in agreement that you can’t be facing security challenges and putting the security agencies in envelope while the problem is not already in the envelope.

“Or you can’t say the budget of the security agencies will have a ceiling. After all, the problems that we have are already above the ceiling. So you need to actually give the military what they need because there is no price tag for peace,” Ndume said.

He said that the committee would invite the Minister of Finance, Budget and National Planning Zainab Ahmed to tackle the issue of budget envelope for the Nigerian Army.(NAN)

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business & Economy

FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

Published

on

Power Station and Meters
Share

 

The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

Continue Reading

Business & Economy

Oyedele Warns Against New Taxes, Urges Governments to Explore Revenue Alternatives

Published

on

President Bola Ahmed Tinubu
Share

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments against imposing new taxes or increasing the tax burden on vulnerable citizens and productive sectors amid economic pressures.

Oyedele spoke on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand, where he presented the communiqué of the Intergovernmental Group of Twenty-Four (G24), which he chairs.

The minister said governments should prioritise identifying areas of savings, improving revenue mobilisation and strengthening fiscal management rather than introducing additional tax burdens that could further strain households and businesses.

“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” he said.

Oyedele made the remarks while responding to questions on how developing countries could reduce debt-servicing costs without cutting essential public expenditure.

He urged governments to look inward for savings and explore more efficient ways of generating revenue while protecting vulnerable populations from further financial pressure.

On public borrowing, the minister said debt financing remained necessary to support economic growth but stressed that borrowed funds should be deployed to stimulate job creation and promote inclusive development.

He noted that governments should prioritise limited public resources for essential services, including healthcare and education, while leveraging private capital to support other investment needs.

Oyedele also cautioned against treating taxation and borrowing as mutually exclusive options, explaining that both have economic implications and must be carefully balanced.

According to him, excessive taxation of vulnerable households could reduce their capacity to afford basic necessities, including food, healthcare and education.

He described public debt as a future tax burden, emphasising the need for governments to adopt fiscal policies that balance present revenue needs with long-term economic sustainability.

“Debt is future taxes, so it’s not one or the other. It’s to strike a balance, bearing in mind ultimately that the essence of tax and of debts is to cater for the people,” he said.

The minister’s remarks underscore the need for developing economies to strengthen domestic revenue mobilisation, improve public spending efficiency and manage debt sustainably without undermining household welfare or productive economic activities.

Continue Reading

Business & Economy

Over 67,000 Nigerians Benefit From Consumer Credit Scheme — Tinubu

Published

on

President Bola Ahmed Tinubu
Share

 

President Bola Tinubu has said that 67,512 Nigerians across 25 states and the Federal Capital Territory (FCT) have so far benefited from credit backed by the National Credit Guarantee Company (NCGC).

Tinubu disclosed this on Monday in a series of posts on his official X account as Nigeria prepares to celebrate its 66th Independence Day.

According to the President, the NCGC has issued ₦21.59 billion in guarantees, enabling participating financial institutions to provide ₦46.95 billion in loans.

He said 11,374 of the beneficiaries are women, while 33.5 per cent are first-time formal borrowers.

Tinubu noted that more than 22,000 Nigerians had entered the formal credit system for the first time through the scheme, giving them an opportunity to build credit records that could improve their access to future loans.

The consumer credit scheme was launched in July 2026 by the Nigerian Consumer Credit Corporation (CREDICORP), in partnership with the Federal Ministry of Communications, Innovation and Digital Economy.

The President said the initiative was part of his campaign promise to move Nigeria towards a credit-based economy and make financing more accessible to individuals and businesses.

He said CREDICORP enables working Nigerians to access consumer credit, while the National Education Loan Fund (NELFUND), Bank of Industry and Development Bank of Nigeria provide financing in other sectors.

Tinubu explained that the NCGC was established to reduce the risks faced by financial institutions when lending to businesses and individuals without sufficient collateral or credit history.

He said the company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.

The President added that businesses supported through the NCGC scheme were estimated to have created 661,291 direct and indirect jobs.

He said the impact of the scheme showed how government reforms could translate into economic opportunities for Nigerians.

“Our reforms laid the foundation. Credit gives Nigerians the means to build on it,” Tinubu said, adding that the Federal Government would continue to expand access to credit across the country.

He described the development as evidence of his administration’s efforts to fulfil its campaign promises, saying, “Promise made, promise kept. We are moving from reforms to opportunities. Nigeria First.”

Continue Reading