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Economy : Senate ‘ll be rigid on increased revenues to reduce budget deficit, borrowings – Lawan

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SENATE-PRESIDENT
Senate President Ahmad Lawan
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Senate President  Ahmad Lawan, on Monday, said that revenue generating agencies of government are capable of generating and remitting N3 trillion naira annually to the coffers of the federal government if efforts are made to cut down on wasteful spendings.

Lawan made this known in an address delivered to declare open an interactive session “on the need to improve internally generated revenue of the Federal Government of Nigeria and Revenue Projections of the Agencies as Contained In the Appropriation Act 2020.”

The meeting was between the Senate Leadership and Members of the Committee on Finance and Revenue Generating Agencies of Government.

The Senate President, in his speech, said the purpose of the meeting was to explore means of increasing government revenues.

According to him, one of such ways was for the National Assembly to be rigid on increased revenue to cut down on the country’s budget deficit and borrowings, as well as prevent wasteful expenditures by agencies of government.

He assured that the upper chamber would provide the needed support through legislation to ensure that revenue agencies perform to meet and surpass their targets.

He said, “In 2022, the National Assembly assumed and rightly so, that our government owned enterprises can generate up to N3 trillion if we are of the mindset that we can achieve that and, of course, ensure that we oversight to stall any possibility of unwarranted expenditures by agencies of government.

“But that does not mean in any way that it is going to be some kind of investigation on what you do, but an encouragement of what you need to do.

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“In this meeting and subsequent ones, there should be no holds barred on discussions.

“Where an agency feels it is encumbered in any way from achieving its target, it should say so, so that we are able to prescribe the right solutions for it to perform.

“As a National Assembly, let me say that the Senate particularly will be stiff on generating more and more revenue.

“We will be rigid, we will continue to insist, because we believe that this is one sure and guaranteed way of reducing our deficit and borrowing.

Lawan explained that the drive by the upper chamber for more revenues to the coffers of government, would enhance the economy and facilitate infrastructural development.

“This Committee is modified, because the leaders of the Senate believe that we can do far better and we have seen signs when last year some of the agencies performed beyond expectation.

“So, it is an opportunity for us to save and enhance our economy and, of course, make Nigeria achieve more infrastructural development which is the goal of this administration and every Nigerian.

“We believe that when you (revenue agencies) generate the money, we (National Assembly) appropriate it.

“Prudence is of essence here, when we spend our money. And when we borrow, like the National Assembly has always tried to do, we borrow to treat specific projects and programmes of government”, the Senate President said.

Chairman of the Committee on Finance, Senator Solomon Olamilekan Adeola, in his welcome address, lamented that there was insufficient funds for the implementation of policies and projects captured in the 2022 budget of the federal government.

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He explained that the funds were derived partly from the revenue generated by the government owned enterprises and other independent revenues sources of the federal government.

According to the lawmaker, “there is an urgent need for all hands to be on deck on revenue generation for government, as well as prevent misuse and leakages of such revenue for frivolous purposes not sanctioned by the laws of the National Assembly.”

He advised that for government to reduce and eliminate deficit budgeting associated with the nation’s budget over the years, effort must be made to minimise borrowing to fund projects.

Revenue agencies present at the interactive session include: National Agency for Science and Engineering Infrastructure, the Federal Inland Revenue Service (FIRS), National Steel Raw Materials Exploration Agency, Nigerian Postal Service, Lagos University Teaching Hospital, and Nigeria Customs Service.

Others were the Nigeria Immigration Service, Nigeria Security and Civil Defence Corps, Nigeria Prisons Service, Maritime Academy of Nigeria, National Agency for Food and Drug Administration and Control (NAFDAC), and Abuja Geographic Information Systems (AGIS).

Also present were the Federal Capital Territory Administration,  Energy Commission of Nigerians, Administrative Staff College of Nigeria, Nigerian Export Import Bank (NEXIM), Nigerian Ports Authority and the Nigerian College of Aviation Technology, Zaria.

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Protests In Abuja Demanding Investigation Into Guaranty Trust Bank Operations

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A protest was held today at the Police Force Headquarters in Abuja, organized by the Coalition of Civil Society for Good Governance in Nigeria, calling for an urgent investigation into serious allegations against Guaranty Trust Bank Limited (GTB). The bank, under the leadership of Segun Agbaje, is facing accusations of corruption, money laundering, unsolicited account openings, and more.

The Chief Convener of the coalition, Comrade Tijani Usman addressed the crowd, highlighting the pervasive issue of corruption that has plagued Nigeria’s socio-economic landscape since 1960. He emphasized the critical role of the banking sector in economic development and criticized the lack of action from regulatory and law enforcement agencies regarding GTB’s alleged infractions.

“The allegations against GTB are serious and cannot be ignored,” Usman stated. He urged the Nigeria Police Force to prioritize these claims and conduct a thorough investigation to hold accountable those responsible for any wrongdoing.

Participants in the protest voiced their concerns about recent operational failures at GTB, particularly a prolonged outage of the bank’s payment systems, which resulted in substantial losses for customers. The coalition called for the bank’s management to focus on resolving these critical issues instead of engaging in activities that undermine trust.

The protesters also appealed to the Central Bank of Nigeria and the Economic and Financial Crimes Commission to take a proactive stance in investigating the allegations and ensuring accountability within the banking sector.

As the coalition continues its peaceful demonstrations, they remain steadfast in their commitment to advocating for justice for affected customers and investors. This protest reflects a growing demand for greater transparency and accountability in Nigeria’s banking system, as civil society seeks to foster an environment where corruption is actively challenged and addressed.

The response from authorities to this protest may significantly impact the future governance of financial institutions in Nigeria, highlighting the necessity for reform and vigilance in the fight against corruption.

 

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Renewable Energy Stakeholders Advocates Sustainable Financing Model

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Stakeholders in the renewable energy sector have called for a sustainable financing model to ensure attainment of Nigeria’s Energy Transition Programmes (ETP).

The stakeholders made the call in Abuja on Tuesday at a stakeholders engagement on the nation’s energy transition programme.

They were of the view that financing, especially private sector finance mobilisation was key in execution of ETP programmes in Nigeria.

The programme with the theme titled “Maximizing Just Energy Transition Opportunities through ban Inclusive Country Platform was organised by the Yar’ Adua Foundation.

Mr Patrick Okigbo of Nextier Advisory Energy Transition Limited, an energy transition advocated for a funding model that was sustainable.

He said the nation could adopt model like the petroleum development funding model where funds from petroleum proceeds could be dedicated to drive ETP.

He also said the sustainable financing could only be attained with the support of the private sector, saying that government can not totally fund the ETP.

“here should be clear financial and comprehensive plan to attract private financing.”

According to him, energy security should be considered as critical along side national security in Nigeria.

He said efforts should be made to place the people and the communities at the centre of ETP.

“To achieve energy transition in Nigeria, we must place the people and communities at the heart of every activity and discussion of energy transition programmes, engaging them to understand their needs.

“Creating community based ETP strategy to address negative impact in ETP.

“We need to strengthen government commitment and leadership on ETP,with strong political will, more commitment, more action and less talks.”

He said government must work toward addressing the micro economic uncertainties , address infrastructure challenges and ensure provision of infrastructure for renewable energy development.

“We must drive stakeholders collaboration to minimise resistance and foster trust.*

Mr Olumide Onitekun of African Policy Research Institute(APRI) advocated the use of just energy transition for ETP in Nigeria.

He said just energy transition was all about defunding fossil fuels in a way that reduces inequality, while prioritising economic, racial, and gender justice.

He, however, said the plan required political will, private sector collaboration and programmed funding approach.

Earlier, the Director Partnership and Development ,Yar’ Adua Foundation, Mr Amara Nwankpa said the ETP , while ambitious does not align with a least cost pathway to total electrification.

He said there was need to envision a different future , one where renewable energy would drive economic growth, job creation and expanded energy access.

High point of the event was a panel discussion on ensuring an inclusive and equitable energy transition opportunities and challenges.

Others were presentation of stakeholders commitments on next steps to energy transition programmes in Nigeria.

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Nigeria Officially Commences Crude Oil Sales In Naira

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Nigeria has officially commenced the sales of crude oil and refined petroleum products in naira, the Federal Government has announced.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Saturday said that in line with the Federal Executive Council (FEC) directive, the sale of the products in naira commenced on October 1.

This was disclosed in a statement by the Director of the Information and Public Relations, Ministry of Finance, Mohammed Manga.

“Following a meeting of the Implementation Committee, Chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders,” the statement read.

“The meeting brought together prominent figures, including the Honourable Minister of State, Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the management of the Nigerian National Petroleum Company (NNPC), led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).”

Manga noted that the strategic initiative and bold step taken by President Bola Tinubu-led administration is expected to have a lasting impact on Nigeria’s economy, enhancing growth, stability, and self-sufficiency.

He added that the country continues to navigate the complexities of global markets, and the strategic move positions Nigeria for success in the future.

The move comes about nine weeks after the FEC approved a proposal by Tinubu directing the NNPC to sell crude oil to Dangote Petroleum Refinery and other refineries in naira.

The Federal Government had said the sale of crude oil to the Dangote refinery and other refineries in naira would commence on October 1.

The policy aims to stabilise pump prices, potentially resulting in lower and more predictable fuel costs for consumers.

With transactions in Naira rather than dollars, the pressure on foreign exchange reserves would ease, leading to the stabilization of the dollar-Naira exchange rate and control inflation.

It would also increase the capacity of local refining that will in turn reduce dependence on imported fuel, saving billions of dollars that can be reinvested into other areas of the economy.

The government’s move would also boost local refining capacity to strengthen Nigeria’s energy security by ensuring a more reliable and self-sufficient fuel supply.

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