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Senate to engage Finance Minister on 2017-2020 Economic Recovery Plan

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The Senate has mandated six of its Committees to engage the Minister of Finance, Zainab Shamsuna Ahmed, on the Federal Government’s elapsed Economic Recovery and Growth Plan (ERGP) between 2017 and 2020.

The Committees are: National Planning; Banking, Insurance and other Financial Institutions; Marine Transport; Land Transport; Works and Power.

The decision to engage the Finance Minister was reached amid a resolution by the Upper Chamber after it considered a motion “on the need to critically assess the performance of the Economic Recovery and Growth Plan (ERGP) 2017-2020.”

The motion was sponsored by Senator Abdu Suleiman Kwari (APC, Kaduna North).

In his presentation, Senator Kwari noted that the four year Economic Recovery and Growth Plan (ERGP) 2017-2020, which was the source document of Nigeria’s four years Appropriations Act had elapsed.

He recalled that President Muhammadu Buhari, launched the Plan in April of 2017 to ensure the actualization of a sustainable inclusive growth of the economy.

According to the lawmaker, “the Plan was targeted at achieving a structural economic transformation with emphasis on improving the efficiency of both the public and private sectors of the Nigerian economy;

He added, “Further aware that the key objectives of the plan were to increase our national productivity, achieve a sustainable diversification of production, significantly grow our economy by 7 percent by the year 2020, maximize the welfare of our citizens and attain food and energy security;

“Worried that the four-year plan, which has now elapsed, cannot be said to have met our desired socio-economic aspiration;

“Believes that there is need for stock taking to critically assess the performance of the Economic Recovery and Growth Plan in order to ascertain whether the Plan has met the desired goals now that it has technically come to an end;

“Further believes that in taking stock, it is imperative to benchmark the implementation outcomes of the Plan in terms of the following indices to determine: real growth in the agricultural, solid minerals and energy sectors of the economy; SMEs growth as laid out in the plan; and positive impact on our industries and manufacturing sectors.”

Others are to assess investment on the human capital; the number of jobs and wealth created; investments on health and education sectors; investment and progress on our national infrastructure; progress made by the Presidential Enabling Business Environment Council (PEBEC); the digital led economy targets and the anti-corruption fight/recovery of stolen assets; the progress of the fight against insecurity; determine the fiscal and other macroeconomic policies as benchmarked in the ERGP; and the level of implementation of the Central Bank of Nigeria interventions in all the sectors.

Senator Kwari lamented the negative impact of the COVID-19 pandemic on the world economy, as well as its consequent effects on the Nigerian economy, which, according to him, had adversely affected the implementation of the Plan in 2020.

He  stressed that it is the solemn and constitutional duty of the National Assembly to assess the performances of the budgets as against the line items and objectives of the ERGP, on which it was based.

Accordingly, the Senate mandated the Committees on National Planning; Banking, Insurance and Other Financial Institutions; Marine Transport; Land Transport; Works and Power to interface with the Hon. Minister of Finance, Budget and National Planning on the performance of the ERGP, whose life span has elapsed and report back on the way forward within four weeks.

Contributing, Senator Adetumbi (APC, Ekiti North), said the move by the upper chamber seeks to “take stock of what we have done under ERGP in order to ascertain future plans and learn lessons from existing ones.”

Senator Abdullahi Ibrahim Gobir (APC, Sokoto East), said the assessment was imperative to determine whether or not Nigeria had made progress or failed in terms of growing the economy.

“We have to look at the Economic Team, how qualified they are to monitor some of these projects. If they are not qualified, we remove them and then bring qualified people.

“Because the Federal Government cannot have a plan for four years and yet we cannot have information about whether that plan has failed or succeeded. I think we have to find out some of these issues”, he said.

On his part, the Deputy Whip, Senator Aliyu Sabi Abdullahi (APC, Niger North) said, “the issue of national planning is something should always be in the front burner of our discuss.

“Attempt in the past to have a very concise National Planning framework has always met with some level of either policy flip-flop or instability.”

“Let me say that the ERGP which was meant to be operated for four years was actually coming at the heels of the recession we suffered in 2016 and, I think, the ERGP was packaged bearing in mind the issues that led to that recession.

“Having operated that from 2017 till date, let’s not forget that government came up with what they called Economic Sustainability Plan and, I think, the National Assembly played a critical role in how these plan was packaged, bearing in mind that the ERGP was not going to perform the functions it was meant to do”, he added.

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Business & Economy

Market Patronage Declines as Rising Prices Hit Ekiti Traders

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Traders in Ekiti State have appealed to governments at all levels to take urgent steps to address the rising cost of goods and ease the economic burden on citizens.

 

 

Our correspondent, Oluwaseun Adebolu, who visited Market places in Ado-Ekiti to assess the situation, said that many traders called for increased government support to improve business activities and enhance the welfare of residents.

 

 

The traders commended the Ekiti State Government for its efforts to promote local businesses but stressed that additional interventions targeted at traders and families would further improve their standard of living.

 

 

They expressed concern over the persistent increase in the prices of goods and commodities, attributing the trend to high transportation costs and the impact of the removal of fuel subsidy on the economy.

 

 

According to the traders, many essential items that were once affordable have become increasingly expensive, making it difficult for both traders and consumers to cope with current economic realities.

 

 

They also noted a shift in consumers’ buying habits, explaining that many customers now prefer shopping in markets closer to their homes to reduce transportation costs.

 

 

The traders further lamented a decline in market patronage, saying sales have dropped significantly compared to previous years due to reduced purchasing power.

 

 

They urged the government, relevant agencies, and other stakeholders to introduce measures such as palliatives, soft loans, and transportation subsidies for traders to cushion the effects of the economic hardship and stimulate commercial activities across markets in the state.

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FG Dismisses Reports of New Telecoms and Fuel Taxes, Says No Such Plans Under Consideration

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President Bola Ahmed Tinubu
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The Federal Government has dismissed reports claiming that it has introduced or is planning to introduce new taxes on telecommunications services and petroleum products.

The clarification came following media reports based on the recent International Monetary Fund (IMF) Article IV Consultation Report on Nigeria. The reports suggested that the IMF recommended extending Value Added Tax (VAT) to fuel products and introducing excise duties on telecommunications services as part of efforts to boost government revenue and fund development projects and social programmes.

However, in a statement issued on Wednesday by the Head of Information and Public Relations Unit of the Federal Ministry of Finance, Efe Ovuakporie, the government said the reports were misleading and did not reflect its current policy position.

According to the ministry, the IMF report merely contains the Fund’s assessment of Nigeria’s economy and recommendations for consideration by government authorities. It stressed that such recommendations are not binding and do not automatically become government policy.

The statement explained that all decisions relating to taxation in Nigeria are made through established constitutional and legislative processes and are guided by the country’s economic priorities and prevailing realities.

The Federal Government also clarified that the existing VAT waiver on petroleum products remains in force and has not been withdrawn.

It further explained that although current legislation provides for a fuel surcharge, such a charge can only be implemented through a ministerial order and official publication in the government gazette. The ministry stated that no such process is currently being considered.

According to the government, the continued suspension of these charges has helped reduce the impact of fluctuations in global energy prices on households and businesses while keeping domestic fuel prices relatively stable.

On telecommunications services, the government noted that the excise duty introduced before 2023 has already been repealed under the new tax laws and is no longer applicable.

The ministry therefore urged Nigerians to disregard reports suggesting that fresh taxes are being planned for either the telecommunications or petroleum sectors, describing such claims as inaccurate.

The government reiterated its commitment to economic reforms aimed at promoting growth, improving revenue collection, and creating a more attractive environment for investment and job creation.

It added that its focus remains on expanding economic activities, blocking revenue leakages, and improving efficiency in public finance management rather than imposing additional tax burdens on citizens.

The statement assured Nigerians that any future tax measures, if necessary, would be officially announced through appropriate government channels and implemented strictly in accordance with the law.

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Business & Economy

NERC Orders DisCos to Compensate Band A Customers for Power Supply Shortfalls

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The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls recorded between February and March 2026.

In a public notice issued on Wednesday, the commission said the special compensation scheme became necessary following significant electricity generation deficits across the Nigerian Electricity Supply Industry (NESI), which prevented some DisCos from meeting the minimum service commitments required for Band A customers.

According to NERC, the supply disruptions were largely caused by inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the distribution companies.

The regulator explained that Band A customers are entitled to a minimum of 20 hours of electricity supply daily. It noted that where a Band A feeder recorded an average daily supply of between 18 and 20 hours during the affected period, the existing compensation framework under Addendum No. NERC/2024/003 would continue to apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

However, NERC stated that Band A feeders that received less than 18 hours of electricity supply per day between February and March 2026 would not be downgraded despite failing to meet the service threshold. Instead, customers connected to such feeders would receive special compensation.

Under the approved arrangement, Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to their feeder. MD customers, on the other hand, will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.

The commission further directed that prepaid customers should receive their compensation through electricity token credits, while postpaid customers should benefit through direct bill adjustments.

To ensure transparency, NERC instructed DisCos to clearly communicate the value and period of the compensation to affected customers. The regulator also prohibited distribution companies from using the compensation credits to offset any existing customer debts.

Reaffirming its commitment to consumer protection, NERC said it would closely monitor the implementation of the directive and verify compliance across all distribution companies to ensure that eligible customers receive the compensation due to them.

The commission added that the measure is aimed at safeguarding consumer interests while maintaining the stability and sustainability of Nigeria’s electricity market.

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