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How FG Will Finance 2021 Budget – Osinbajo

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images 52 1 How FG Will Finance 2021 Budget - Osinbajo

FG prefers concessionary loans
Government may sell three plants
…N19.3bn earmarked as security votes for DSS, NIA, NSA, others
Vice President Yemi Osinbajo on Saturday shed light on the 2021 appropriations, saying the Federal Government would finance the budget with concessionary loans instead of commercial facilities.
He ruled out the possibility of patronising Eurobond.
He said concessionary loans attract between 1.5% and 2%, and have a longer tenor than commercial loans.
Osinbajo, who fielded questions from some editors at the Presidential Villa, described borrowing as an important part of financing budget, saying that economic growth would be difficult for Nigeria if the government did not borrow to develop infrastructure and create jobs.
He hinted that the government would sell some assets, including three power plants – Afam III, Aba Electricity Distribution Company and Yola Electricity Distribution Company.
The process for the sale of Yola Distribution Company has already been concluded.
Osinbajo also unfolded plans by the government to build 300,000 houses within 12 months as part of the Economic Sustainability Plan (ESP) of the Buhari administration.
He said the Petroleum Industry Bill (PIB) would determine the fate of the Nigerian National Petroleum Corporation (NNPC).
On the government’s plans to stimulate the economy, especially with the 2021 budget, the Vice President said: “Borrowing is an important part of financing budget. It is not particularly bad.
“An individual will say cut your coat according to your size. But for a nation, you are looking at more of cutting your coat according to your vision.
“You must have a vision, but between your vision and resources, there will always be a gap. So, there will always be a need to borrow.
“The main issue is: are you borrowing for what purpose? In this government, a lot of the foreign borrowing has been focused on infrastructure. All of this is to build an economy not only for today but for the future.
When we borrow for infrastructure, we create jobs and opportunities immediately. The moment you begin to invest in infrastructure, you create jobs.
“We are not likely to explore the Eurobond market; we are looking at concessionary financing which has an interest rate of 1.5% to 2% or even less. For 2021, we are looking at concessionary financing.”
He said the planned sale of some plants was part of the sustenance of the nation’s privatisation policy.
“There are three assets of the NIPP being considered for sale. We started considering three plants but that process was truncated by developments between 2018 and 2019,” he said.
He added: “We intend to look at all possible revenue generation sources but sale of assets is not a priority.”
Concerning the ESP, Osinbajo said: “I think there is wide variety of measures to stimulate the economy.
“The whole point of ESP is to get as many people back to work. We also want to make sure we use local resources. That is the only way to stimulate the economy.”
On the Mass Housing Scheme, Osinbajo said: “A part of the N2.3 trillion for ESP has been dedicated to low-cost housing. We have asked state governments to give us land free. We are building houses that will not exceed the value of N2 million.
“We are building 300,000 houses in 12 months. It is a very aggressive target, but we are hopeful of getting it done.
“We have about 12 states that have given us land. We insist on locally produced materials such that each site will be a place where people are producing.”
Asked about the proposed unbundling of NNPC, Osinbajo said: “We are all awaiting the PIB. It will determine what will be the right approach.”
N19.3bn earmarked as security votes for DSS, NIA, NSA, others
The Federal Government plans to spend the sum of 19,316,524,954 as security votes in 2021.
The said sum will be shared by the office of the National Security Adviser (NSA) which is expected to receive 5,400,000,000; the Defence Intelligence Agency (DIA) N4, 370, 510,916; and the Nigerian Army N4, 187,780,938.
In the budget, security votes are captured under recurrent items, meaning that the allocations will not likely be tampered with by the National Assembly during the budget review.
Others who will also get direct security votes from the budget are the Department of State Services (DSS), 1,800,000,000; Ministry of Defence (MOF), 1,520,000,000; Nigeria Air Force, 1,204,099,768; Nigeria Navy, 520,000,000; Defence Headquarters, 200,000,000 and Nigeria Intelligence Agency (NIA), 114,133,332.
Apart from these security votes in the budget, the federal government has offered to spend a lot of money on internal security in the new year, according to the budget breakdown released on Friday by the Budget Office of the Federation (BoF).
The Presidential Air Fleet (PAF) will not be buying new aircraft for the Presidency in 2021, but will engage in upgrades and repairs of old presidential air fleets.
In 2021, the PAF will carry out mandatory upgrade and installation of live TV and internet service on BBJ (5N-FGT) at a cost of 630,000,000; purchase new AW 139 helicopter gearbox at 1,650,020,000; comply with the mandatory upgrade on PAF aircraft at 1,800,000,000.
The PAF plans to overhaul the President’s Gulfstream G550, Falcon 7X and CL605 aircraft engines at a cost of 2,400,000,000 and overhaul the President’s Challenger 605 and Hawker 4000 aircraft landing gears at 1,100,543,000.
On the part of the armed forces and the supervising Ministry of Defence (MOD) Headquarters, the ministry will spend 189,367,410 on anti-personnel landmine demining in contaminated areas in the North East.
The ministry will also spend another 23,168,132 on verification/valuation for compensation of lands acquired by the Armed Forces of Nigeria; 50,000,000 on Armed Forces Remembrance Day Celebration and 45,000,000 to renovate three cemeteries in three geo-political zones.

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Protesters Launch Soro Soke Online Radio

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images 61 2 Protesters Launch Soro Soke Online Radio

‘Soro Soke’ is a Yoruba statement which means ‘Speak upThe establishment of Soro Soke radio by the #EndSARS protesters is urging everyone to speak up, air their views and grievances against any unjust systemSoro Soke radio which has gone live will also serve as a platform to report missing persons.

Soro Soke radio can be accessed by clicking on the link below:
https://s4.radio.co/s99d55c85b/listen

The protest began to fight the wrongs of the Special Anti-Robbery Squad (SARS).

Nigerians took to social media to commend the establishment of the online radio.

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Akwa Ibom Youths Give FG Seven Days Ultimatum To Take Over Zamfara Gold

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images 60 3 Akwa Ibom Youths Give FG Seven Days Ultimatum To Take Over Zamfara Gold

The youths said at a press conference in Uyo on Tuesday said that the gold in Zamfara belonged to the Federal Government and Governor Bello Matawalle had no right to sell the gold bar to the Central Bank of Nigeria (CBN)Leader of Young Democratic Movement, Kuseme Idiong and Speaker, South South Youth Assembly, Comrade Victor Thompson stated that proceeds from the sale of Zamfara gold should be shared among all the 36 states and Federal Capital Territory (FCT), as is done with the oil proceeds from the Niger Delta.

Akwa Ibom Youths under the auspices of Young Democratic Movement (YDM), and South South Youth Assembly have given the Federal Government seven days ultimatum to take over the gold in Zamfara state currently controlled by the state government.

The youths said at a press conference in Uyo on Tuesday said that the gold in Zamfara belonged to the Federal Government and Governor Bello Matawalle had no right to sell the gold bar to the Central Bank of Nigeria (CBN).

‘Paper industry, a goldmine for investors’
Resource control: Omo-Agege faults Zamfara ownership of gold deposits
Leader of Young Democratic Movement, Kuseme Idiong and Speaker, South South Youth Assembly, Comrade Victor Thompson stated that proceeds from the sale of Zamfara gold should be shared among all the 36 states and Federal Capital Territory (FCT), as is done with the oil proceeds from the Niger Delta.


They noted that the Constitution of Nigeria stipulates that mines and minerals including oil fields, oil mining, geological surveys and natural gas in states are exclusively under the control of the Federal Government, and wondered why the FG has not taken over the gold in Zamfara.

They described the action of Zamfara state governor as an act of lawlessness and impunity, and called on the Executive and Legislative arm of government to rise up against it.

They stated that failure of the FG to take over the mineral resources found in Zamfara state would force them to embark on a nationwide protest and call out youths in the country to join.

The groups further demanded an upward review of the derivation funds paid to Niger Delta states saying oil-producing states were not actually paid the 13 percent.

“That both the Executive and the Legislative arm of the Federal Government should rise against this act of lawlessness and impunity from the perpetrators of the sale of Zamfara Gold.Details of both past and present gold or other mineral sales should be made public and proceeds should be shared among all the states as in the case of Oil derivatives from the Niger Delta region.

“The Federal Executive Council and the National Assembly should revisit the derivative funds formula for oil-rich Niger Delta states as oil-producing states are fed below the 13% derivation.

“Failure to upwardly review the derivative funds formula for oil-rich Niger Delta states, the Federal Government must allow Niger Delta to directly sell her oil just as the recent case of Zamfara gold bar.

“We give the Federal Government up till Saturday, October 24, 2020 to give a robust and satisfactory response to our demands else the Youths of Niger Delta shall on Tuesday, October 26, 2020 embark on a Nationwide protest drawing the attention of the international community to this terrible situation. We must warn that we will not leave the streets until our demands are met,” the group stated.

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Senate confirms Dahir-Umar as DG PenCom amidst protests

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images 58 3 Senate confirms Dahir-Umar as DG PenCom amidst protests

The Senate on Tuesday , confirmed the appointment of Aisha Dahir – Umar , as the substantive Director General of the National Pension Commission Board amidst protests from some senators.
Another nominee who was also confirmed by the Senate was Dr Oyindasola Oluremi Oni, from North Central as Chairman .
Also confirmed were Clement Akintola ( South -West ); Ayim Nyerere ( South – East) and Charles Emukowhale ( South – South ) , as commissioners of the PenCom board .
The Senate , however, rejected the confirmation of Hannatu Musa ( North -West ) because she was unable to present her discharge certificate from the National Youths Service Corps .
Members of the Minority Caucus in the Senate last week sent a petition to the Committee on Establishment and Public Service , seeking the disqualification of Dahir – Umar as the substantive DG of PenCom .
Until her confirmation on Tuesday , Dahir -Umar , from the North -East geopolitical zone , held the position in acting capacity .
The Minority Leader of the Senate , Senator Enyinnaya Abaribe, who argued against Dahir -Umar confirmation , insisted that since her predecessor did not complete her tenure , the position should be occupied by somebody from the South -East , where Mrs Chinelo Anohu -Amazu , whose five – year tenure was truncated , hailed from .
Ruling on Abaribe’s argument , the President of the Senate , Ahmad Lawan , said the constitutional provisions relied upon by those who are kicking against the DG ’s appointment was not valid because the tenure of Anohu-Amazu ’s board had expired before the appointment of Dahir -Umar
The President , Major General Muhammadu Buhari ( retd .) , had penultimate week , sent the name of Dahir -Umar to the Senate , seeking the lawmakers ’ confirmation for her to be the substantive DG and others , to the board of the agency .
Details later …

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