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Reps Approve N1.7 Trillion As Subsidy For Fuel In 2023

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Reps Approve N1.7 Trillion As Subsidy For Fuel In 2023

The sum of N1.7 trillion was on Thursday approved by the House of Representatives as a subsidy for fuel in 2023

This amount is at variance with the N3.6 trillion approved by the Senate on Wednesday.

This followed the consideration and approval of the report of the House Committee on Finance which worked on the 2023-2025 Medium Term Expenditure Framework (MTEF)/Fiscal Strategy Paper (FSP), as presented by Deputy Chairman of the committee, Saidu Musa Abdullahi.

Although, the Senate Joint Committees on Finance and National Planning and Economic Affairs, which worked on the fiscal document, had recommended that the cost of petroleum subsidy be capped at N1.7trn in 2023, the Red Chamber during consideration of the report upheld N3.6trn for subsidy as originally proposed by President Muhammadu Buhari.

The House said capping the cost of petroleum subsidy at N1.7 trillion in 2023 wold enable the federal government to save the sum of N737,306,443,151 which it said should be used to reduce the fiscal deficit of N11.3 trillion to N10.563 trillion.

 READ ALSO: Buhari To Remove Fuel Subsidy In 2023 – Keyamo

It also approved new borrowings of N8.437 trillion (including foreign and domestic borrowing), subject to the provision of details of the borrowing plan to the National Assembly.

The House in its recommendations approved an increase in the oil benchmark to $73 per barrel and a daily oil production of 1.83 million barrels per day.

Also approved include an exchange rate of N437.57/US$1; projected Gross Domestic Product (GDP) growth rate of 3.75% as well as 17.16% inflation rate.

Other parameters approved by the House include revenue of N9.352 trillion as a result of increase in the benchmark; fiscal deficit of N10.563 trillion (including GOEs); statutory transfers, totaling, N722.11 billion; debt service estimate of N6.31 trillion; sinking fund to the tune of N247.7 billion and N827.8 billion for pension, gratuities and retirees benefits, among others.

Meanwhile, all is now set for Friday’s presentation of the 2023 budget estimate by President Muhammadu Buhari before a joint session of the National Assembly.

Deputy Speaker of the House of Representatives while speaking on the readiness to receive the president at the House, urged all members to be seated by 9:00 a.m. for the event.

 

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Nigeria’s Headline Inflation Rises To 21.9%

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Nigeria's Headline Inflation Rises To 21.9%

Nigeria‘s headline inflation has risen to 21.09 per cent according to the Consumer Price Index (CPI) report for the month of October.

The CPI report which was released on Tuesday by the National Bureau of Statistics (NBS) said that there was an increase of 0.32 per cent from the 20.77 per cent recorded in September.

The data suggests that the headline inflation rate climbed by 5.09 per cent in October 2022 as compared to the same month the year before (October 2021).

“In October 2022, on a year–on–year basis, the headline inflation rate was 21.09%. This was 5.09% points higher compared to the rate recorded in October 2021, which was 15.99%.

READ ALSO:  Nigeria’s Inflation Rises Over 18 Per Cent

“This shows that the general price level for the headline inflation rate increased in October 2022 when compared to the same month in the preceding year (i.e., October 2021) by 5.09%,” the report read.

The report added that “On a month-on-month basis, the headline inflation rate for October 2022 was 1.24%, this was 0.11 % lower than the rate recorded in September 2022 (1.36%).

“The percentage change in the average CPI for the twelve months ending October 2022 over the average of the CPI for the previous twelve months period was 17.86 percent, showing a 0.91 percent increase compared to the 16.96 percent recorded in October 2021.”

The year-on-year food inflation rate in October 2022 was 23.72 per cent, an increase from the previous month’s rate of 23.34 per cent.

“On a month-on-month basis, the food inflation rate in October was 1.23%, this was a 0.21% decline compared to the rate recorded in September 2022 (1.43%).

“This decline was attributed to the reduction in prices of some food items like tubers, palm oil, maize, beans, and vegetables,” the report further stated.

 

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N52b Cash Deposited In Banks Over Naira Re-design Policy

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N52b Cash Deposited In Banks Over Naira Re-design Policy

About N52 billion cash has been deposited in banks barely two weeks after the announcement of plans by the Central Bank of Nigeria (CBN) to redesign some naira notes.

There were indications that the deposit sum may increase in the next few days because it is suspected that about N3 trillion cash was in circulation at the time the apex bank announced the policy.

The CBN claimed that some of the identified depositors were politicians, bureau de change operators, businessmen, real estate financiers, and traders.

It was also learnt that the Economic and Financial Crimes Commission (EFCC) and other security agencies have directed banks to keep records of depositors, including institutions.

 READ ALSO: I’m Fully Behind CBN Governor On Redesigning Naira Notes – Buhari

The screening of high-profile depositors, especially currency hoarders and money launderers, may begin soon.

There was the fear that the redesigning of some naira notes may affect cash haul during the ongoing 2023 campaign.

According to a reliable source, who was armed with facts and figures, security and intelligence agencies have confirmed huge cash deposits of N52 billion in banks in less than two weeks.

The source said some representatives of one of the agencies appeared before a Senate Committee on Tuesday in Abuja behind the curtains.

The source said: “As the cash was being taken to banks, we were getting the details of all the depositors and in some cases, we could trace the sources.

“As of Tuesday, over N52billion cash has been deposited in various banks. Some of the deposits have been traced to some politicians, bureau de change operators, suspected money launderers, middlemen, drug barons, businessmen and traders.

“All the banks have been directed by the EFCC and other anti-graft agencies to keep records of cash depositors and their KYC. They are also mandated to make the list available when required.
“With this directive, it will be easier to uncover currency hoarders, speculators and those sabotaging the nation’s economy.”

Responding to a question, the source said: “Some politicians, governors and suspected fronts of Politically Exposed Persons (PEPs) have been on the radar of some anti-graft agencies.

“Some state governments cannot pay salaries because the corrupt table payment system they have adopted is not practicable with the CBN directive.

“Apart from redesigning the notes, the CBN is also complementing the anti-graft agenda of the administration of President Muhammadu Buhari.

READ ALSO: Redesigning Of Naira May Not Hold As Finance Minister Disagrees With Emefiele

“Nigerians have virtually abandoned the cashless economic policy for cash transactions.

“We may be on our way to addressing basic issues compounding our anti-corruption campaign as a nation.”

On October 26, the CBN announced its decision to redesign the naira.
It cited significant hoarding of banknotes, worsening shortage of clean and fit banknotes, and increasing ease and risk of counterfeiting.

It added that over 85 per cent of the currency in circulation is outside the vaults of commercial banks.

CBN said as of the end of September, N2.73trillion out of the N3.23 trillion currencies in circulation was outside the vaults of commercial banks and supposedly held by the public.

 

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Lagos To Spend N1.6 Trillion Next Year

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Lagos To Spend N1.6 Trillion Next Year

The Lagos State government plans to spend N1.692 trillion next year.

The state governor,  Babajide Sanwo-Olu, presented the estimated N1.692 trillion budget estimates for the 2023 to the House of Assembly.

The ‘Budget of Continuity’ comprises revenue of N1.342 billion and deficit financing of N350,000 billion.

READ ALSO: Why We Aren’t Surprised By Wike’s Endorsement Of Sanwo-Olu – Jandor

This further comprises total Internally Generated Revenue (IGR) of N1.108 billion and federal transfers of N234 billion.

The estimate also proposes a recurrent expenditure of N759 billion and Capital expenditure of N670 billion.

 

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