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Business Bells

Category: Economy

  • BudgIT Uncovers 460 Duplicated Projects Worth N378.9bn in 2022 Budget

    BudgIT Uncovers 460 Duplicated Projects Worth N378.9bn in 2022 Budget

     

    BudgIT, a civic-tech non-profit organisation, says 460 projects amounting to N378.9 billion were duplicated in the 2022 budget.

     

    Iyanu Fatoba, communications associate at BudgIT, disclosed this in a statement.

     

    On December 31, 2021, President Muhammadu Buhari signed the N17.13 trillion 2022 appropriation bill into law.

     

    The presidency had submitted a proposed fiscal budget of N16.391 trillion to the national assembly, but the lawmakers later raised it to N17.127 trillion — an increase of N735.8 billion.

     

    BudgIT said it uncovered the discrepancies after examining the 21,108 capital projects in the budget.

     

    “Our preliminary analysis of the 21,108 capital projects in the 2022 approved budget revealed 460 duplicated projects amounting to N378.9 billion,” the statement reads.

     

    “Recall that BudgIT observed 316 duplicated projects inserted into the 2021 FG Budget approved by NASS. ICPC verified 257 duplications, while the Budget Office confirmed the existence of only 185 duplicated projects worth N20.13bn, after which it informed the public that funds were not released for the projects in 2021.”

     

    BudgIT also mentioned the occurrence of “inflated projects” amounting to billions of naira directly linked to the State House and the presidency.

     

    It listed them to include N20.8 billion requested by the presidency to construct a 14-bed presidential wing at the existing State House Medical Center; N28.72 million requested for the purchase of two units of 10kg washing machine and six units of LG televisions in the State House, Lagos Liaison Office, among others.

     

    Speaking of projects approved under ministries, departments and agencies (MDAs) that do not have the capacity to execute them, BudgIT said the National Agency for Great Green Wall (NAGGW) has N1.3 billion or 64% of its capital budget dedicated to purchasing motorcycles, street lights and other projects outside its mandate.

     

    The organisation also raised questions on the ministry of environment which has an allocation of N67.8 million to construct “gun armories” in Cross River, Kaduna, Borno and Yobe states, even though the ministry is not a security agency.

     

    It also said the River Basin Development Authorities (RBDA) had metamorphosed into an agency that constructs roads and supplies street lights.

     

    “A cumulative total of N6.3billion was allocated to supplying street lights in 73 communities across the 36 states, while N14.8 billion was allocated for the construction of 219 roads across 36 states; whereas the majority of the roads are the responsibilities of state and local governments and not the federal government,” the statement reads.

     

    Speaking on the findings, Gabriel Okeowo, BudgIT’s country director, described the duplicated projects as “loopholes for fraud”.

     

    According to him, they are crimes against the 86 million Nigerians living below the poverty line, an injustice to hardworking taxpayers and an open mockery of countries and lending institutions that intend to lend Nigeria N6.29 trillion in 2022.

     

    “BudgIT is currently finalising its detailed analysis of the approved FG 2022 budget which would be presented to all stakeholders in the executive and legislative arm of government as well as the general citizens,” Okeowo added.

     

    “In the meantime, we call on the government to prioritise projects that are of utmost benefit and exercise discipline in implementing duplicated and poorly costed projects in the 2022 budget.”

     

    BudgIT also urged Nigerians, CSOs, the private sector, the international community, and reformers to join the call for an urgent redress of the issues to ensure public funds work for all Nigerians and not for a privileged few politicians.

     

  • Twitter Set To Pay Tax, Establish ‘Legal Entity’ In Nigeria As Suspension Is Lifted

    Twitter Set To Pay Tax, Establish ‘Legal Entity’ In Nigeria As Suspension Is Lifted

     

    Social media giant Twitter has agreed to pay “applicable tax” and establish a legal entity in Nigeria in the first quarter of 2022, a senior government official said on Wednesday.

     

    Kashifu Inuwa Abdullahi, the director-general of the National Information Technology Development Agency, who headed the Nigerian team that negotiated with Twitter, said in a statement while announcing the lifting of the more than six-month-long suspension of the social media platform in the country.

     

    Twitter will also appoint a “designated country representative to interface with Nigerian authorities” by 2023 and register with the Corporate Affairs Commissiion, Abdullahi said.

     

    The platform is also expected to enroll Nigeria in its Partner Support and Law Enforcement Portals. The Law Enforcement Portal provides a channel for the law enforcement agencies to submit a report with a legal justification where it suspects that content violates Nigerian Laws.

     

    “Twitter has agreed to act with a respectful acknowledgement of Nigerian laws and the national culture and history on which such legislation has been built and work with the FGN and the broader industry to develop a Code of Conduct in line with global best practices, applicable in almost all developed countries,” Abdullahi said.

     

    Nigeria suspended Twitter in June 2021, days after the platform deleted a remark from Buhari’s account, provoking outcry over freedom of expression in Africa’s most populous country.

     

    Nigerian officials defended the suspension saying Twitter was used to promote fake news and for destabilising activities, especially by separatists in the southeast.

     

    Buhari’s government and Twitter have been in talks over a list of conditions for ending the suspension, including discussions on taxes, content, and registering locally in Nigeria.

     

    “The issues are being addressed and I have directed that the suspension be lifted, but only if the conditions are met to allow our citizens to continue the use of the platform for business and positive engagements,” Buhari said in a speech marking Nigeria’s independence day.

     

  • Coca-Cola, Bigi, Others To Cost More as FG Imposes N10/litre ‘Sugar Tax’ on Carbonated Drinks

    Coca-Cola, Bigi, Others To Cost More as FG Imposes N10/litre ‘Sugar Tax’ on Carbonated Drinks

     

    The Federal Government has introduced an excise duty of N10/litre on all non-alcoholic, carbonated and sweetened beverages.

     

    Excise duty is a form of tax imposed on the production, licensing and sale of goods.

     

    Zainab Ahmed, minister of finance, budget and national planning, said this during the public presentation of the 2022 Appropriation Act on Wednesday in Abuja.

     

    According to her, the new policy introduced is in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.

     

    In 2019, Zainab Ahmed, the minister of finance, had announced that the government may introduce excise duty on carbonated drinks.

     

    In 2020, Hameed Ali, comptroller-general of the Nigeria Customs Service (NCS), had proposed the collection of excise duty on soft drinks.

     

    He had also put forward the same proposal in 2021 at an interactive session on the 2022-2024 medium-term expenditure framework (MTEF), organised by the house of representatives committee on finance.

     

    Apart from the new ‘Sugar Tax’ in section 17, Ahmed said the 2021 finance Act also raised excise duties and revenues for the health sector.

     

    The minister said the excise duty on soft drinks would discourage excessive consumption of sugar beverages which contributes to diabetes, obesity among others.

     

    However, checks showed that there are other sources of sugar intake, including alcoholic drinks, biscuits, buns, cakes, dairy products, and savoury food.

     

    “There’s now an excise duty of N10/ per litre imposed on all non-alcoholic and sweetened beverages,” she said.

     

    “And this is to discourage excessive consumption of sugar in beverages which contributes to a number of health conditions including diabetes and obesity.

     

    “But also used to raise excise duties and revenues for health-related and other critical expenditures.

     

    “This is in line also with the 2022 budget priorities.”

     

  • Banks’ll Increase Credit To Economy in 2022, Says CBN

    Banks’ll Increase Credit To Economy in 2022, Says CBN

     

    The Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, has said the banking sector will increase access to finance and credit for households in 2022.

     

    Emefiele said this recently in Lagos, according to a statement on Thursday.

     

    “The policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities,” he said.

     

    He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.

     

    He stressed the need for all stakeholders to work to build a more resilient economy that would be better able to contain external shocks, while supporting growth and wealth creation in key sectors of our economy.

     

    According to him, a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the base of the Nigerian economy.

     

    Emefiele said the country must do everything possible to reduce the importation of goods into the country.

     

    “Proactive steps on the part of stakeholders in the private sector, in collaboration with the government in supporting the growth of sectors such as manufacturing, ICT, and infrastructure, will strengthen our ability to deal with the challenges of COVID-19, and stimulate further growth of our economy,” he added.

     

    Speaking on the need to build an efficient infrastructure ecosystem in Nigeria and the role of improved infrastructure to the development of the Nigerian economy, he disclosed that all necessary approvals had been obtained for the full commencement of the Infrastructure Corporation in early 2022.

     

  • Nigeria’s Inflation Rate May Be Among World’s Highest In 2022 – World Bank

    Nigeria’s Inflation Rate May Be Among World’s Highest In 2022 – World Bank

     

    The World Bank has said Nigeria may have one of the highest inflation rates globally in 2022, with increasing prices diminishing the welfare of Nigerian households.

     

    According to the World Bank, Nigeria is projected to have one of the highest inflation rates globally and the seventh highest among Sub-Saharan African countries in 2022.

     

    “In 2022, Nigeria is expected to have one of the highest inflation rates in the world and the seventh highest in Sub-Saharan Africa,” it said.

     

    The bank said this in the November edition of its Nigeria Development Update.

     

    According to the global financial institution, high inflation hampers the country’s attempt to achieve economic recovery and erodes the purchasing power of most vulnerable households.

     

    The document read in part, “High inflation is frustrating Nigeria’s economic recovery and eroding the purchasing power of the most vulnerable households. In the absence of measures to contain inflation, rising prices will continue to diminish the welfare of Nigerian households.”

     

    The bank further highlighted the adverse effects of inflation on Nigeria, which include pushing eight million Nigerians into poverty, and the possible disruption of consumption, investment and saving decisions, among other consequences.

     

    “If inflation had been closer to the CBN’s goal of nine per cent in 2021, the average Nigeria’s consumption would have been 15 per cent higher, and eight million Nigerians would have not fallen into poverty.

     

    “If double-digit inflation persists during 2022-2023, rising prices will distort consumption, investment, and saving decisions of the government, households, and firms, with adverse ramifications for long-term borrowing and lending.

     

    “Over time, the disproportionate impact of inflation on lower-income households and those working in sectors with low savings (e.g, agriculture) will exacerbate inequality. Ultimately, inflation will not only negatively affect incomes, but also economic productivity and job creation, further constraining the recovery,” the bank said.

     

    The Washington, United States-based institution also disclosed that over two years, an increase in food prices accounted for about 70 per cent of the annual increase in the rate of inflation.

     

    It also said that inflationary pressures were trigged by multiple demand and supply shocks.

     

    The document read in part, “Inflationary pressures are being generated by multiple demand and supply shocks. Supply shocks arising from disruption of supply chains linked to COVID-19 and associated containment measures have eased, but security issues, border closures, and limited access to markets continue to fuel inflation.

     

    “The current mix of monetary, fiscal, foreign exchange, and trade policies also plays a prominent role as a driver of inflation. Trade and FX restrictions, including the closure of land borders starting in August 2019, have increased prices for food and consumer goods, and imports of over 40 goods, including many staple foods, are currently ineligible for FX through formal windows.

     

    “Nigeria’s exchange-rate management has resulted in the rise of parallel rates, which are closely linked to food-price dynamics. Unable to access FX through the official exchange-rate window, businesses seek FX on the parallel market and other alternative sources.

     

    “The parallel rate influences their business decisions, and fluctuations in the parallel rate pass through to market prices for goods and services. Moreover, monetary policy has not prioritized controlling inflation, and the monetary financing of fiscal deficit undermines the effectiveness of policies to contain demand-side inflationary pressures.”

  • BREAKING: eNaira Wallet Now Available For Download as Buhari Officially Launches Nigeria’s Digital Currency

    BREAKING: eNaira Wallet Now Available For Download as Buhari Officially Launches Nigeria’s Digital Currency

     

    After much anticipation, the Central Bank of Nigeria’s digital currency, CBDC is now live and available for download, as  Nigeria takes the lead as the first country in Africa with a working CBDC.

     

    President Muhammadu Buhari unveiled the e-Naira at the State House in Abuja on Monday.

     

    An earlier plan to unveil the digital currency on October 1 was shelved.

     

    Nigeria is one of only a few countries in the world to develop an official digital currency.

     

    The eNaira was developed by fintech company Bitt, which is also behind the creation of CBDC in some East Caribbean countries.

     

    At the launch Monday, the Central Bank of Nigeria Governor, Godwin Emefiele, said 500 million eNaira ($1.21 million) has already been minted.

     

    The CBDC’s digital currency app and its merchant wallet are now live and available for download.

     

    The two apps, eNaira speed wallet and eNaira merchant wallet, are now available on Google playstore and Apple store.

     

    A notice on the enaira website gives details into how the currency and the wallet will work.

     

    “Get Ready With Your Accurate BVN Data For Your Hitch-Free Enrolment,” it says.

     

    “To sign-up on the eNaira speed wallet, you would be required to input the following details exactly as captured during your BVN enrollment.

     

    “First Name, Last Name, Date of Birth, State of Origin, and Email.

     

    “Your Banks are waiting to assist you in validating and updating your BVN details to ensure seamless enrolment to the eNaira Platform,” it says.

     

    The central bank has also published the regulatory guidelines of the currency on its website.

     

    “The guideline seeks to provide simplicity in the operation of eNaira, encourage general acceptability and use, promote low cost of transactions, drive financial inclusion while minimizing inherent risks of disintermediation of any negative impact on the financial system,” it says.

     

    You can visit the website to download the eNaira speed wallet, as the application is now available for iPhone and Android users.

  • Dollar Hits N575 Two Days After Aboki FX Update Suspension

    Dollar Hits N575 Two Days After Aboki FX Update Suspension

     

    The dollar rose to between N572 and N575 in different parts of the country on Monday barely two days after online platform, Aboki FX, stopped providing updates on the exchange rate.

     

    A visit to the ever-busy Wuse Zone 4 which is the hub of bureau de change operators in Abuja, discovered that the dollar was sold for N574 as opposed to the N570 it was sold for on Friday.

     

    In Lagos, the dollar was sold at N572 while in Kano it was N575 as of 3pm on Monday.

     

    The pound was sold for N780 as opposed to N770 last Friday.

     

    The Governor of the Central Bank of Nigeria, Godwin Emefiele, had accused the online foreign exchange update platform, Aboxi FX, of manipulating the forex market.

     

    Emefiele, had said the bank would shut down the operations of Aboki FX which it described as illegal.

     

    Subsequently, Aboki FX said in a statement on Friday that it would no longer publish exchange rates for now and hoped that the naira would stabilise.

     

    It further stated that it usually gets its information from bureau de change operators in Lagos.

  • Nigeria Runs The Risk of Entering Another Debt Trap Over Unending External Borrowing –Pat Utomi

    Nigeria Runs The Risk of Entering Another Debt Trap Over Unending External Borrowing –Pat Utomi

    Pat Utomi, a Professor of Political Economics has warned that Nigeria runs the risk of entering another debt trap if it keeps borrowing to fill the needs of recurring expenditure spending.

     

    He urged that Nigeria develops a clear national strategy, which looks at how growth can take place in a sustainable manner in this economy.

     

    Utomi disclosed this in an interview with Channels TV on Sunday, following President Muhammadu Buhari’s letter to the Senate requesting to borrow over $4 billion from external lenders.

     

    Utomi said, “Our country is going through a very trying period. This is a time for statesmen to emerge, not people arguing partisan position on things.

     

    “The Nigerian economy, is not growing in any way or shape that can accommodate its needs, population growth, rates, location on scale of poor countries. It means that in terms of absolute numbers of people living in poverty, that this is one of the most terrible places to live in on earth.”

     

    Utomi said that even though the borrowings are sometimes justifiable, there was cause for concern seeing how much of Nigeria’s revenue goes into debt servicing.

     

    “In terms of statistic’s being said, yes, in an absolute sense, the fact of borrowing $4 billion is not necessarily something that will kill Nigeria, even though if you look at how much of our revenues going into servicing debt, you have to worry.

     

    “However, there is a converse point here. This country needs to grow like crazy, and it cannot grow unless you invest. The real issue is the targeting of borrowed funds.

     

    “Am I convinced that the targeting is enough to drive the kind of growth that will facilitate the economy to grow in a sustainable manner? I have not been given enough information to believe that it is the case.”

     

    He added that Nigeria has been in this position before, back in the 70s, when General Obasanjo was head of state.

     

    “One of the reasons Nigeria is where it is today, is that oil price dropped during the heat of last year, compounded by supply chain challenges brought about by the lockdown, which led to revenue shortfall of a significant nature because we have failed to do something we said we are doing, which is to diversify the base of the Nigerian economy.

     

    “Do I see the plans that these borrowings will facilitate the diversification of the economy? My straight answer is No, I do not see the plan.

     

    “We need to develop a clear nation strategy, which looks at how growth can take place in a sustainable manner in this economy, then we can borrow, twice or three times as much as we are borrowing, and I won’t be afraid,” he explained.

     

    President Muhammadu Buhari has last week sent a letter to the Senate requesting to borrow over $4 billion from external lenders to fund infrastructure development.

     

    The President sent the letter to the Senate on Tuesday citing European banks including Credit Suisse Group and Standard Chartered Bank as private lenders.

     

    The loans range from a grant of $125 million to a 710 million Euros loan will be sourced from the World Bank, French Development Agency, China-Exim Bank and International Fund for Agricultural Development.

     

    “The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million,” Buhari said.

     

  • Review of Grassroots Economy, Key To National Development –Princess Akobundu

    Review of Grassroots Economy, Key To National Development –Princess Akobundu

    The National Coordinator/ Chief Executive Officer, African Union Development Agency- New Partnership for Africa’s Development, AUDA-NEPAD Nigeria, Princess Gloria Akobundu has reiterated that for the nation to attain greater heights in global economic circle, there is need for self-assessment of economic practices particularly at the grassroots with the aim to embrace and work towards global best practices.

    Akobundu made the call as a member of the Panel of Discussants on day-two of the Inaugural Partnership Economy Summit Abuja with the theme “Translating Global Goals into Local Businesses in Nigeria organized by the Federal Ministry of Special Duties and Inter-Governmental Affairs.

     

    She made the submission while responding to a paper presented by Princess Adejoke Orelope-Adefulire, Senior Special Assistant to the President on Sustainable Development Goals, titled ‘Partnership Economy Nigeria as a Multi-stakeholders platform in pursuit of Translating Global Goals into Local Businesses for SDGs in Nigeria adopting Peer Review Mechanism among the participating Local Government Councils and Areas on the platform of the Government Citizens Partnership.

     

    Akobundu, was represented by Director, APRM Department, AUDA-NEPAD, Mrs Adefunke Adimula.

     

    She reiterated the need for sub-national government to embrace Peer Review Mechanism in order to attain global development standard in their areas of comparative advantages.

     

    According to Akobundu, there is need to introduce technology into every economic activity at the grassroots.

     

    “What to do is not really a challenge as every society in Nigeria is notable for one production or the other but there is an urgent need to transform to global way of production to maximize output.

     

    “Farming is common to every community, but when compared to how it is done in other climes where they have greater outputs and toil less you will discover that the difference is the use of the right technology.

     

    “Let us Peer Review each other’s economic system with love, not to shame each other so that together we can fast track the growth of our local businesses.

     

    “African Union came up with  APRM for voluntary self-assessment among member states and it has also helped in the pursuit of AU- Agenda 2063 ‘Africa We Want’, APRM tool can also be adopted at the sub-national level for greater development.

     

    Orelope-Adefulire, represented by Ms Patricia Aniebue, said all the 17 Goals of SDG-2063 would make individual society and by extension, the country to become condusive for all.

  • SDG: Sub-National Govts, Private Sector Should Embrace Developmental Laws, Policies, says Princess Akobundu

    SDG: Sub-National Govts, Private Sector Should Embrace Developmental Laws, Policies, says Princess Akobundu

    As the Nation aspires to achieve United Nations Sustainable Developmental Goals (SDG) 2030 and African Union Agenda – 2063 ‘Africa We Want’, sub-national governments and the private sector should embrace the existing developmental laws and policies of the Federal Government through compliance in their activities.

    Princess Gloria Akobundu,  National Coordinator/CEO,  AUDA-NEPAD/APRM Nigeria made the call in her remarks at the opening of the Inaugural Partnership Economy Summit 2021 organized in Abuja by the Federal Ministry of Special Duties and Intergovernmental Affairs  themed ‘Translating Global Goals into Local Businesses in Nigeria’ held 14th -15th September.

    According to the CEO, effective globalisation of local businesses requires collective efforts.

    In a statement signed by Abolade Ogundimu, Media Assistant to NC/CEO, AUDA-NEPAD/APRM Nigeria, Akobundu noted; “In order to take our cottage industries to global standard,  there is need for sub-national governments and private sector to partner with federal government in  the implementation of its policies and programmes.

     

    “Through mutual Partnership with major stakeholders,  the general public will be more willing to play their expected roles in the economic transformation agenda of the government.

     

    “This is not the time to complain on what should be done, it is time for every stakeholder to discharge assigned roles so that the society can transform to global standard in every aspect of development.”

     

    She commended President Muhammadu Buhari for coming up with various policies as she urged states and local governments to complement Federal Government’s developmental efforts for rapid growth.

     

    “All stakeholders should begin to work the talk in promoting Public-Private Partnership in order to achieve the Sustainable Development Goals and the AU Agenda 2063 of ‘Africa we want’.

     

    “The ongoing policy of President Buhari to lift 100 million people from poverty within 10 years, among others indicate his commitment to bequeath a greater Nation on the trajectory to meeting AU Agenda- 2063 ‘Africa We Want’ and UN SDG-2030.

     

    “Also, the ongoing Second Peer Review of the Country approved by President Buhari and conducted  by AUDA-NEPAD/APRM Nigeria is to enable the Nation look itself in the mirror to see where it was, where it is and where we want to be. The APRM is a veritable developmental tool.

     

    ” Successful completion of Nigeria’s Second Review will put it ahead of other West African States and fourth in the entire continent to have conducted Second Peer Review on APRM thematic areas which are Socio-economic Development; Democracy and Political Governance; Corporate Governance and; Economic Governance and Management.

     

    “All stakeholders should continue to work together to build a better Nation,  Continent and the world,” she said.

     

    Akobundu lauded Sen. George Akume,  Minister of Special Duties and Inter-Governmental Affairs for organising the summit, targeting grassroots development.

     

    Earlier, Vice President Yemi Osinbajo,  represented by Otunba Niyi Adebayo, Minister of Trade and Investment said rapid development at Local Government Level had been the focus of President Buhari-led administration,  calling for synergy among  State and Non- state actors at all levels of government.

     

    The National Executives of Association of Local Government of Nigeria (ALGON), National Union of Local Government Employees (NULGE) said the summit was capable of deepening development at the Local Government level across the country.