Finance
2019 Budget: Senator Udoma states what Nigerians should expect
BY: Oliseama Okwuchukwu
The Minister for Budget and National Planning, Senator Udoma Udo Udoma, at the 2019 Budget Breakdown Session, in Abuja, on Tuesday, told Nigerians to be hopeful of a brighter future as the seeds of development planted in the last four years are germinating and soon will be bearing fruits.
While acknowledging the patience of Nigerians and the contributions of critical stakeholders like the National Assembly, the Media, and other partners to the development efforts of government, Senator Udoma explained that an economy usually takes some time to build up momentum after a period of recession.
He added, however, that all indices point to the direction of positive growth and the dividends will soon manifest with greater impact as government continues to faithfully implement the provisions of the Economic Recovery and Growth Plan (ERGP), which underpins government’s economic recovery actions.
The Minister pointed to the fact that already the macro-economy has remained largely stable and growth has increased from 0.82% in 2017 to 1.93% in 2018 and 3.01% is expected in 2019, with the continuing implementation of the ERGP.
“Real GDP increased from 1.89% in Q1 of 2018 to 2.01% in the first quarter of 2019 – the strongest first quarter growth since 2015; Significant growth has been recorded in the non-oil sector: 2..47% growth in Q1 2019, up from 0.76% in Q1 2018 and diversification efforts have continued as contribution of the non-oil sector to GDP increased from 90.4% in Q1 2018 to 90.9% in Q1 2019.”
Senator Udoma said that a lot had been done by the Buhari administration in the first four years and the second term will be focused on building on the initiatives and development efforts already put in place.
“The 2019 budget is designed to further reposition the economy on the path of higher, inclusive, diversified and sustainable growth; and to continue to lift significant numbers of our citizens out of poverty”.
The 2019 budget proposal was presented to the National Assembly (NASS) by President Muhammadu Buhari on December 19, 2018; and passed by the NASS on May 9, 2019. The President signed the budget into law on Monday May 27, 2019.
The total budget outlay for 2019 is N8.92 trillion. According to him, the 2019 Budget seeks to continue the reflationary and consolidation policies of the 2017 and 2018 Budgets respectively, which helped put the economy back on the path of growth.
On the expenditure side, allocations to Ministries, Departments and Agencies (MDAs) of Government were guided by the three core objectives of the ERGP: Restoring and sustaining growth; Investing in our people, and Building a globally competitive economy.
Acknowledging that Nigeria faces significant challenges with respect to revenue generation, he assured that government is taking every necessary steps to tackle challenge.
“Key reforms will be implemented with increased vigour to improve revenue collection and expenditure management.
Mr. President is committed, and has directed that all measures necessary be taken to ensure that we grow rapidly while maintaining fiscal sustainability. To ensure that this happens, the President set up a Projects and Programmes Committee which has concluded its work.
The initiatives developed by this committee will be rolled out as the President enters his second term.” Government, he said, will continue to create the enabling environment for the private sector to increase investment so as to increase productivity, create jobs and stimulate further growth.
To continue to fund the budget, the Minister said apart from initiatives in other sectors, the Federal Government has also sustained its efforts to improve public financial management through the comprehensive implementation of the Treasury Single Account (TSA), the Government Integrated Financial Management Information System (GIFMIS) and the Integrated Payroll and Personnel Information System (IPPIS).
The President has also directed that work should be concluded on the deployment of the National Trade Window and other technologies to enhance Customs collections efficiency.
Speaking on the adjustments made by the National Assembly, he said: Executive revenue assumptions were generally approved and adopted by NASS, except for unexplained increases totalling N31.5 billion on some non-oil revenue lines.
NASS increased the budget size from N8.83 trillion to N8.92 trillion, translating to an increase of N90.33 billion This has resulted in an overall increase of N58.83 billion in deficit.
Inexplicably, NASS reduced the proposed borrowing from N1.649 trillion to N1.605 trillion, thus creating an overall unfunded deficit of N102.83 billion.
To fully fund the budget, the level of borrowing may therefore have to increase. Allocations for some executive projects based on critical appraisal and linked to the ERGP were reduced and a large number of new projects, mainly constituency type projects, were introduced.
Mr. President intends to engage the leadership of the ninth National Assembly, as soon as it emerges, to effect any amendments necessary to ensure he delivers on his electoral promises.
Mr. President also intends to seek the support of the leadership of the NASS for a smoother, faster budget process going forward and their collaboration to return to a January-December fiscal year.
On the issue of unemployment, the Minister said although statistics show that unemployment and underemployment remain high in Nigeria, “we can expect reduction in the rate of unemployment as we continue to implement the policies and programmes of the ERGP, which are directed at creating more diversified and inclusive growth.
Mr President has indicated that the focus of his second term will be employment generation,” he added. (PRNigeria)
Flutterwave, Africa’s leading payments technology company, has announced today that its online merchants in Nigeria can now accept American Express payments.
American Express Card Members – with consumer, business, or corporate cards – will be able to make payments directly to e-commerce businesses using Flutterwave in Nigeria.
This service will also be available to Flutterwave merchants in other countries including Tanzania, Rwanda, Ghana and Uganda in the near future.
This collaboration facilitates online transactions and offers a range of benefits for both merchants and online shoppers:
- Flutterwave merchants can attract business from a new customer base of American Express Card Members in Africa and around the world. This includes consumers with personal cards and spenders with business or corporate products. Terms and conditions apply.
- For shoppers, there is more choice when it comes to being able to select their preferred method of payment when transacting with Flutterwave merchants. This collaboration strengthens the American Express global network and increases the number of locations across Africa that can be used by American Express Card Members to purchase a range of different goods and services.
Speaking on the development, Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave, said:“At Flutterwave, we’re always looking for ways to connect the world to Africa through payments. This is one of our initiatives to ensure that more people across the world can pay using Flutterwave in Africa. We understand the value of providing shoppers with payment methods that work for them, as well as helping businesses to expand their customer bases. This collaboration also provides more options of where to shop and what to buy to American Express card holders across the globe. By offering American Express as a method of payment, Flutterwave will make the payment process faster and simpler for American Express card holders, and improve the experience for e-commerce businesses using Flutterwave, helping them to start locally and sell globally.”
On his part, Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, said: “American Express continues to expand in Africa to enable greater payment choice for businesses and consumers. Through the agreement with Flutterwave, a trusted payment provider, we are giving e-commerce merchants in Nigeria the opportunity to reach American Express Card Members around the world. The collaboration is a win-win because it also increases the number of places where our Card Members can use their Cards in Nigeria.”
Flutterwave and American Express share similar visions; to enable businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).
Flutterwave has processed over 630M transactions in excess of USD $31B, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries. On the other hand, American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
…Posts N3.3trn Net Profit, Declares N2.1trn Dividend
…Targets 2mbpd Crude Oil Production by December 2024
The NNPC Limited has released its 2023 Audited Financial Statement (AFS), declaring a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, an increase of over N700billion (28%) when compared to the 2022 profit of N2.548trillion.
In a world press conference held at the NNPC Towers in Abuja on Monday, the Chief Financial Officer of the Company, Mr. Umar Ajiya said the release of the AFS is a testament to the Company’s commitment to transparency and accountability.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.
Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the Company’s shareholders.
Explaining that the NNPC Ltd will announce Initial Public offer (IPO) once the shareholders and Board make a decision, Ajiya also debunked claims on subsidy payment, saying the Company was only taking care of the shortfall on PMS importation between it and the Federation.
Speaking earlier at the press conference, the Chairman of the NNPC Ltd Board, Chief Pius Akinyelure said that the excellent performance came as the fruit of the PIA 2021, the commitment of the Board, Management and staff of the company.
Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.
In her remarks at the briefing, the Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd is targeting 2million barrels per day crude oil production by the the end of the year.
On the current fuel queues in parts of Lagos and the FCT, the Executive Vice President, Downstream, Mr. Dapo Segun appealed for understanding from Nigerians, saying that the the Company is working with relevant stakeholders to address the distribution, evacuation and logistics challenges.
It would be recalled that in 2021, NNPC declared profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.
However, in 2020, it posted its ‘first ever’ profit of N287 billion, then in 2021, it recorded a N674.1 billion profit and in 2022, the profit grew to N2.548, an unprecedented achievement in its financial performance. The N3.297 trillion profit declared for 2023 is the highest since the Company’s inception, 46 years ago.
The Central Bank of Nigeria (CBN) has directed deposit money banks in the country to start charging 0.5% cybersecurity levy on some transactions done by their customers.
The apex bank gave the directive in a circular dated May 6, 2024 and sent to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.
“Following the enactment of the Cybercrime (Prohibition, Prevention, etc) (amendment) Act 2024 and pursuant to the provision of Section 44 (2) (a) of the Act, ‘a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the Second Schedule of the Act’, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA),” the circular partly read.
The apex bank said that the implementation of the levy would start two weeks from the date of the circular.
“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’. Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month,” the circular said
The apex bank added that this new levy will not be applied on transactions such as loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank.
Also exempted from the levy were inter-branch transfers within a bank, cheque clearing and settlements, Letters of Credits, Banks’ recapitalisation-related funding only bulk funds movement from collection accounts, savings and deposits including transactions involving long-term investments, among others.
This current implementation however is not sitting well with some netizens as they reacted to the new development.
Here were some of their reactions from X.
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