Federal Government Borrows N473bn To Pay Salaries, Overheads & Other Expenditure - Okonjo-Iweala Reveals

 The Minister of Finance and Co-ordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, yesterday, put to rest fears of immediate removal of fuel subsidy, as she confirmed that N145.2 billion provision was made for it in 2015 budget.

 Speaking to newsmen in Abuja, she said: “I want to clarify that there has been some misinformation that has gone around in the media about the fact that the National Assembly passed the 2015 budget without provision for fuel subsidy. It is not true. It is important  to note that the National Assembly approved the N100 billion provisions for PMS and N45.2 billion provision for kerosene subsidy.

They approved that. So it is not true that they approved the budget without the subsidy. They retained various elements of the first line charges we put in. But let me say that they were based on the above parameters. The gross federally collectable revenue for the federation increased by N169.845 billion. From N9.64 trillion to N9.78 trillion as a result of raising the benchmark price by a dollar.

The minister further stated  that managing the economy since the crash in oil prices had been very tough for her team which had to adopt various strategies to keep the economy running.

She said: “As you know, I have been honest with you since the current economic problems started. I would like to repeat: we have serious challenges, things have been tough since the beginning of the year and they are likely to remain so till the end of the year. We have serious challenges but we also have strengths and if we do the right things we can keep a steady course and emerge out of the current situation.

 “As a result of the 50 per cent decline in oil revenues, the country has faced a difficult cash crunch and the Federal Government has focused on keeping the economy stable and the government running through a series of measures. We have front-loaded the borrowing programme to manage the cash crunch in the economy.

Okonjo-Iweala said the Federal Government had already utilised more than half of the budgetary provisions for borrowing in the year, in the first four months to pay salaries and provide funds for overheads.

Govt borrows N473bn to meet up with recurrent expenditure She said: “Of the N882 billon budgetary provision for borrowing, the government has borrowed N473 billion to meet up with recurrent expenditure, including salaries and overheads. No capital release so far. 

“Traditionally, the first part of the year witnessed low revenue because tax receipts come in from the middle of the year. This has compounded the challenges caused by the steep drop in revenues due to the oil price fall. As a consequence of the revenue challenges, there has been no capital budget release so far this year but we have kept the recurrent expenditure going."

“On the part of the Federal Government; now, Federal Government budget revenue went up from N3.52 trillion from a position of N3.358 trillion so when we sent in the budget, Federal Government revenue was N3.358 trillion. They returned it with a slight difference of N3.452 trillion. 

On the expenditure side, the aggregate expenditure part was higher than what we went in with. The Federal Government went in with a proposed aggregate expenditure of N4.42 trillion and the National Assembly cast expenditure of N4.49 trillion, which was N67.43 billion higher than the proposed expenditure. Debt service was left unchanged at N943.62 billion.

The National Assembly increased statutory  transfers; you know, these are transfers that go to the MDGs like the National Assembly itself, NDDC, UBEC, Human Rights Commission and others. I will not read of these but just know that the National Assembly increased NDDC.

She stated that, “the fiscal deficit was decreased slightly from N1.067 trillion to N1. 04 trillion but the essential thing to note is that the fiscal deficit decreased  from 11 per cent to 1. 09 per cent so this is a difficult budget but a responsible one.

Read More...

Ngozi Okonjo-Iweala Reveals Her Battle With Cancer

 

 Minister of Finance Dr Ngozi Okonjo-Iweala yesterday disclosed that she was diagnosed with cancer some years back and had her last surgery for it 15 years ago.

 Mrs Okonjo-Iweala spoke about her experience at the Service of Songs for late Special Adviser to the President on Research and Documentation, Oronto Douglas yesterday April 30th. According to the Minister, she constantly used her experience to encourage Oronto during his battle with the disease which led to his death on April 9th.

"Oronto and I had two similarities in life, we both had cancer. I had my last surgery 15 years ago and I shared my experience with him,” she said.

She however did not state what type of cancer she had.

Read More...

Federal Government Blocks N208billion Ghost Workers Scam In The Civil Service

 The Minister of Finance and Coordinating Minister for the Economy, Dr Ngozi Okonjo Iweala yesterday revealed that the federal government has blocked a N208.7 billion ghost workers scam in government parastatals and agencies after a biometric collection exercise carried out to get a proper data of federal civil servants revealed that 62,893 of the workers who were hitherto on the payroll of the federal government were ghost workers.

 She reavealed this while speaking to newsmen in Abuja, the Minister said when the biometric exercise was introduced, most of the civil servants did not show up, an indication that they were ghost workers and after their disengagement, the federal government has been able to save about N208.7 billion usually expended as salaries and benefits on these ghost workers.

Read More...

Missing N30trillion : ''I Won’t Answer Soludo Again'' - Okonjo-Iweala Says

 Dr. Ngozi Okonjo-Iweala, Yesterday said she would no longer answer to former Governor of the Central Bank of Nigeria (CBN), Prof. Charles Soludo, over claims that that N30 trillion was stolen under her watch.

 Okonjo-Iweala said this while responding to questions on a radio programme on Raypower. She, however, advised Nigerians not to be deceived by the misinformation by some politicians in the country.

When asked to comment on the alleged missing N30 trillion, the finance minister said:

“This is part of the packaged lies that Nigerians must avoid. I don’t want to enter into that debate, we have answered him (Soludo) and I don’t want to join issues with him because you don’t join issues when things don’t make any sense.”“

 Ngozi explained that the forensic report on the alleged unremitted oil revenue by the Nigerian National Petroleum Corporation (NNPC) that was submitted to the presidency by PricewaterhouseCoopers (PWC) on Monday was never under her ministry, contrary to the insinuations by some members of the public.

 “There is a lot of misinformation that is being put out and it is sad for me. I have not been controlling the audit, it is the Auditor General. Nigerians have been misinformed. They left out the fact that the Auditor-General was in charge of the report.

I was only interviewed for it and there was no way I could be in charge, but some people decided to paint it as if I was in charge of the report and that is very unfortunate.

 It is part of the packaging and misinformation in this politics, and it has to stop because Nigerians cannot be continuously deceived,” the minister said.

Earlier on today, during an interview with NAN, former EFCC Chairman and PDP Governorship candidate in Adamawa state, Nuhu Ribadu also said it wasn't true the allegation by former CBN Governor Charles Soludo that N30trillion went missing under Ngozi Okonjo-Iweala's watch.

 Nuhu argued that the Minister of Finance has an impeccable record having monitored her while she was minister under Former President Olusegun Obasanjo. He had told NAN:

"I was baffled and got deluded for anyone to say that N30 trillion got lost. I think we just have to look at what we earn as a country and what our budget had been in these few years and see how possible it is. If everything we earned is not up to that within the period she has been the minister, which is about three to four years, then we need to be careful. We need to be careful to avoid more damage to our nation, because there are certain things that when it comes out, it will never go back again." 

 I challenge anybody to say that she stole N1 at that time; we were all there. I was in charge of EFCC and I want to hear anybody say that she did this and that. I followed her up till now. I think it is somehow uncharitable for someone to come out to say that such an amount of money was missing under her watch. 

 When I worked with her, she exhibited a nationalistic attitude that was not questionable and believed in any policy that could take Nigeria and its people high. I am close to almost all of us that worked together as a team and I know that Ngozi continues to do what she knows how best to do, which is to serve Nigeria. She managed this economy fairly in spite of all the challenges and difficulties; it is sad for someone to look at Ngozi and said that she has a hand in it (alleged missing funds). 

 This pull-down syndrome has to stop and we must manage ourselves very well; I am not happy now with what is going on and I think that if it is politics, I think it is something that is hurting us as people and hurting the economy as well,” he said.

Source

Read More...

Federal Government Introduces Austerity Measures As Drop In Oil Price In Int'l Market Threatens Nigerian Economy

 Due to the continued drop in oil price in the international market, the FG yesterday announced the introduction of some austerity measures such as tax introduction on luxury goods such as champagne, jets, amongst other, to be implemented to reduce the effect of the continued oil price decline on the Nigerian economy as Nigeria is largely an oil dependent economy.  

 Addressing newsmen in Abuja yesterday November 16th, Minister of Finance and Coordinating Minister of the Economy, Dr Ngozi Okonjo Iweala, said as part of measures to cushion the hardship that is to come due to the continued drop of oil price in the international market, government would henceforth collect “tax on luxurious goods,” and that this was part of measures aimed at increasing revenue from non-oil sectors.

 "We all know the definition of luxury goods, we are still compiling the lists and one of the things we can tax is champagne, alcoholic beverages, jets, luxury cars- we will look at the engine capacity, and yachts. We are putting the list together but we intend to do a surcharge going forward on these items. The principle is that those who are better off in the society and I hope they won’t mind will be willing to share a bit more in remitting a little bit more to the treasury than what they normally do on these things.” she said

She revealed that another austerity measure being put in place by the government is the reduction of international travel within the public service.

 “We are not talking about (cutting) salaries and benefits. We are talking of trainings and travels and these will be only for critical and essential items which will be pre-approved by the Head of Service and the Director-General of the Budget Office and then if someone invites you for overseas course, you can go provided they pay for your training and your stay and you have to furnish evidence that they are paying before you will be allowed. The purpose of this is to tell you what we are doing and this team is calm and will be effective and we are working with the monetary policy authorities and together we will manage the economy in a transparent manner so that people need not have any fear.” she said

The Minister said that after studying the trend in the drop of oil price in the international market, the economic team approved a $5 per barrel reduction in the 2015 budget benchmark price for oil from $78 to $73 per barrel.

 “As part of the response, the Medium Term Expenditure Framework and the Budget 2015 proposal to the National Assembly have been revised. Government is now proposing a benchmark of $73 dollars per barrel to the National Assembly compared to the earlier proposed benchmark of $78. Given the nature of the oil market, we needed to see the extent and trend of the oil price in order to take the right measures. Panic is not a strategy. It’s important that our strategies are based on facts and a clear understanding of both the strengths of the economy and the challenges posed by the drop in oil prices which is currently at $79 for our premium Bonny Light Crude. The drop in oil prices is a serious challenge which we must confront as a country. We must be prepared to make sacrifices where necessary".

 On the advise from some scholars to print more Naira notes so as to reduce the effect of the oil price drop on Nigerians, the Minister said such an action if implemented would be disastrous to the nation as it would increase the inflation rate of the economy'.

"Printing money without adequate revenue support will lead to serious consequences for the country. It will spur inflation as the experiences of Germany in the early part of the last century and more recently, Argentina and Zimbabwe demonstrate. This prescription will victimise the poor and the middle class that it is supposedly protecting.” she said

She said one of the best ways of managing the situation was to create more jobs. She announced that President Jonathan would today November 17th launch the 4th edition of the You Win youth empowerment programme.

 “To show how serious government is about job creation, President Jonathan will tomorrow, (Monday) November 17 launch the 4th edition of YouWin to support another 1,500 entrepreneurs along with a private equity fund for entrepreneurs. That is an expression of government’s commitment and seriousness to job creation.”

Dr Okonjo-Iweala said the reduction in price of the oil prices in the international market may continue but that government would do everything possible to make sure Nigeria is not adversely affected.

 She said from the $4.1bn (N656bn) in the Excess Crude Account, the government would be withdrawing $2bn (N320bn) between now and the end of this year to take care of critical expenditure.

 “We will work in such a way that we won’t deplete the ECA because we have to leave something for next year but we might go to tap about a half of it ($2bn) or slightly less than half to be able to meet expenditures that are crystalizing at the moment that we need to make.” she said

She also stated that infrastructural expenditure would still continue as the economy can only improve when infrastructural development is in place. Source

Read More...

Am not close to resignation: ‘I dey kampe,’ says Okonjo-Iweala

Am loving this woman who is making 7 governors shiver. The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, said Wednesday, that she will concentrate on her job of managing the nation’s economy for the common good of Nigerians.

The 7 governors who are opposed to the Alh. Bamanga Tukur-led People’s Democratic party, PDP, had Tuesday night called for the resignation of the minister, considered as one of the most valuable members of President Gooluck Jonathan’s cabinet.

The minister who was asked by a journalist whether or not she would resign as demanded by the governors had this to say, “that doesn’t arise. I am not here for those kind of issues. I am Minister of Finance for the country. I am working with President Goodluck Ebele Jonathan and I will just do my job.

“This  briefing is not to address that kind of issue. All of you are Finance correspondents and I call you from time to time I have this kind of press conference and I share with you what is happening in the economy. That is what I am doing. So am I not answering to that? …Do I look any close to resignation? I ‘de kampe’”.

Read More...

Governors Demand Okonjo-Iweala’s Resignation

Members of the Nigerian Governors’ Forum have called on the Minister of Finance, who is also the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, to resign her appointment if she knew she would not be able to adhere strictly with the Appropriation Act 2013.

They said the non-compliance with the revenue projections of the Federal Government 2013 Budget was also a direct breach of the provisions of the Appropriation Act, 2013.

These decisions were part of the resolutions of the Governor Rotimi Amaechi-led NGF, which met in Abuja on Tuesday evening.

States which were represented by their governors at the meeting were those of Rivers, Niger, Kwara, Osun, Ekiti, Ogun, Adamawa, Oyo,  Lagos, Sokoto, Jigawa, Kano and Zamfara while deputy governors  of Edo, Borno and Nasarawa states represented their governors.

The governors also called for the immediate dissolution of the Economic Management Team.

Reading the communique of the meeting, Amaechi, who was flanked by other members said, “Members expressed concern in the management of the economy by the Minister of Finance and Co-ordinating Minister of the Economy and called for a strict adherence to the Appropriation Act, 2013, failing which she should resign.

“Forum observed that the National Economic Council is constitutionally responsible for the management of the economy and should be used for that purpose as opposed to the Economic Management Team constituted by the Presidency.”

The governors also called on the National Assembly to separate the office of the Accountant-General of the Federation from that of the Accountant-General of the Federal Government for the purpose of accountability and better management of the economy.

On polio eradication war, the governors said they noted that some progress had been made in 2013 compared to 2012.

They, therefore, enjoined all governors to remain focused and continue to drive the programme in their irrespective states until polio was completely eradicated in the country.

The governors also expressed condolence to the wife of President Goodluck Jonathan,  Patience, for the loss of her foster mother and also condoled with the Governor of Lagos State, Mr. Raji Fashola (SAN) over the death of his father.

They also expressed their condolence to the family of a former Governor of Ondo State, Dr. Olusegun Agagu.

Amaechi also announced that the governors would hold a retreat in November, but he did not state where it would hold.

The notice of meeting sent to the governors for the meeting showed that money by the Federation Account Allocation Committee topped the agenda at the meeting.

Also on the agenda was the Excess Crude Account, which had been a major disagreement between the governors and the Federal Government.

The Sovereign  Wealth Fund was also discussed.

Amaechi’s opening remark, which kick-started the meeting, dwelt on fresh and subsisting litigations, state peer review mechanism and publication of inaugural speeches by the chairman.

A source at the meeting, said that Amaechi’s speech also covered the capacity building meetings in Galilee Institute, Israel, and investment in the United States of America and Russia.

The source added that oil theft was also part of the issues the governors discussed. The parallel forum is being led by the Governor of Plateau State, Mr. Jonah Jang. Jang and those in his group were not at the meeting.

Source: Punch Nigeria 

Read More...

Okonjo-Iweala’s 82-year-old Mother Abducted

Gunmen yesterday abducted the mother of the Minister of Finance, Prof. Okonjo-Iweala, Professor Kamene Okonjo, in Ogwashi-Uku, Delta State.

The 82-year-old mother of the minister, who is the wife of the Obi of Ogwashi-Uku Kingdom, Professor Chukwuka Aninshi Okonjo Agbogidi, was kidnapped yesterday at about 1:30 pm at her husband’s palace in Ogbe-Ofu quarters by eight gunmen who stormed the palace in two Audi 80 cars.

The kidnappers it was learnt had easy access to the palace as the policeman expected to be on duty was absent. They therefore held all the workers carrying out renovation work at gunpoint. One of the suspects was said to have gone upstairs and picked the bag of the Obi’s wife while the woman, who was sitting under a tree after serving the workers some soft drinks, was taken away.

Delta State Police Public Relations Officer, PPRO Mr Charles Muka, in his reaction said: “Yes, we (police) have got the information on the kidnap and we have also got information that will lead to the arrest of the hoodlums.”

Sources say the woman who is a medical doctor and a professor was pushed into one of the Audi cars and driven to unknown destination.

Reacting to the abduction, Delta State Governor Emmanuel Uduaghan has urged the police and other security agencies to track the kidnappers and free Okonjo-Iweala’s mother within 24 hours.

A source said: “The governor fumed when the kidnap was reported to him and said the boys must be tracked down wherever they are hiding at all cost.”

Speaking to newsmen, the state Commissioner for Information, Chike Ogeah described the kidnap as “very unfortunate.” He said he had spoken to the Commissioner of Police, Mr. Ikechukwu Aduba, and it was clear that the police were on top of the situation.

“I had just spoken to the Commissioner of Police, Mr. Ikechukwu Aduba, and he assured that the police would get the kidnappers.

Read More...