Economy

Subsidy Removal: FG Gets $800m from World Bank Facility

By Web News 510

Minister of Finance, Mrs Zainab Ahmed says part of the $800 million facility from the World Bank will be used to provide financial support for 50 million Nigerians for six months after the petroleum subsidy is removed.

Mrs Ahmed also expressed optimism that Nigeria would benefit from the debt restructuring being worked out under the auspices of the World Bank and International Monetary Fund.

The $800 million facility according to the Minister will provide immediate transport palliative to the most vulnerable members of the society who have been identified, registered in the national social register.

The Minister explained that the social register was being developed by the Ministry of humanitarian affairs, disaster management, and social development with the support of the World Bank with the plan for ten million households.

She said with more savings from the proposed removal of petrol subsidy, the fund for palliatives would be grown to cover more vulnerable Nigerians.

‘’The initial design is to disburse cash transfers of N5,000 per month per household for a period of six months. So, whether this is enough is an assessment that we are undertaking with the transition team. If it’s not enough, the country has to raise additional resources to be able to cover more people, extend the period or increase the amount; whichever is finally negotiated upon.

When the subsidy is removed, there would be additional revenue that would now accrue to the Federation account. One of the things we are working on is how to use this incremental revenue would be used. The money belongs to the federal, state, and local governments. So, we need a consensus of how to use this’’ she stated.

The Minister said the Government would be inclusive in its implementation of the plan with the participation of members of the transition committee from the incoming administration and organized labour.

Mrs Ahmed noted that the removal of the subsidy would bring about a spike in inflation temporarily and then normalize afterwards.

Biodun Dare/Adetutu Adetule

Subscribe to our Telegram and YouTube Channels also join our Whatsapp Update Group 

Crime

AGF Ahmed Idris Suspended over N80bn Scandal

By Web News 495

Minister of Finance Budget and National Planning Mrs Zainab Ahmed has suspended the embattled Accountant General of the Federation Ahmed Idris.

The suspension letter marked HMFBNP/AGF/SUSPENSION/5/2022 and dated 18th May, 2022 said the suspension became necessary “to allow for proper and unhindered investigation in to the serious allegations in line with Public Service Rules 030406”.Financial Crimes Commission (EFCC) on allegations of diversion of funds and money laundering, I write to convey your suspension from work without pay effective 18th May, 2022.

“During this period, you are not expected to attend to your place of work or contact any official in your Office except for any disciplinary hearing that may be advised.

“it is expected that you will strictly comply with any instructions that will be forwarded to you in your current location or your known recorded address as stipulated in the extant rules.”

Nation/Ugbodovon Simeon

News Analysis

Examining the Proposed Reforms in Revenue Generating Agencies

By Web News 1112

As a way of addressing the country’s dwindling economy and heavy debt burden, the federal government moved to boost its resources by directly taking control of revenue management of its ten most lucrative enterprises.

These enterprises include Nigerian National Petroleum Corporation, NNPC, Nigerian Ports Authority, NPA, Nigeria Maritime Administration and Safety Agency, NIMASA, Federal Inland Revenue Service, FIRS and Nigeria Customs Service, NCS.

Others are Corporate Affairs Commission, CAC, Department of Petroleum Resources, DPR, Nigerian Communications Commission, NCC, Federal Airports Authority of Nigeria, FAAN and Nigeria Shippers’ Council, NSC.

Commenting on the development, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed noted that the initiative was in compliance with the presidential approval conveyed through the Secretary to the Government of the Federation’s circular on the approved revenue performance management Framework for Government-Owned Enterprises, FGOEs.

Mrs Ahmed expressed optimism that the presence of Directors of Revenue at the enterprises will ensure strict adherence to extant rules and regulations in the areas of approved budget as well as due process mechanism in procurement and payments.

Furthermore, the directors would be involved in the revenue operations of the agencies, have a better understanding of business processes and operations leading to improved transparency and accountability in the revenue reporting of the FGOEs.

In addition, they are expected to seek opportunities and avenues for revenue improvements which is the ultimate aim of the government.

It will be recalled that the federal government introduced the Treasury Single Account, TSA, ostensibly to ensure effective monitoring and collection of its revenue.

The minister added that, the duties of the directors would be aided with the deployment of Information Technology to ensure transparency and accountability.

Accountant General of the federation, Mr Ahmed Idris opined that the initiative is to achieve transparency and accountability of government revenue with special focus on FGOEs, improved revenue performance and ultimately provide a sustainable source of funding for government budget execution.

The policy is a reform initiative aimed at generating more revenue and associated remittances into the government coffers and also improve the operational performances of all FGOEs.

Unfortunately, it has been discovered that a number of government owned enterprises remitted less than the operating surplus to the consolidated revenue fund as required by law of financial regulations.

To ensure the success of this measure, auditors both internal and external should be proactive by ensuring that the government does not lose any revenue through leakages, wastages and corrupt practices.

It is of utmost importance that the Directors of Revenue in the FGOEs, discharge their duties as expected which will in turn translate to economic growth for the nation.

Titilayo Kupoliyi