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Senate okays 2024-2026 MTEF, FSP as it seeks to probe Tax Waivers from 2015 Till Date

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Sen Sani Musa
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The Senate has approved the 2024-2026 Medium Term Expenditure Frame Work (MTEF) and Fiscal Strategy Paper (FSP).

The upper legislative chamber also ordered an investigation into all tax waivers from 2015 till date and directed that all waivers not directly linked to non-governmental/non-profit organizations should not be granted.

The Senate observed that before waiver can be approved, there are certain conditions attached, adding that some people have been benefitting from the waiver year in, year out.

Addressing newsmen, shortly after the plenary, the Chairman of the Joint Senate Committees on Finance, Appropriations, National Planning and Foreign Debt, Senator Sani Musa, lamented that so much have been lost to the waiver.

He said: “We can not continue to talk of waiver while we kill our local manufacturers.
What we have today are catels, who are not given back to Nigeria. We will take the bull by the horn.”

He said that the customer told the Senate that the nation lost about N1.3 trillion to waiver, adding that it doesn’t make any economy sense, when waiver is granted, and nothing is gained.

In the report of the Senate Joint Committees, President Bola Ahmed Tinubu will borrow N7.8 trillion to fund the 2024 budget of N26 trillion that will be presented to the National Assembly soon.

In the budget, N8.2 trillion is earmarked for debt services.

In the report presented for consideration on the floor of the Senate, Sani Musa revealed that the federal government projected the reduction in inflation from 27.33 % to 21.4% in 2024.

“The total budget for the 2024 will be N26 trillion with N16.9 trillion in retained revenue, N243.6 billion for the sinking fund, the statutory transfer for the budget will be N1.3 trillion, N1.2 trillion. In pension gratuity and retirees benefits.

“The total recurrent (non-debt) of N10.2 trillion, personal cost of MDAs- N4.49 trillion, capital expenditure (exclusive of transfers ) -N5.9 trillion, special Intervention (recurrent)- N200 billion and special Intervention capital -N7 billion comprise the.aggregate of Federal government expenditure of N26 trillion,” the report said.

The report further reads: “Following the criteria in the overview of the framework for revenues and expenses, which forms the basis of the 2024 FGN budget FGN proposed spending N26 trillion, of which N16.9 trillion was retained, new borrowings of N7.8 trillion (including borrowing from foreign and domestic), debt service to revenue ratio of 49%, pension, gratuities, and retiree benefits of N12 trillion, and a fiscal deficit of N9 trillion (including GOES)

“The projected N16.96 trillion revenues to the federal government for the 2024 fiscal year is attainable with effective revenue monitoring exercise and oversight by the relevant Committees of the National Assembly

“The projected fiscal deficit of N9.048 trillion, N10.02 and N11.48 proposed for the 2024, 2025 and 2026 fiscal years are 22%, 13.6% and 1% lower than the N11 6 trillion fiscal deficit for the year 2023. The proposed strategy for the government in 2024 towards deficit financing is to increase funding from privatization proceeds and foreign borrowing and reduce funding from multilateral and bilateral project- tied loans and domestic borrowing

“The Federal Government’s commitments to progressively restructure its debt portfolio towards achieving a balanced domestic-to-external debt ratio is evident in the 2024-2026 MTEF and FSP

“A significant number of the Federal Government’s Revenue- Generating Agencies engaged in arbitrary, frivolous, and extra-budgetary expenditure.”

The oil bemcark is pegged at $73.6 per barrel with daily production of 1.78 million barrel per day with an exchange rate of N700 to $1 .

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Legislature

Senate okays establishment of North West Development Commission

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The Senate has approved the North West Development Commission (NWDC) bill to address the challenges facing the seven states in the geopolitical zone.

The approval came after the consideration and adoption of the report of the Committee on Special Duties on the NWDC (Establishment).

The bill to establish the commission was sponsored by t

The Deputy President of the Senate, Senator Barau Jibrin and 20 other senators from the seven states in the North West geopolitical zone sponsored the bill to establish the commission
Chairman of the committee, Sen. Shehu Lawan Kaka (APC, Borno Central) moved the motion for the presentation and consideration of the report, while Sen. Ireti Kingibe (LP, FCT) seconded it.
Presenting the committee’s report, Senator Kaka pointed out that the intent and purpose of the bill are well structured and strategically streamlined for the socio-economic development of the North West geopolitical zone of the country.

He added that the commission’s establishment would bring the federal government closer to the North Western states and meet the yearnings and aspirations of the people.
He, therefore, urged the Senate to pass the bill.

When the bill was put to vote by the Deputy President of the Senate, Senator Barau I Jibrin, who presided over the plenary, the senators unanimously supported it.

In his remarks, Senator Barau commended his colleagues for supporting the bill’s passage.

When established, he said the commission would address the challenges facing the geopolitical zone and, by extension, the country.

Describing the North West as the food basket of the country, he said the commission, when established, will work towards the restoration of infrastructure destroyed by Boko Haram insurgents and bandits in the region.

” So if we are serious about ensuring we have food and for food security to be attained in this country, we must provide the necessary infrastructure for all our key sectors to thrive well.

“This commission is needed. I commend you all for supporting this; no one said no. Everybody supported this idea. So, now we are pushing the Bill to the House of Representatives for their approval and then to Mr President for assent,” he said.

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Electricity tariff: Rowdy session as Senate leadership truncates debate abruptly

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**panel wants tariff hike suspended

The Senate report seeking the suspension of hike in electricity tariff resulted in another round of a rowdy session in the Senate chamber on Thursday, after the debate on the report was brought to a halt abruptly by the leadership

The Senator Eyinnaya Abaribe-led Senate’s committe on Power had recommended among others that the National Electricity Regulatory Commission (NERC) should suspend the ongoing implementation of MYTO, 2024 which approved over 200% upward review of the previous tariffs from N68/kWh to N225/kWh to allow for robust consultation with customers on the various bands on the cost of service instead of heavy reliance on feeder location and duration of service which are difficult to determine and monitor”

The report which was presented to the senate by Abaribe also recommended that “NERC should ensure full compliance with the mandatory requirement of stakeholder consultation under Section 48 of the Electricity Act, 2023 regarding future regulatory decisions to avoid a repeat of the confusion and public outcry that trailed the recent tariff increase”.

But immediately the report was presented the 10-point recommendation, senators took their turns to condemn the hike in tariff and pointed out that it was done amidst high cost of living.

Chief Whip of the Senate, Ali Ndume said the plan by NERC was discriminatory and unconstitutional.

“I am surprised with the sudden hike in electricity tariff which is against the constitution. When I heard about this, I checked the constitution and what they did was discrimination which is against the constitution.

“If you are living among the masses, you are getting power from Band A and others are not, it’s discrimination,” Ndume said stating that he is happy the president is not buying into such policies.

Sen Isah Jibrin (Kogi East) said the government must intervene in some sectors of the economy particularly power sector.

“Most of the companies in Nigeria today cannot operate because of power. Government should invest by way of subsidies,” he said.

The Senate minority leader, Abba Moro said what was going on in Nigeria was very sad.

He revealed that Nigerians provide transformers for their communities and pay the electricity companies to install them and after which electricity companies take ownership of the transformers.

Sen Adamu Aliero (Kebbi Central) said the increment in electricity tariff was done without consultation and urged the Senate to swing into action by adopting the committee report.

Also speaking, a former senate leader, Yahaya Abdullahi (Kebbi North) said the power sector is so segmented to the detriment of the consumers.

He said the amount of resources spent on power is always wasted.

While deliberations were ongoing, Sen Jimoh Ibrahim (Ondo South) said as beautiful as the matter was, the Senate should give respect to the judiciary, an affirmation of an earlier point of order raised by Sen Titus Zam (Benue North East), to the effect that a Kano High Court is already entertaining the matter of the electricity hike.

Ibrahim advised that since the case is in court, the Senate should not be the judge, urging the Senate to step down the report.

Ruling on the matter, the Deputy President of the Senate, Barau Jibrin who presided over the plenary said he knew about the order of the court adding that he is constrained.

“There is a need for us to have restraint,” Barau said, adding that having listened to the comments of Sen Zam, who is the chairman of rules and business, their is need to stepped down debate on the report.

Other recommendations of the committee are “that the Ministry of Power and NERC should in the meantime adopt measures to address the problem of power scarcity holistically rather than its preoccupation with price manipulation which has proven to be counterproductive.

“That NERC should hold the DISCOs accountable on Key performance Indicators (KPIs) including failure to deliver on CAPEX and OPEX allocations, customer metering obligation under the Electricity Act, 2023, essential customer service obligations including customer sensitization, implementation of energy credits for customers who invested in transformers meters and other assets on the DISCO networks.

“That rate designs should only be cost-reflective if proper account is taken of the relevant macroeconomic environment that determine the affordability of electricity to the different segments of the market”

The committee also recommended “that the Federal Government metering intervention should be encouraged and intensified to address current metering gap of 6.3 million and this must be pursued by the FGN without prejudice to the statutory obligation of DISCOS to meter their customers as provided under Section 68(1)(b) of the Electricity Act, 2023. In this regard, Mr. President should be commended for the introduction of the Presidential Metering Initiative.

“That the Federal Ministry of Power should be advised to intensify efforts towards honouring the subsisting contract with Ziklagsis Networks Ltd (ZNL) for the manufacture, supply, installation, management and maintenance of Pre-Paid Meters (PPMs) in Nigeria including the recent Tripartite Metering Project Consortium Agreement between ZNL and De-Haryor Global Services Limited and the Nigerian Army dated 7th September, 2023 which was signed by ZNL for the metering of Army Barracks and other Military Facilities or in the alternative refund the initial funding to the Federal Government.

“That vigorous implementation of power decentralization provided for under the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) and the Electricity Act, 2023 to relieve the Federal Government of the pressure to electrify every nook and cranny of this country should be encouraged.

And “that the Ministry of Power should establish Electricity Consumer Protection (ECP) Unit to develop, implement and enforce Electricity Consumer Protection component of the Electricity Act, 2023. 34(2)(c) and 119 (1)(f)”

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Kogi Assembly urges Govt to beef up security around tertiary institutions

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By Friday Idachaba, Lokoja

KOGI State House of Assembly has called on Governor Ahmed Usman Ododo to beef up security around all the Tertiary Educational Institutions in the state to curtail further abduction of students from campuses by hoodlums.

The call was contained in a resolution of the House following adoption of a Motion Of Urgent Public Importance moved by Hon. Asema Baba Haruna (APC-Adavi) at plenary in Lokoja

Haruna who is also the Chief Whip of the House, while presenting the motion condemned the recent abduction of 24 students from the state-owned Confluence University of Science and Technology (CUSTECH), Osara.

The legislator sympathized with families of the kidnapped students on the sad incident saying, “It is high time we beefed up security around our schools to avert a repetition of what happened in Osara.

“The government should as a matter of urgency construct perimeter fencing in all our Schools to stop this hoodlums from kidnapping our Students.

“The Governor should also motivate our security agencies for their good work in combating insecurities in our dare State.” he urged.

Supporting the motion, Hon. Idowu Ibikunle (ADC-Yagba-West) who is also the Minority Leader of the House said though about 20 out of the 24 kidnapped students had been rescued, the condition tion of the rest could only be imagined.

He hinted that a business tycoon recently Kidnapped in his constituency had not been released.

“We are appealing to the Kogi state Government to make a stiffer law against kidnapping. By doing this, whoever that is caught in kidnapping will dance to the music”

Also supporting the motion, many of the legislators were unanimous in their call on security agencies to change their surveillance and operational strategies in tackling insecurity in Kogi State.

In his ruling, Speaker of the House, Rt. Hon. Aliyu Umar Yusuf (APC-Lokoja II) said Governor Ahmed Usman Ododo had shown much commitment and seriousness in tackling insecurity and making the state one of the safest in the Country.

“We want all the kidnappers to be apprehended and made to face the full wrath of the law. Kogi State can never be a breeding place for this criminal elements who are enemies of the State”, he added.

The speaker also urged the State Government to support the creation of State Police in a bid to address the spate of insecurity in the Country.

The motion was adopted by overwhelming voice votes in its favour. (Ends)

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