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Economy & Politics

2020 Budget : Presidency to upgrade presidential fleet with N1.5 billion 

President Muhammadu Buhari wants to upgrade some of the aircraft in the Presidential Air Fleet (PAF) next year.

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Buhari wants to upgrade presidential fleet with N1.5 billion 

The Presidency intends to upgrade some of the aircraft in the Presidential Air Fleet (PAF) next year with a proposed sum of N1.492 billion.

This information was contained in the 2020 Appropriation Bill presented to a joint session of the National Assembly on Tuesday.

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The Details: In a related development, another N200.994 million has been set aside for the purpose of engine overhaul in the Presidential fleet next year.

[READ MORE: President Buhari says World Bank, IMF data are not reliable]

Details of the PAF’s budget are captured under the budget of the Office of the National Security Adviser.  The breakdown is as follows:

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  • N792 million will be spent on “mandatory upgrade and installation of live TV and Internet service on BBJ (5N-FGT).”
  • N50 million will be spent on “compliance with mandatory upgrade and installation of Internet service on G550 (5N-FGW).”
  • N650 million is being proposed to be spent on “compliance with mandatory upgrades on PAF aircraft.”

Buhari wants to upgrade presidential fleet with N1.5 billion 

Further details of the budget revealed that N250 million will be spent on aviation fuel during the year. The sum is part of the N467.86 million budgeted for fuel and lubricants (general) for 2020.

The budget also includes fueling expenses. The sum of N115.86 million was budgeted for motor vehicle fuel; N70 million for plant/generator fuel; N30.2 million for other transport equipment fuel; while N1.8 million was budgeted for cooking gas/fuel.

However, the PAF intends to refund N1.22 billion to Asset Management Corporation of Nigeria for asset acquisition.

Further breakdown of the budget is revealed below:

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The construction of armoury is expected to gulp N120 million while N178.273 million will be spent on the renovation of the HQ 011 PAF complex and aircraft hangar.

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Fire fighting vehicle will cost N90 million during the year while N89.413 million will be spent on the purchase of six pieces of FIDO X3 Military Grade Scanners.

[READ ALSO: Buhari announces 2020 budget based on proposed 7.5% VAT increase]

Note: In 2016, President Muhammadu Buhari approved the sale of two of the 10 aircraft in the presidential air fleet as a means of cutting waste of resources expended on plane maintenance.

 

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Reincarnated as a lover of stocks, Angel investors, seed funds, and anything aligned to tech or startups raising money, Joseph's work at Nairametrics involves following the money to wherever it leads. Before joining Nairametrics, he won an investigative journalism fellowship with ICIR, appeared in several national dallies, with hard-hitting opinions, features and investigative pieces. He has also engaged in content marketing and copywriting for a top e-commerce firm in Nigeria.

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Business News

The conundrum in the retail pricing of PMS

Considering the landing cost of petrol is largely influenced by the prices of crude oil in the international market, we think prospects of continued recovery in crude oil prices is likely to put upward pressure on the cost of importing petrol.

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PPPRA, NNPC, Reduce funding oil subsidy - IMF to Nigeria , Oil marketers, PENGASSAN call for subsidy removal 

The decision of the Petroleum Products Pricing Regulatory Agency (PPPRA) to reduce the pump price of Premium Motor Spirit (PMS), also known as petrol, to N121.50 per litre from N123.50 per litre has been met with stiff resistance from oil marketing companies (OMCs). The Independent Petroleum Marketers Association of Nigeria (IPMAN) have also stated that it impossible for its members to sell petrol at the new price floor of N121.5 per litre.

We recall that on 18 March 2020, the Federal Government (FG) reduced the retail price of Premium Motor Spirit (PMS) by c.14% to N125/litre from N145/litre, following the global pandemic which led to an unprecedented decline in oil prices and by extension a reduction in the landing cost of petrol. Subsequently, the FG announced a further reduction to N123.50 which took effect on April 1, 2020. Earlier this month, the FG directed a reduction in the pump price of Premium Motor Spirit (PMS) for the third time to N121.50 per litre. We note that the adjustments in the retail price is in line with the directive from PPPRA on a monthly review of the pump price, depending on prevailing market realities.

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READ MORE: The good, bad and ugly of low oil prices for Nigeria

In our view, considering the landing cost of petrol is largely influenced by the prices of crude oil in the international market, we think prospects of continued recovery in crude oil prices is likely to put upward pressure on the cost of importing petrol. With the gradual relaxation of lockdown measures by countries who are starting to reopen their economies alongside the historic production cuts of OPEC+ which took effect last month (a 9.7mb/d oil production cut for May and June), we think the risks to oil prices are tilted to the upside in the near term.

Since hitting a two-decade low of US$19.33 on 21 April when the retail price of petrol was pegged at N123.50, brent crude prices have gained c.105% to close at US$39.54 on 3 June. Against this backdrop, we expect that the retail price of petrol should rather be adjusted upwards to reflect current market realities. The current situation appears no different from historical trends where the FG becomes reluctant to effect an upward adjustment in the retail price of petrol during periods of rising crude prices. This has often resulted in the renewed payments of the age-long fuel subsidy. We also think oil marketing companies (OMCs) who have only recently begun to import petrol alongside the Nigerian National Petroleum Corporation (NNPC) due to more favourable pricing could halt importation once again if domestic retail prices become unfavourable.

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Economy & Politics

NLC hastens House of Reps to criminalise casualization of workers

NLC has appealed with Speaker of the House of Representatives to hasten the labour act amendment and put an end to the casualization of workers.  

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Reps move to probe why FG’s N3.4 billion solar power project failed,CEOs of MTN, Airtel, others risk arrest as Reps investigate foreign exchange frauds, Amid Coronavirus spread in Nigeria, lawmakers take delivery of exotic cars, NLC hastens House of reps to criminalise casualization of workers

The Nigerian Labour Congress (NLC)  has appealed to Femi Gbajabiamila, Speaker of the House of Representatives to hasten the labour act amendment and put an end to casualization of workers.

He added that when amending the Labour Act, labour unions should be made more independent and every Nigerian worker should be allowed to join the union of his choice.

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According to the NLC Chairman, Mr Ayuba Wabba, the prevalent practice of casualising workers has become a form of ‘modern day slavery’ and should be ended through legislation, NAN reports.

Wabba, who visited the Speaker, alongside other members of the NLC leadership urged the green chambers leader to strengthen the union through its legislations, as can be seen in other countries.

(READ MORE: Nigerians are enraged as lawmakers reject Innoson cars for latest Toyota Camry)

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Gbajabiamila assured the congress leaders that the house of representatives is willing to work with the union, in line with its motto “Nation Building, a Joint Task”.

Minimum wage, NLC, Looting by former governors blocks excuses for new minimum wage , NLC hastens House of reps to criminalise casualization of workers

He noted that the House of Representatives already has plans to amend the Labour Act, and urged the union leaders to speedily bring in their input as time is of essence.

“You should do that on time because time is of the essence so that  we pass it very quickly,” Gbajabiamila said.

He assured them that strengthening the NLC, which happens to be an umbrella body of unions in the formal and informal sector, is key as it would encourage a stronger democracy in the country protecting the interest of Nigerians.

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READ ALSO: FG exempts tuition fees, basic food items, others from 7.5% VAT  

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What you should know

Casualisation is the practice of employing temporary staff for short periods and is often aimed at saving costs.

The Labour Act (Amendment) Bill 2019 awaiting second reading by the House proposes criminalising employing of workers on casual contracts beyond six months. It also proposes that any casual workers sacked by an employer after six months will be entitled to the benefits of full-time workers for six months, and prohibits outsourcing to third parties.

 

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Business News

Lekki regional road: Sanwo-Olu revokes land titles of Elegushi Royal family

Babajide Sanwo-Olu to reclaim the encroached alignments of the Lekki Regional Road, the state government has revoked the land titles

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COVID-19: Lagos State to begin curfew on Sunday to disinfect metropolis, Lagos state government discharges 7 more coronavirus patients, Lagos state will reverse to full lockdown, Sanwo-Olu to virtually inaugurate projects as he presents scorecard of first year in office, Lekki regional road: Sanwo-Olu revokes land titles of Elegushi Royal family

In line with the order from Lagos State Governor, Babajide Sanwo-Olu, directing the Ministry of Physical Planning and Urban Development to reclaim the encroached alignments of the Lekki Regional Road, the state government has revoked the land titles and planning approval on sections of Elegushi Royal Family land.

The affected sections of the land fall within the designated Right-of-Way (RoW) of the road which is about to be constructed.

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According to the Commissioner for Physical Planning and Urban Development, Dr. Idris Salako, the revocation is meant to remove all impediments to the ongoing construction.

READ ALSO: Lagos commends religious leaders in the state, churches and mosques to remain closed

“The part of the Elegushi Chieftaincy Family layout, which falls within 29 coordinates in the 500 hectares approved for the family in the 1991 Lagos Metropolitan Master Plan, was found in the alignment” he explained.

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“Consequently, take notice that by virtue of Section 21(1) (a) of Lagos State Urban and Regional Planning and Development Law, 2015, I hereby revoke in part, a section of Elegushi Chieftaincy Family Layout that falls within the established coordinates.”

(READ MORE: Lagos Multi-billion naira rice mill nears completion)

Salako noted in his statement that the ministry is acting on the governor’s orders to mop out all structures including private housing estates and shanties that encroach the Right of Way, and invoking the necessary sections to cancel the planning approval on layout captured in the affected coordinates.

Lekki regional road: Sanwo-Olu revokes land titles of Elegushi Royal family

Sanwo-Olu had flagged off the construction of the 8.75 kilometer-long road on Saturday, and given the supervising ministry the orders to reclaim the alignments that were gazetted for the road.

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As part of the Lagos Metropolitan Master Plan, the road is a precursor to the proposed fourth mainland bridge, which the governor has said will start in early 2021.

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