Business News
FG to adjust 2020 budget as Coronavirus affects crude oil
Zainab Ahmed has disclosed that FG would review the 2020 Budget and make some adjustment as Coronavirus outbreak impacts crude oil revenues globally.
The Minister of Finance and Budget Planning, Zainab Ahmed, has disclosed that the Federal Government would review the 2020 Budget and make some adjustment as Coronavirus outbreak impacts crude oil revenues globally. She said the drop in oil revenue has the government worried.
According to her, the Federal Government would begin a mid-term review of the budget soon to determine the way forward. Ahmed disclosed this during the Federal Executive Council meeting in Abuja, which was chaired by President Muhammadu Buhari.
Ahmed further stated that “We are concerned about the current drop in oil price because it’s now below our budget. We will do a mid-term review, and if the impact is so much, we will need to do an adjustment in the budget, working together with the National Assembly.”
The adjustment was considered because the budget has oil benchmark of $57 per barrel, but as of Wednesday, the Brent Crude oil price hovered around $53 per barrel, and as at the time the N10.59 trillion budget was signed into law in December last year, it was $60 per barrel. And with coronavirus infection piling pressure on the market, another decline is expected.
[READ MORE: FG calls for annual Finance Bill review to fund budget)
The Coronavirus pandemic continues to spread throughout the world whilst grounding some economies (like China) to a halt. Nigeria confirmed its first case on February 28, 2020, making this the third reported case in Africa after the ones reported in Egypt and Algeria.
There’s a saving grace: With about $4 already lost, Ahmed said the loss could be recovered if daily oil production rises above the budgeted two million barrels.
“I am glad to inform you that our oil production as of today is two million barrels per day and at times slightly higher like 2.1 million. That in its self will be a cushioning effect for us in the current oil price.”
Although Nairametrics had reported that the decline in Brent Crude had also intensified speculation that the Organisation of Petroleum Exporting Countries (OPEC) and its allies might have no choice but to quickly reach a decision on a new output cut that would support oil prices.
Ahmed also commented on the revised sum of $2.5 billion for the Ajaokuta-Kaduna-Kano gas pipeline project, which she said would ensure job creation and increase in revenue to the government. The amount was revised downward from the initial $2.89 billion proposed in 2017.
Energy
Nigeria to fix irregular power supply in 40 years- Senate
The four decades is needed due to underfunding and the FG’s failure to fix the challenges of electricity generation.
The Nigerian Senate has said that it will take Nigeria 40 years to fix irregular power supply.
This was disclosed by the Senate Committee on Power on Tuesday after the Minister of Power and his team made a presentation to the Committee, according to Guardian.
The four decades wait, according to the lawmakers, is due to underfunding and the Federal Government’s failure to fix the challenges of electricity generation.
The committee was astonished by the submission of the Minister of Power, Mamman Saleh, that of the N165billion required for capital projects in 2020, N4billion was given as bribe of which only N3billion was cash-backed.
In lieu of this, the Committee dismissed claims made by the minister over raising hope on early provision of constant power supply, while Managing Director of the Transmission Company of Nigeria (TCN), Sule Ahmed Abdulaziz, painted a gloomy picture during the ministry’s budget defense.
A member of the Committee, Danjuma Goje, expressed concern that based on Abdulaziz’s presentation, N165billion was proposed, but the ministry gave N4billion in envelope, insisting that it would take 41 years to deliver constant electricity when N165billion is divided by N4billion.
Backstory
Recall that Nairametrics had earlier reported that it will take nothing less than $100 billion to enable stable power supply in Nigeria.
What they are saying
Mr. Danjuma expressed pessimism over hopes of stable power supply in the country. He went as far as stressing that even if ongoing projects are being completed there is still no hope for stable transmission of power in the country.
Mr. Danjuma was quoted as saying: “Going by the minister’s presentation that transmission gas increased from 5000 to 8000 megawatts, it is not enough. When dishing out figures, we should bear in mind that capacity, transmission, and distribution have increased and that Nigerians, manufacturers, and industrialists want to see stable electricity.”
ENDSARS
#EndSARS: ECOWAS calls for protesters to remain peaceful in their demonstrations
ECOWAS has called on protesters to be peaceful in conducting their protests.
The Economic Community of West African States (ECOWAS), has called on protesters to be peaceful in conducting their protests and urged Nigerian security operatives to exercise restraint in the handling of protests.
This was disclosed in a statement by the organization on Tuesday and comes on the heels of statements by other International bodies and personalities, who have expressed worry over the nature of brutality meted on protesters, especially after the Lekki shootings.
Press Release on #ENDSARS Protests in Nigeria pic.twitter.com/hht0YjVclo
— ECOWAS-CEDEAO (@ecowas_cedeao) October 27, 2020
“ECOWAS Commission notes with concern that demonstrations by Nigerian youth calling for Police reforms, particularly the abolition of the Special Anti-Robbery Squad (SARS) of the Nigerian Police force, accused of misconduct by those demonstrating, have turned violent,” they said.
The body said it recognizes the right to peaceful protests and also called for protesters to be peaceful, due to the rising reported cases of lootings post protests during the curfews.
“While ECOWAS recognizes the right of citizens to freedom of expression and peaceful assembly and protests, it also wishes to stress that those rights should be exercised in a nonviolent manner.
“In this regard, ECOWAS calls on all protesters to remain peaceful in the conduct of their demonstrations. It also urges the Nigerian security operatives to exercise restraint in the handling of the protests and act professionally.”
Bottomline
The tone of ECOWAS’ message is different compared to the rest of other stakeholders including the statement of the Lagos State Governor, House of Reps Speaker, and the Vice President, who all acknowledged that the protests were peaceful and the protesters were attacked and that the violence from the curfews was not done by the protesters but by hoodlums.
The ECOWAS message is also the first statement by West Africa’s most important regional body since the #EndSARS protests started in the first week of October.
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