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Business News

FG to reduce N1.5 trillion from 2020 budget due to coronavirus

Mrs. Zainab Ahmed disclosed that the Federal Government has plans to reduce N1.5trn from the N10.59trn 2020 Appropriation Act.

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FG seeking approval from National Assembly for $1.2 billion agric loan, Capital market to get more tax incentives - FG , FEC reviews Ajaokuta-Kaduna-Kano gas project contract, approves $2.571 billion, FG to reduce N1.5 trillion from 2020 budget due to coronavirus

The Federal Government has disclosed plans to reduce the 2020 budget by as much as  N1.5 trillion.

The disclosure was made by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, while briefing State House correspondents at the end of the Federal Executive Council, (FEC) meeting presided over by President Muhammadu Buhari at the Council Chamber, Presidential Villa, Abuja.

COVID-19: How the tables turned on Europe, New Tech Opportunities amid COVID-19 Crisis, FG to reduce N1.5 trillion from 2020 budget due to coronavirus

Ahmed said that there will be a cut of 20% from the capital expenditure of the 2020 budget while recurrent expenditure will be reduced by as much as 25%. Recall that She had earlier in the month hinted at the possibility of reducing the 2020 budget due to the coronavirus outbreak.

(READ MORE: COVID-19: President Buhari sets up committee to look at impact on 2020 budget)

According to Ahmed, Buhari had approved other far-reaching measures in the face of the current economic realities occasioned by COVID-19. One of those measures is the cut in crude oil benchmark from $57 per barrel to $30 per barrel in the revised budget. The global crude oil prices are now less than $30 per barrel.

Ahmed’s words: “We should cut down on the size of the federally funded upstream projects of the Petroleum sector. The reason being that we want to be able to receive more revenue by less reduction from NNPC. 

“The reduction of the crude oil price from $57 per barrel to $30 means that we are going to get so much less revenue, almost 45 percent loss as we planned. And because of that, we have to amend a number of projections in the budget as well as in the MTEF to reflect our current reality. 

“We also need to adjust Customs revenue which has been budgeted at N1. 5 trillion but we are adjusting it downwards because we anticipate that trade volumes will reduce and once trade volume is reduced, Customs revenue will be significantly impacted as a result.”

READ MORE: Importing petroleum products must stop, NNPC has over $20bn assets – Kyari 

Speaking further, Ahmed said the government would continue to pay salaries and would not sack workers, but would not be recruiting or increasing its workforce size for the time being.  

On concerns of the economy slipping back into recession, Ahmed said the budget cut would result in about 40 to 45% reduction and also it will affect states because it means FAAC will be significantly reduced.

“FAAC is just a pool of funds and we share what is realized, so it will affect the states as well. So we are expecting the states to take similar measures to amend the plans that we have made and bring them down to current realities.

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“On plans to scale back VAT and excise duty, I am not making any commitment on that right now because these are provisions in the law in the Finance Act and as you know, we will, even in the amendment to the MTEF and the budget, have to engage with the National Assembly. The fiscal authorities are working with the fiscal authority team and we will get the President’s approval before we come up with what we will announce to the public.” Ahmed added.

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Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Companies

Peter Obaseki resigns as Director from the Board of FCMB Plc

Mr Peter Obaseki has resigned as a Director on the Board of FCMB Group Plc.

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First City Monument Bank Ltd issues N20 billion commercial paper

The Board of FCMB Group Plc has announced the resignation of Mr Peter Obaseki as an Independent Non-Executive Director of the company.

The notification is part of the decisions reached at the company’s Board meeting held today, 26th of February, 2021.

According to the disclosure signed by the company’s secretary, Mrs. Olufunmilayo Adedibu, the resignation of Mr Obaseki from the Board of the company will become effective from 1st of March, 2021.

In lieu of this, the Board wished the outgoing Director well in his future endeavours and accepted his resignation in good faith. Other decisions reached at the Board of Directors’ meeting include;

  • The Board considered and approved the appointment of an Independent Non-Executive Director, subject to CBN approval.
  • It also considered and approved the Group’s audited financial statements for the year ended December 31, 2020 as well as payment of Dividend, subject to the approval of the CBN.

What you should know about Obaseki:

  • Mr. Peter Obaseki has over 27 years working experience across financial consulting and banking. Prior to joining FCMB Plc in 1997, Mr Obaseki gained valuable experience in firms like KPMG, Ani, Ogunde & Co and some banks.
  • He is a fellow of the Chartered Institute of Bankers and was appointed an executive director of FCMB in September 2008.
  • Apart from being an Independent Non-Executive Director, Mr. Peter Obaseki also doubled as the Chief Operating Officer of FCMB.

FCMB closed trading with a share price of N3.03 as at the 26th of February 2021.

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Corporate Press Releases

AXA Mansard emerges Best Health Insurance Product Winner 2021

The winning product was the AXA Platinum Plus Cover which has been specially designed to provide a world-class health cover for the insurer’s customers.

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Health Management Organization, AXA Mansard Health Limited, recently announced that it has emerged as the winner of the best health insurance product of the year in the Insurance Product & Process section of the just concluded 11th Annual Global Banking and Finance Awards 2021.

The winning product was the AXA Platinum Plus Cover which has been specially designed to provide a world-class health cover for the insurer’s customers. With access to roam over 1,700 hospitals locally, care in India, UAE and South African hospitals and limited in-patient cover in the UK, France, and Germany for up to $1000 in healthcare benefits.

The product provides enrolees with benefits such as twenty-four-hour dedicated Telemedicine service, home vaccination service, free home delivery of special medications, partnership with healthy eating restaurants, and smarter budget-friendly discounts on healthy meals.

Speaking on the award, Chief Executive Officer, AXA Mansard Health Limited, Tope Adeniyi, said “We thank our highly esteemed customers for this prestigious award, as they are the reason, we passionately drive to improve our product offerings and execute innovative initiatives. This award is recognition of our unflinching commitment to our customers and an affirmation of our current position as the leading health insurance company in the country.”

AXA Mansard Health has a twenty-four-hour call centre, a team of highly trained and dedicated professionals, service portals at all AXA Mansard Welcome Centres nationwide and has deployed state-of-the-art technology to attain operational excellence while contributing to prompt service delivery and overcoming of challenges being encountered in the Nigerian health insurance industry.

Whilst thanking the organizers, Adeniyi noted that “the company is counting on the continued support of our stakeholders to continuously provide superior customer experience and to develop more innovative and value-adding products. We will continue to innovate, create new products, improve our product offering and refine our service delivery to ensure we continuously meet the changing needs of our customers”.

AXA Mansard Health Limited is the Health Maintenance Organization (HMO) arm of the AXA Mansard group of companies. The HMO is geared to promote her members’ wellbeing.

The HMO serves all clients across the country virtually and has established functional offices in Lagos (the head office), Abuja, Port-Harcourt, Enugu, with ongoing plans to open offices in other locations.

Global Banking & Finance Review is a leading Online and Print Magazine, which has evolved from the growing need to have a more balanced view, for informative and independent news within the financial community.

Since its inception in 2011, The Awards reflect the innovation, achievement, strategy, progressive and inspirational changes taking place within the Global Financial community. According to the magazine’s publishers the awards were created to recognize companies prominent in their areas of expertise and excellent in financial service delivery.

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