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2021 Budget: Education and Health sectors to gulp N1.76 trillion

A total sum of N1.76 trillion has been allocated to the Health and Educational sectors in the 2021 budget.

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See what FSDH is saying about the 2020 budget and FG’s revenue drive , 2020 budget

A total sum of N1.76 trillion has been allocated to the Health and Educational sectors in the 2021 budget, indicating a 56.3% increase from the N1.13 trillion allocated in the 2020 budget. The breakdown of the allocation in the 2021 budget includes the total sums of N1.13 trillion allocated to the Education sector and N632.7 billion allocated to the Health sector.

This is according to a verified tweet by the official handle of the Ministry of Finance, Budget and National Planning.

The total sum of N1.13 trillion allocated to the Education sector in 2021 is 64.5% higher than the N686.8 billion allocated to the sector in the 2020 budget. Similarly, the N632.7 billion allocation to the Health sector in 2021 is up by 43.5% compared to the N441.0 billion for the sector in 2020.

Backstory

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Nairametrics had earlier reported key highlights of the 2021 budget tagged “Budget of Economic Recovery and Resilience” which indicated an increase of 27% from its 2020 figures.

Education

  • Of the N1.13 trillion allocated to education in the 2021 budget, N742.52 billion is meant for the Recurrent and Capital Expenditure of the Federal Ministry of Education and its agencies.
  • N70.05 billion is budgeted for the provision of Universal Basic Education (UBEC).
  • N318 billion is budgeted for the provisions of infrastructure in tertiary institutions through TETFUND.

Health

  • Of the N632.7 billion budgeted for the Health sector, the Federal Ministry of Health got the lion share for Recurrent and Capital Expenditure at N546.98 billion.
  • Gavi/immunization funds were allocated N45.19 billion
  • Transfer to Basic Healthcare Provision Fund (BHCPF) at N35.03 billion and N5.5 billion counterpart funding for donor-supported programmes, which includes Global Fund

Why this matters

The importance of the Education and Health sectors to overall national development cannot be overemphasized. In lieu of this, many analysts and policymakers have continuously advocated for increased funding in both sectors.

The ravaging effect of the pandemic exposed a lot of vulnerabilities and funding gaps in the aforementioned sectors; therefore, the increase in the sectoral allocations will boost both key sectors. However, there is still room for development as the UNESCO 26% threshold for funding in the educational sector is yet to be met.

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FG says Second Niger Bridge will be completed in 2022, project to cost N414 billion

The Minister of Works and Housing, Babatunde Fashola, has said the second Niger Bridge will be completed by 2022.

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Second Niger Bridge will be completed in 2022, project, Minister of Power works and housing Babatunde Fashola, Shell Nigeria Exploration and Production Company, SNEPCo Bayo Ojulari, Power supply in Nigeria

The Federal Government has assured that the Second Niger Bridge project is on course and would be completed by 2022.

In the breakdown of the project cost which will cost the Federal Government about N414 billion, it said that the bridge alone would cost N206 billion, while ancillary roads linking the bridge would cost about N208 billion.

READ: Senate summons Fashola, Ahmed over contract sum variation for Second Niger Bridge, others

READ: Mining to contribute 3.0% to GDP by 2025

This disclosure was made by the Minister for Works and Housing, Babatunde Raji Fashola, during a town hall meeting with stakeholders and host communities of Second Niger Bridge on Friday, November 20, 2020.

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The minister also carried out a project update inspection of the main works and associated infrastructure of the Second Niger Bridge project in Anambra and Delta States.

He urged agitating persons in the area to think about the economic benefits of the project to them.

READ: FG to repatriate fresh $321million Abacha loot, to be spent on road construction 

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While pointing out that some grounds on the job had been lost owing to conflicts resulting from compensation, Fashola urged people who are agitating in the area, to think about the economic benefits of the project to them

He reminded the stakeholders and host communities that beyond the bridge and the roads, the materials needed for the construction were big economic empowerment for host communities and people of the two states of Anambra and Delta.

READ: Shutdown of OML 25 cost Nigeria over $1.7 billion – NNPC

READ: Nigerians pay heavy price as laptop scarcity bites harder

He said, “Let me speak to what this project will do, what it is doing and what it will be delivering. In order to complete this project, this company will be needing 644 aggregates. The contractors won’t import these; they will be buying them from here.

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“They will need four million cubic tonnes of sand; 68,000 tonnes of cement and 21,000 tonnes of re-enforcement. The company will need 19m litres of diesel which will be supplied by contractors as it does not produce diesel while 1400 indigenous workers will be employed to work on the bridge.

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READ: Lekki Deep Sea Port must be operational by 2022 – Amaechi

He noted that from the start of the project the price of land in the area began to go up.

Fashola has for some days, been making official visits to the 3 flagship projects under the Presidential Infrastructure Development Fund and assured of President Muhammadu Buhari’s commitment to the completion of these 3 projects by 2023.

These projects include the Abuja-Kaduna-Kano Dual Carriageway, the main works and associated infrastructure of the Second Niger Bridge and the reconstruction, rehabilitation and expansion of the Lagos-Ibadan Dual Carriageway.

READ: Power: Mambilla Power Project not prioritised by Ministry of Power for 2021 Budget – Finance Minister

 

 

 

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Nigeria needs huge funds for exploration projects – Minister of Mines, Steel

Minister of Mines and Steel Development has insisted that Nigeria needs huge funds for exploration projects.

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Nigeria to begin gold production in 2021 with the Segilola Gold Project, Nigeria to save $300 million from importation of barite 

The Nigerian mining sector needs huge funds for exploration projects in the country.

This was disclosed by the Minister of Mines and Steel Development, Olamilekan Adegbite in a statement issued by his media aide, Ayodeji Adeyemi on Monday.

He said, “Our focus is now on de-risking the sector, by the provision of more up-to-date and comprehensive data on mineral occurrences in Nigeria and enabling a more investor-friendly environment through favorable incentives.

READ: Banks guaranteed N3.6 billion loans to farmers under the ACGSF – CBN

READ: Crypto hedge fund, Polychain capital buys $8.2 million worth of yearn.finance

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“The ongoing National Exploration Project (NIMEP), is government’s rapid response to the dearth of investible geoscience data.”

The Minister also called on more youth to take advantage of the N75 billion Youth Investment fund, approved by the federal government.

Adegbite explained that the fund was set aside to nurture and develop entrepreneurship spirit amongst the youths.

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READ: Crypto hedge fund, Polychain capital buys $8.2 million worth of yearn.finance

He said, “This administration was interested in nurturing entrepreneurship spirit amongst the youth, viewing them as the leaders of tomorrow.

“The N75 billion fund is meant to assist youth who have good business ideas but no capital to back such ideas up. I want to encourage everyone who has a good idea to apply for the funds. You can get more details if you go to the website of the Ministry of Youths and Sport Development.”

He added that a minimum of N25 billion has been set aside each year for the next 3 years, totaling N75billion.

READ: Grayscale: World’s biggest Crypto hedge fund holds $8.35 billion worth of Bitcoin

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What you need to know

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The Loan, whose aim is to fund about 500, 000 youths from 2020-2023, has an approval range of between N250, 000 to N50million with a spread across group applications, individual applications, working capital loan set as one year and term loan set at three years with a single-digit interest rate of 5%.

READ: FG to establish Infrastructure company for critical investments in projects

The Ministry of Finance, Budget and National Planning (MFBNP) and the Central Bank of Nigeria (CBN) will provide the financing to kick-start the fund. Disbursement will be through various channels, which will include Micro Credit Organizations across the country under the Central Bank of Nigeria supported by BOI, Fintech Organizations and Venture Capital Organizations, registered with the CBN.

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Lekki Deep Sea Port must be operational by 2022 – Amaechi

The Transport Minister has given a directive for the Lekki Deep Sea Port project at Ibeju Lekki to be completed in 2022.

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Amaechi proposes a capital budget of N205 billion for Ministry of Transportation in 2021, FG approves $3 billion Port Harcourt-Maiduguri railway and $462 million Bonny deep seaport, Banks to hold shipowners accountable for $200m CVFF disbursement. FG sets deadline for completion of Ibadan-Kano rail project, gives reason for delay 

Mr. Rotimi Amaechi, Nigeria’s Minister of Transportation, has directed Dr. Magdalene Ajani, the Permanent Secretary of the Ministry, and the legal department to document an agreement with the Lekki Port LFTZ Enterprise Ltd., to ensure that the port becomes operational in 2022.

The Minister of Transportation gave this directive while inspecting the Lekki Deep Sea Port project at Ibeju Lekki, which is expected to be completed in 2022.

According to a news report by NAN, the agreement to commission the port in 2022 took place in Singapore. Hence, Mr. Amaechi wondered why the construction company was stating 2023 as the operational year of the port.

(READ MORE: Equipment needed for Deep Blue Project will be ready by March 2021 – Amaechi)

He reiterated that the sluggish pace of the construction of the port can not be fully attributed to the COVID-19 induced lockdown, although there had been hitches on the way. Thus, it is important that the project becomes operational by 2022.

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Why this matters

Upon completion, the Lekki Deep Sea Port would become the first deep seaport in Nigeria.

It would have two container berths of 680 meters long and 16.5 meters water depth, making it Nigeria’s Deepest Sea Port in the making, in the heart of the Lagos Free Trade Zone.

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The port will also have the capacity to be berthed by fifth-generation container ships with a capacity of 18,000 TEU ship.

(READ MORE: Lagos-Ibadan railway will be completed on or before January 2021 – Rotimi Amaechi )

Therefore, when completed it would take a lot of pressure off Apapa and Tin Can Island ports.

What they are saying

Commenting about the Lekki Deep Sea Project, Mr. Amachi said: “The contract for the facility was launched in March 2018, and as a layman, my views might not matter. However, we must tie them to a written agreement that it must be commissioned by President Muhammadu Buhari in 2022.

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“There are so many things tied to a port construction and many factors that can work against that date like force majeure issues or if anything goes wrong with the contractor. That is why we need to tie them to a verbal and written agreement that by 2022, Lekki port must become operational.”

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