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11042019 - INSECURITY: Senate condemns killings; insists on State Police

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VANGUARD, THURSDAY, APRIL 11, 2019—9<br />

Fuel subsidy, Nigeria’s biggest fiscal<br />

burden —LCCI<br />

•As NNPC denies inflating fuel import figures<br />

By Udeme Akpan,<br />

Mike Eboh &<br />

Prince Okafor<br />

Lagos Chamber of<br />

Commerce and Industry,<br />

LCCI, has described fuel<br />

subsidy which the World<br />

Bank said cost Nigeria<br />

N731 billi<strong>on</strong> in 2018, as the<br />

biggest fiscal burden<br />

currently staring the<br />

nati<strong>on</strong>’s ec<strong>on</strong>omy in the<br />

face.<br />

LCCI, which resp<strong>on</strong>se<br />

was based <strong>on</strong> the World<br />

Bank report, released <strong>on</strong><br />

M<strong>on</strong>day in Abuja focussed<br />

<strong>on</strong> key developments in<br />

Nigeria’s ec<strong>on</strong>omy in 2018,<br />

added am<strong>on</strong>g other things<br />

that the Excess Crude<br />

Account, ECA, was virtually<br />

depleted during the period.<br />

In November 2018, the<br />

bank had also stated in<br />

another report entitled:<br />

‘Nigeria Bi-annual<br />

Ec<strong>on</strong>omic Update for Fall<br />

2018,’ that petrol subsidy<br />

deducti<strong>on</strong>s for 2017 full<br />

year was N107.3 billi<strong>on</strong>, but<br />

its current report showed<br />

that N731 billi<strong>on</strong> was spent<br />

in 2018 al<strong>on</strong>e.<br />

It had stated that most of<br />

the petrol volumes Nigeria<br />

spent m<strong>on</strong>ey to subsidise in<br />

2018 were inflated as daily<br />

c<strong>on</strong>sumpti<strong>on</strong> rose to 54<br />

milli<strong>on</strong> litres per day (ml/<br />

d) from 40ml/d in 2017,<br />

ostensibly due partly to outsmuggling.<br />

But Director General,<br />

LCCI, Mr. Muda Yusuf,<br />

said: “Perhaps the biggest<br />

fiscal burden <strong>on</strong> the<br />

ec<strong>on</strong>omy today is the<br />

petroleum subsidy regime.<br />

It is a big hole in the<br />

finances of government. It<br />

puts tremendous pressure<br />

<strong>on</strong> the foreign reserves and<br />

the foreign exchange<br />

market, just as it exerts<br />

immense stress <strong>on</strong> the<br />

nati<strong>on</strong>’s treasury.<br />

“It remains a cause for<br />

c<strong>on</strong>cern that the subsidy<br />

regime had subsisted,<br />

especially at a time when<br />

the ec<strong>on</strong>omy is facing<br />

unprecedented fiscal<br />

challenges; at a time when<br />

productivity in the<br />

ec<strong>on</strong>omy is c<strong>on</strong>strained by<br />

acute infrastructure deficit;<br />

at a time when public<br />

instituti<strong>on</strong>s are finding it<br />

hard to fund their basic<br />

obligati<strong>on</strong>s. There cannot<br />

be a better example of<br />

resource misapplicati<strong>on</strong>.<br />

“There are two<br />

comp<strong>on</strong>ents of this: The first<br />

is the genuine subsidy,<br />

which is the differential<br />

between the pump price<br />

and the landing and other<br />

costs of fuel. The sec<strong>on</strong>d<br />

[and more disturbing comp<strong>on</strong>ent]<br />

is the transparency<br />

problems inherent in the<br />

fuel subsidy administrati<strong>on</strong>,<br />

including the petroleum<br />

equalisati<strong>on</strong> policy.<br />

For several years, the<br />

ec<strong>on</strong>omy suffered severe<br />

bleeding from this phenomen<strong>on</strong>.<br />

“One of the critical<br />

elements of the Oil and Gas<br />

Sector reform, particularly<br />

the downstream sector, is<br />

the complete deregulati<strong>on</strong><br />

of the sector. This is the<br />

spirit of the Petroleum<br />

Industry Bill which,<br />

regrettably, has not seen<br />

the light of the day. The<br />

reform of the oil and gas<br />

sector would create a<br />

number of advantages for<br />

the ec<strong>on</strong>omy.<br />

“It will free resources for<br />

investment in critical<br />

infrastructure such as<br />

power, roads, the rail<br />

system, health sector,<br />

educati<strong>on</strong> sector etc. The<br />

deficit in all of these<br />

infrastructure areas is<br />

phenomenal."<br />

CONFERENCE: From left—Founder, T<strong>on</strong>y Elumelu Foundati<strong>on</strong>, Mr T<strong>on</strong>y Elumelu; Minister<br />

of Digital Agenda and Telecom, Belgium, Phillipe De Backer; Director of leading European<br />

Think-Tank, ECDPM, Carl Michiels; Advisory Board member, T<strong>on</strong>y Elumelu Foundati<strong>on</strong> and<br />

former Prime Minister of Benin Republic, Li<strong>on</strong>el Zinsou; Advisory Board member, T<strong>on</strong>y Elumelu<br />

Foundati<strong>on</strong>; and recently retired CEO of German Investment Corporati<strong>on</strong> (DEG, Bruno Wenn,<br />

at the panel discussi<strong>on</strong> titled: A C<strong>on</strong>vening <strong>on</strong> Africa’s Ec<strong>on</strong>omic Transformati<strong>on</strong>: A Case<br />

Study of The T<strong>on</strong>y Elumelu Foundati<strong>on</strong>, held at Brussels, Belgium, yesterday.<br />

MTEF: Reps approve N1.64trn loan to fund<br />

2019 budget ...ask FIRS to increase tax <strong>on</strong> luxury goods, services<br />

By Levinus<br />

Nwabughiogu<br />

ABUJA—HOUSE of<br />

Representatives<br />

yesterday, approved the<br />

sum of N1.64 trilli<strong>on</strong> as<br />

benchmark for loan to fund<br />

the 2019 budget of the<br />

Federal Government.<br />

It will be recalled that the<br />

Federal Government had<br />

proposed N1.86 trilli<strong>on</strong> in<br />

the 2019-2021 Medium<br />

Term Expenditure<br />

Framework, MTEF and<br />

Fiscal Strategy Paper for the<br />

fiscal year ending<br />

December 31, 2019<br />

submitted to the Nati<strong>on</strong>al<br />

Assembly last year.<br />

The amount approved<br />

was recommended by<br />

Committees <strong>on</strong> Finance,<br />

Appropriati<strong>on</strong>s, Aids,<br />

Loans and Debt<br />

Management, Legislative<br />

Budget and Research and<br />

Nati<strong>on</strong>al Planning and<br />

Ec<strong>on</strong>omic Development<br />

which sat <strong>on</strong> the MTEF<br />

and FSP documents.<br />

C<strong>on</strong>sidering the report of<br />

the committees in the<br />

Committee of the Whole,<br />

the House adopted the five<br />

different recommendati<strong>on</strong>s<br />

as submitted by the<br />

chairman of the House<br />

Committee <strong>on</strong> Finance,<br />

Mr. Babangida Ibrahim.<br />

Ibrahim had in his<br />

remarks urged the House<br />

to adopt the<br />

recommendati<strong>on</strong>s of the<br />

joint Committees to pave<br />

way for c<strong>on</strong>siderati<strong>on</strong> and<br />

passage of the 2019<br />

Budget.<br />

The recommendati<strong>on</strong>s<br />

include adopti<strong>on</strong> of 2.3<br />

milli<strong>on</strong> barrels of crude oil<br />

producti<strong>on</strong> as daily<br />

producti<strong>on</strong> target; that the<br />

government adopts $60 as<br />

benchmark for crude oil in<br />

the 2109 fiscal year; That it<br />

also adopts N305 to USD1<br />

as official exchange rate for<br />

the fiscal year 2019; Adopt<br />

the recommendati<strong>on</strong> of<br />

N1.64 trilli<strong>on</strong> as new<br />

borrowing to fund budget<br />

deficit and advises relevant<br />

agencies to c<strong>on</strong>tinue<br />

exploring ways of<br />

generating additi<strong>on</strong>al<br />

revenues for government to<br />

bring down the fiscal<br />

deficit.<br />

“That the sum of<br />

N500billi<strong>on</strong> <strong>on</strong>ly special<br />

interventi<strong>on</strong> fund is<br />

adopted to enjoin the<br />

cooperati<strong>on</strong> of relevant<br />

committees and other<br />

relevant ministries,<br />

departments and agencies<br />

MDAs in ensuring that the<br />

funds are judiciously<br />

utilized to provide a<br />

positive tangible impact of<br />

the funds <strong>on</strong> the Nigerian<br />

people.”<br />

Other<br />

sub<br />

recommendati<strong>on</strong>s of the<br />

committees also adopted<br />

were that the Federal<br />

Government should<br />

c<strong>on</strong>sider reducing the<br />

granting of waivers and<br />

exempti<strong>on</strong>s while ensuring<br />

that the Nigerian Customs<br />

Service pers<strong>on</strong>nel are at all<br />

oil terminals for<br />

accountability and the<br />

Federal Inland Revenue<br />

Service should c<strong>on</strong>sider<br />

increasing tax <strong>on</strong> luxury<br />

goods and services.<br />

The House also adopted<br />

the recommendati<strong>on</strong> that 20<br />

percent operating surplus<br />

to be remitted by<br />

government owned<br />

enterprises should be<br />

deducted bat source.<br />

$30,000 lobby allegati<strong>on</strong><br />

Buhari’s camp peddling<br />

shameless lies —Atiku<br />

By Dirisu Yakubu<br />

Acandidate BUJA—Presidential<br />

of the<br />

Peoples Democratic Party,<br />

PDP, in the 2019 electi<strong>on</strong>s,<br />

Alhaji Atiku Abubakar, has<br />

described as “total<br />

fabricati<strong>on</strong>,” the allegati<strong>on</strong><br />

allegedly instigated by the<br />

President Muhammadu<br />

Buhari campaign team that<br />

he had hired a United<br />

<strong>State</strong>s of America lobby<br />

group at a sum of $30,000<br />

to persuade the country’s<br />

c<strong>on</strong>gress not to recognise<br />

the re-electi<strong>on</strong> of President<br />

in the February 9, 2019<br />

electi<strong>on</strong>.<br />

Reacting to what he called<br />

“shameless lies,” Atiku’s<br />

Media Adviser, Mr. Paul<br />

Ibe, yesterday, said the<br />

latest “Dirty propaganda<br />

against the former Vice<br />

President didn’t come as a<br />

surprise to us because lying<br />

has so far become their <strong>on</strong>ly<br />

bragging rights of<br />

competence.”<br />

In a statement in Abuja,<br />

Ibe said, “Lying has become<br />

a culture to the All<br />

Progressives C<strong>on</strong>gress,<br />

APC, administrati<strong>on</strong> and<br />

therefore, we are not<br />

surprised by their latest<br />

diversi<strong>on</strong>ary allegati<strong>on</strong>s.<br />

Since Atiku resisted<br />

pressure not to go to court,<br />

the APC has been<br />

behaving like a cat <strong>on</strong> hot<br />

bricks because the outcome<br />

of the 2019 electi<strong>on</strong>s has<br />

exposed and shattered the<br />

facade of their dubious<br />

integrity.<br />

“The APC is behaving<br />

nervously like a thief living<br />

under the fear of being<br />

exposed and shamed.<br />

They are now using fake<br />

news against Atiku instead<br />

of focusing <strong>on</strong> defending<br />

themselves in the court. For<br />

a party that has broken the<br />

worst record in electi<strong>on</strong><br />

rigging, the APC doesn’t<br />

have any iota of integrity to<br />

be taken seriously by<br />

anybody."<br />

Lawan already has 73 votes,<br />

says <str<strong>on</strong>g>Senate</str<strong>on</strong>g> spokesman as<br />

CSOs back APC<br />

By Henry Umoru<br />

ABUJA—AHEAD of the<br />

inaugurati<strong>on</strong> of the 9th<br />

<str<strong>on</strong>g>Senate</str<strong>on</strong>g> and the coming <strong>on</strong><br />

board of new Presiding<br />

officers, Chairman, <str<strong>on</strong>g>Senate</str<strong>on</strong>g><br />

Committee <strong>on</strong> Media and<br />

Public Affairs, Senator Aliyu<br />

Sabi Abdullahi (APC,<br />

Niger North), yesterday,<br />

said that the <str<strong>on</strong>g>Senate</str<strong>on</strong>g> Leader,<br />

Senator Ahmad Lawan<br />

(APC, Yobe) will have 73<br />

Senators from across party<br />

lines to vote for him.<br />

This is as a coaliti<strong>on</strong> of<br />

civil society organizati<strong>on</strong>s<br />

(CSOs), led by Centre for<br />

Policy Advocacy and<br />

Leadership Development<br />

(CPALD) threw its weight<br />

behind the emergence of<br />

Senator Ahmed Lawan as<br />

next President of the<br />

<str<strong>on</strong>g>Senate</str<strong>on</strong>g> describing his<br />

adopti<strong>on</strong> by the All<br />

Progressives C<strong>on</strong>gress<br />

(APC) as in line with<br />

global parliamentary best<br />

practices.<br />

In a release signed <strong>on</strong><br />

their behalf by the Director,<br />

Democracy and<br />

Governance of CPALD,<br />

Comrade Joe Mesele, the<br />

CSOs said:<br />

“We have watched with<br />

keen interest for some<br />

weeks now debates as to<br />

the proprietary of the<br />

leadership of the APC in<br />

nominating Senator Ahmed<br />

Lawan as its Candidate for<br />

the President of the <str<strong>on</strong>g>Senate</str<strong>on</strong>g><br />

of the 9th Assembly. We at<br />

the Centre for Policy<br />

Advocacy and leadership<br />

Development al<strong>on</strong>gside<br />

ten of our sister CSOs<br />

hereby unequivocally state<br />

that we are <strong>on</strong> the same<br />

page in advancing the<br />

course of democracy in<br />

Nigeria and therefore view<br />

the development as<br />

welcome because it’s in line<br />

with internati<strong>on</strong>al<br />

Parliamentary best<br />

practices. We have studied<br />

Parliamentary<br />

developments in several<br />

advanced democracies and<br />

came to the c<strong>on</strong>clusi<strong>on</strong> that<br />

the leadership of those<br />

Parliaments are usually<br />

members with the requisite<br />

cognate experience –<br />

Usually leaders of the<br />

ruling party’s caucuses.<br />

And right now in Nigeria,<br />

the leader of the APC<br />

caucuses in the <str<strong>on</strong>g>Senate</str<strong>on</strong>g> is<br />

Senator Ahmed Lawan. He<br />

is therefore, without<br />

sentiments, eminently<br />

qualified to hold the<br />

positi<strong>on</strong>.”<br />

Lawan ahead<br />

Addressing journalists<br />

yesterday, in Abuja, Senator<br />

Abdullahi who is the<br />

spokesman of the Ahmad<br />

Lawan for <str<strong>on</strong>g>Senate</str<strong>on</strong>g><br />

President, said “Let me say<br />

very clearly that the nature<br />

of parliament is such that<br />

you cannot shut anybody<br />

out. It is not possible. I want<br />

Nigerians who look at those<br />

of us who are the actors and<br />

take note of what we say.<br />

That is the most important<br />

thing.<br />

“I want to submit and<br />

assure Nigerians that by<br />

the special grace of God, if<br />

Senator Lawan gets there,<br />

he will run an all inclusive<br />

government because the<br />

<str<strong>on</strong>g>Senate</str<strong>on</strong>g> is the <str<strong>on</strong>g>Senate</str<strong>on</strong>g> of the<br />

Federal Republic of<br />

Nigeria. The 109 senators<br />

are individual senators<br />

representing the various<br />

senatorial districts in the<br />

country. They have<br />

inalienable rights to be<br />

heard and listened to for<br />

government to work for<br />

them no matter our<br />

differences and no matter<br />

the sentiments that we<br />

share.

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