Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
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.