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Nigeria Needs To Do More In Economy Diversification – Gov Bagudu

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Kebbi State Governor, Atiku Bagudu
Kebbi State Governor, Atiku Bagudu
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Kebbi State Governor, Atiku Bagudu has advocated heavy investment in other sectors of the nation’s economy if the much talked about diversification of the economy from oil and gas must be a reality.

Bagudu spoke Monday at a public hearing on a bill for an Act to establish the Nigerian economic diversification council organised by the Senate Committee on National Planning and Economic Affairs.

The governor, who is a former senator said Nigeria is a blessed nation in all sense of the world and “we need to support different sectors of Nigeria, we need to support different constituents of Nigeria to do better.

“We have done well in petroleum and gas not because it is the only sector, but that is where we put in the most money. Maybe we have put, on an average basis between 1990 to 2010, which have been investing about 10 billion dollars in petroleum and gas when I say we, it is both public and private sectors”.

According to him “if you measure how much has been going into agriculture, for example, in that period, maybe, it is less than 500 million dollars.”

He said it will not be surprising that the outcome will be different, adding, “may be if we take mining, whether it is gold, which every state has something to offer, again may be we have not invested as much.

For him, “diversification has restructuring is an element of that so that we support the constituent parts whether they are states or sectors so that each can contribute more than it is contributing.

“Some of the anger we have had in the land may be result from the lack of inclusion when oil production was contaminating water bodies or in the oil producing states.

“Those who hitherto used those freshwater bodies as sources of livelihood for fisheries so those water bodies were taken over by weeds. And they also got angry and they said it doesn’t matter, you can go on producing oil but what about us.

He said late President Umaru Yar’Adua recognised that we had an amnesty programme that was restraining them and similar things are happening elsewhere that if we recognise and provide legislative backing to our diversification quest, we will be able to tell the world we are serious about diversification.

“The evidence in the last seven years had some positive traction that we can build and we can do better and quicker, adding that “it’s a collective”.

“Nigeria is a trillion dollar investment destination. Nigeria, what is our federal budget, less than 35 billion dollars? Maybe the national assembly is about to pass the 2023 budget. I’m sure it won’t be up to 40 billion dollars. What is the budget of Brazil, a country that is similar to Nigeria in terms of population, about 700 billion dollars.

“So if somebody is taking care of 220 million people with 700 billion dollars, you are taking care of 200 with less than 10 per cent of that. Isn’t it a no brainer that you will not be able to achieve as much. But we have to all come together, we have to borrow more money if that is what is required or we have to support all sectors to produce more money so that we can fund all our priorities badly.

On the forthcoming election, he thinks “we have made a statement enough in Nigeria that everyone is convinced that free, fair and transparent elections always lead to more confidence in the society, less rancour in the society.

He said the value of free, fair and transparent elections is there for all to appreciate, adding “what is important is for everyone to see what more can I do to ensure that we have a free, fair and transparent election.

“Sometimes, we are all guilty in the sense that we think it’s somebody who should solve the problem.

However, he said even transparent elections do not guarantee the best outcomes, sometimes still, democracy is based on the appeal of populist leaders, leaders who are popular at a particular time.

“We should all play a role to ensure that our processes are strengthened And they are strengthened. Today INEC is enhancing the transparency of election by better accreditation, speedy accreditation, better transmission of results in good time, security agencies are helping, above all President Buhari has committed to free, fair and transparent election even in states where our party has lost elections.

“We are a blessed nation in all senses of the word and we have to support and we need to support different constituents of Nigeria”, he concluded.

Mr. Thomson Akpabio from Nigeria Employers Consultative Association (NECA) drew the attention of the committee to section 332 which stipulates 2% tax on imported textile while it imposes 10% on locally produced one thereby serving as a disincentive to local manufacturing.

The sponsor of the bill, Sabi Abdullahi (Niger North) expressed his delight that the public hearing was well attended as stakeholders made very meaningful contributions that will enrich the legislation.

 

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Business & Economy

FAAC: FG, States, LGCs Share N1.35trn July Revenue

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FAAC
FCCA
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Federal Government, States and Local Government Councils – have shared a total sum of N1,358.075 billion as of July 2024 Federation Accounts Revenue.

Of the N1,358.075 billion total distributable revenue, the Federal Government received a total sum of N431.079 billion, and the State Government received a total sum of N473.477 billion.

The Local Government Councils received a total sum of N343.703 billion, and a total sum of N109.816 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

The N1,358.075 billion total distributable revenue comprised distributable statutory revenue of N161.593 billion, distributable Value Added Tax (VAT) revenue of N582.307 billion and Electronic Money Transfer Levy (EMTL) revenue of N18.818 billion.

Also included in the total distributable revenue was Exchange Difference revenue of N581.710 billion and Solid Mineral revenue of N13.647 billion.

The revenue distribution was announced at the August 2024 meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja on Friday, August 16, 2024.

A communique issued by FAAC indicated that total revenue of N2,613.791 billion was available in July 2024. The total deduction for the cost of collection was N99.756 billion, while total transfers, interventions and refunds were N1,155.960 billion.

According to the communique, gross statutory revenue of N1,387.150 billion was received for July 2024. This was lower than the sum of N1,432.667 billion received in June 2024 by N45.517 billion.

Gross revenue of N625.329 billion was available from VAT in July 2024. This was higher than the N562.685 billion available in June 2024 by N62.644 billion.

On the N161.593 billion distributable statutory revenue, the communiqué stated that the Federal Government received N58.545 billion and the State Governments received N29.695 billion.

The Local Government Councils received N22.894 billion, and the sum of N50.459 billion (13% of mineral revenue) was shared with the benefiting states as derivation revenue.

From the N582.307 billion distributable VAT revenue, the Federal Government received N87.346 billion, the State Governments received N291.154 billion and the Local Government Councils received N203.807 billion

In a statement issued by Bawa Mokwa, the Director of Press and Public Relations in the Office of the Accountant General of the Federation, a total sum of N2.823 billion was received by the Federal Government from the N18.818 billion Electronic Money Transfer Levy (EMTL). The State Governments received N9.409 billion and the Local Government Councils received N6.586 billion.

On the N581.710 billion Exchange Difference revenue, the communique stated that the Federal Government received N276.110 billion and the State Governments received N140.047 billion.

The Local Government Councils received N107.970 billion, while the sum of N57.583 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

From the N13.647 billion Solid Mineral revenue, the Federal Government received N6.255 billion and the State Governments received N3.172 billion.

The Local Government Councils received N2.446 billion, while the sum of N1.774 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

As presented in the communiqué, in July 2024, Oil and Gas Royalty, Petroleum Profit Tax (PPT), VAT, Import Duty, EMTL and CET Levies increased significantly.

Furthermore, Companies Income Tax (CIT) recorded a decrease while Excise Duties increased only marginally.

The balance in the ECA was $473,754.57

 

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Tinubu To Present 2024 Supplementary Budget To NASS

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President Bola Tinubu Presenting 2024 Budget Proposal to the Joint Session of National Assembly
President Bola Tinubu Presenting 2024 Budget Proposal to the Joint Session of National Assembly
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President Bola Tinubu will soon present the 2024 Supplementary Budget to the National Assembly (NASS).

“I submitted the last budget to you,” the President said when he addressed a joint sitting of the National Assembly on Wednesday.

“You expeditiously passed it. We are walking the talk. I will soon bring the Year 2024 (Supplementary) Appropriation Bill. That is just for your information,” the President said in his terse speech at the joint sitting to mark the Silver Jubilee Of Nigeria’s 4th Republic.

In his response, Senate President Godswill Akpabio, said, “Thank you, Mr President, we will be expecting the Supplementary Appropriation Bill of 2024 as soon as possible.”

Also, at the joint sitting which coincided with the first anniversary of the Tinubu administration, the President confirmed ‘Nigeria, we hail thee’ as the “latest national anthem”.

Tinubu said, “You sang out the latest national anthem, ‘Nigeria, we hail thee’. This is our diversity, representing all characters and how we blend to be brothers and sisters.”

The President pleaded with both the Senate and the House of Representatives to continue to collaborate and work together with the administration to build the country on the path of sustained progress and development.

“We have no other choice; it is our nation. No other institution or personality will help us unless we do it ourselves. No amount of aid from foreign countries or any other nation (will fix us), they take care of themselves first. Let us work together as we are doing to build our nation, not only for us but for generations unborn,” he said.

 

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We Have No Magic Wand, Tackling Inflation Will Take Time — Cardoso

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Yemi Cardoso,CBN Governor
Yemi Cardoso,CBN Governor
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The Governor of Central Bank of Nigeria, Mr. Olayemi Cardoso has urged the citizens to be patient over the fight against current inflation and hike in food items in the country.

Cardoso disclosed this while briefing journalists at the end of the Monetary Policy Committee, MPC, meeting in Abuja.

The CBN governor mentioned that there was no magic needed to solve inflation in Nigeria but rather patience.

Also, Cardoso noted that despite pressure from food inflation, the general inflation rate was “moderating”, pointing out that “the tools the Central Bank is using are working”.

He stated, “I have several times and I will say again, there is no magic wand. These are things that need to take their time.

“I am pleased and confident that we are beginning to get some relief and in another couple of months we will see the more positive outcomes from the Central Bank have been doing.”

He added, “The committee thus reiterated several challenges confronting the effective moderation of food inflation to include rising costs of transportation of farm produce, infrastructure- related constraints along the line of distribution network, security challenges in some food producing areas, and exchange rate pass-through to domestic prices for imported food items.

“The MPC urged that more be done to address the security of farming communities to guarantee improved food production in these areas.

“Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system.”

The Central Bank of Nigeria has also blamed the recent volatility of the country’s foreign exchange market on seasonal demand for dollars.

“Members further observed the recent volatility in the foreign exchange market, attributing this to seasonal demand, a reflection of the interplay between demand and supply in a freely functioning market system,” a communique issued by the committee on Tuesday stated.

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