The Federal Executive Council, FEC on Monday proposed the sum of N26.01 trillion for the 2024 fiscal year to be submitted to the National Assembly.

The government said it was working towards ensuring that the January to December budget circle is maintained and that the 2024 budget is passed and signed before December 31, 2023.

The Minister of Budget and Planning, Atiku Bagudu, made the disclosure at the end of Council meeting presided over by President Bola Tinubu at the Council Chamber, Presidential Villa, Abuja.

Briefing State House correspondents at the end of the FEC, alongside his colleagues from Ministry of Information and National Orientation, Mohammed Idris, Minister of Finance and Coordinating Minister of Economy, Wale Edun, Works Engr. Dave Umahi, Industry, Trade and Investment, Doris Uzoka-Anite, Labour and Employment, Simon Lalong as well as the Minister of State for Labour, Nkeiruka Onyejecha, Bagudu said Council has approved the 2024-2026 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Papers, FSP.

He explained that the executive is required by the Fiscal Responsibility Act to present to the National Assembly ahead of a budget presentation, a document which will provide the medium term economic outlook for the economy.

Benchmarks

He said FEC made assumptions about reference price for the price of crude oil which is at $73.96, exchange rate is put $700, oil production of 1.78 million barrel per day.

Debt service N8.25 trillion while inflation is put at 21 percent and GDP growth at 3.76 percent.

He said, “Now, it was presented on the background of the commendable measures that have been taken since June in order to restore macroeconomic stability by particularly the deregulation of petroleum prices, which we maintained that subsidies are gone and indeed the regulation of the foreign exchange market.

“So Council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda consumer credits, mortgages, mortgage, reversed or dismissed institution as well as funding the newly aligned institutional changes particularly ministries with specific functions that are able to generate growth so that would be better for our country.

“The council members acknowledge the medium term expenditure framework, and it is agreed that we can go ahead to the next step of consultation and presentation to the National Assembly.”

He explained that “The Medium Term Expenditure Framework is a requirement of the Fiscal Responsibility Act. So as early as three document, so this Fiscal Responsibility Act is for the years 2024 to 2026.

“The several hundred of dollars reference price assumes optimism that investment flows will continue to come in. Given all the engagements, given all the positive tractions.

“We are seeing from investors from the engagement led by Mr. President personally, two different countries, in particular India, UAE and France, the engagements led by the coordinating Minister of the Economy engagement led by the trade and investment minister and indeed other ministers.

“So, now increasingly engagement made by the governor of the Central Bank of Nigeria, and indeed all other ministers. So we believe that these inflows will help us to clear the backlog and the exchange rate will begin to reflect a stronger value than the current weakness.

“There was a question on the assumptions. I spoke about a number of assumptions. The assumptions include oil price benchmark, which I said for 2024 we are assuming 73.96, oil production of 1.7 8 million barrels a day exchange rate of $700.

“Then the inflation of 21 percent and GDP growth rate of 3.76 percent . The aggregate expenditure is estimated at 26.01 trillion Naira for for the 2024 budget which includes statutory transfers of N1.3 trillion, non debt recurrent expenditure of N10.2 6 trillion debt service estimated at N8.2 5 trillion and as well as N7.78 trillion being provided for personnel and pension cost.

“Debt service increased because 22 point 7 trillion Naira with the expectation of scrutinizing the federal government debt at nine percent.

“So that is easily about 2.1 trillion Naira. This describes that equally personnel cost went up because of transfers under the agreement with labour.”

World Bank loan

The Minister of Finance and Coordinating Minister of the Economy, Edun while briefing said, “We also approved the application for financing from the World Bank. And in particular, the International Development Association which is really virtually free or zero interest lending arm or financing arm of the World Bank.

“The total is $1.5 billion. And the background is just as you heard from the Minister of planning and budget. The world today is one of high interest rates, as the developed world looks to fight inflation. They do it by restricting money, keeping interest rates high so that you can get inflation down. What that means is that interest rates for everybody else, become not just high but very painful, if not on affordable within that context.

Nigeria has been able to make the kind of macro economic moves, it has been able to take the tough decisions to restore balance in the economy in the government finances that has warranted support, that has gendered and has elicited support from the multilateral development banks.

“It’s on the basis of that, that the World Bank is willing to consider and to process on our behalf $1.5 billion of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.

“And that was what was presented to the Federal Executive Council and the members approved that we go ahead with that financing even that it is affordable.

“Secondly, an $80 million financing from the African Development Bank was also approved by the Federal Executive Council.

“This financing is for a project in Ekiti called the Ekiti knowledge zone Project EKZ. An EKZ is basically to support young people and their quest to take on technology to use it to be employed to be trained and to benefit from being part of the knowledge economy, being part of the technological wave that is present very much in Nigeria, which is becoming a bigger and bigger share of the economy.

“So it’s $80 million to help the young people in the sector of Knowledge Economy technology and communications generally.”

Roads…

Also briefing, the Minister of Works, Engr. Umahi said, “Today we presented a memo on an inherited scope of road infrastructure from the past administration and the total length of the roads we inherited and bridges was 18,897 kilometer.

“We also brought to notice of FEC that a number of projects were awarded some lasting up to 20 years back, abandoned, ongoing with no proper funding and so on and so forth. And there’s some new critical roads totaling 12,000 kilometers and 24 bridges.

“You know, FEC approved for the continuation of these inherited projects and the new proposal and directed that Federal Executive Council committee, Chief of Staff, Minister for Finance and Coordinating Minister of Economy, Minister for Works, Minister of Budget and Planning, GCEO/GMD of NNPLC, Chairman of FIRS and SSA on Tax Reform, to meet and come up with strategies to source for funds and everything patterning to the funding.

“Number two, FEC was also informed on the ongoing projects and to mitigate so much inflation and variation of the projects, to have some of the projects that have attended completion to be redesigned on concrete and going forward for new projects to be done on concrete.

“FEC approved that concept that most of the ongoing projects should be desired on concrete pavements depending on the level of completion and if you’re doing Asphalt there are also conditions for that.

“FEC also approved the coastal road running from Phase 1 which runs from Lagos to Port Harcourt to Calabar. Phase2 runs from from Sokoto to Ogoja. It was approved to be done on EBC + F, that is Engineering Procurement and Construction plus Financing.

“And that eight roads that were started in the past administration for concessioning that have gone through all the processes were also approved. That the financial closure should be reached in the month of November.

“There were nine actually but one was pulled out that is Lagos-Ota-Abeokuta and that has been given to the Ogun State government based on their request that they should do the road on their own and they will follow the HDMI that is Hardware Development Management Initiative.

“No refunds for that but they will do it and toll it. And new 25 roads were also approved for concessioning, which takes a very long time on the PPP (Public Private Partnership) model.

“Lastly, the PPP for Ijora park in Lagos. It was approved that it should be done on PPP. And it was won by Beta Nigeria Ltd, which was actually started by the last administration. So we just have to convey what they did to FEC which we got approval.

“Finally, the consultancy for NNPC and FIRS who oversee the projects funded by them was also approved today.”

Meanwhile, FEC meetings will now hold on Mondays away from Wednesdays that was held in the past.

Idris, however also said the meetings may not be held weekly until there are pressing issues to discuss.

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The upper legislative chamber also put the daily crude oil production at 1.88 million barrels per day and the exchange rate of N410 to a dollar.

The aforementioned assumptions, which the 2022 budget will be predicated on, were proposed by the federal executive council (FEC).

The upper legislative chamber did not make any adjustments to the assumptions of FEC chaired by President Muhammadu Buhari.

Before the senators passed the document, Solomon Olamilekan, chairman of the finance committee, while presenting a report, said there should be a continuous review of the Fiscal Responsibility Act to ensure that all revenues are remitted to the federation account.

The Lagos west senator said this would curtail “frivolous” deductions and diversion of funds by miniseries, departments and agencies (MDA).

“That the daily crude oil production of 1.88mbpd, 2.23mbpd, and 2.22mbpd for 2022, 2023 and 2024 respectively, be approved, in view of average 1.93mbpd over the past three years and the fact that a very conservative oil output benchmark has been adopted for the medium term in order to ensure greater budget realism,” he said.

“That the benchmark oil price of $57 per barrel should be approved because of the clear evidence of wide consultations with key stakeholders. and the age long fiscal strategy of addressing the oil price shocks by the adoption of a higher than forecast oil price benchmark for fiscal projections over the medium term.

“That the exchange rate of N410.15 to a dollar proposed by the executive for 2022-2024 be approved.”

The senate also approved the projected gross domestic product (GDP) growth rate of 4.20 percent and projected inflation rate of 13 percent.

At the international market, Brent oil price climbed by 1.4 percent to $75.44 a barrel while U.S. West Texas Intermediate (WTI) crude futures rose 1.6 percent to $71.65 a barrel over tight supply as demand improves.

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This is contained in the 2022-2024 medium-term expenditure framework/ fiscal strategy paper (MTEF/FSP), approved by the federal executive council (FEC) on Wednesday.

At the end of the meeting, Zainab Ahmed, minister of finance, budget and national planning, told journalists that the federal government’s projected budget deficit for 2022 is N5.62 trillion, up from N5.60 trillion in 2021.

She said the deficit would be financed by fresh local and international loans as well as other sources.
“This amount represents 3.05% of the estimated GDP, which is slightly above the 3% threshold that is specified in the Fiscal Responsibility Act,” she said.

“The FRA empowers Mr President to exceed the threshold in his opinion, the nation faces national security threats. And it is our opinion on fact agreed that we can exceed.

“The deficit is going to be financed by new foreign borrowing and domestic borrowing, both domestic and foreign in the sum of N4.89 trillion on privatisation proceeds of N90.73 billion and drawdowns from existing project tied loans of N635 billion.”

She noted that the projected debt to revenue ratio in the report is 43 percent. “We know Nigerians all have concerns about the actual debt to revenue ratio in 2019 was 58%. So, this is an improvement over the preceding 2019. In 2020, the ratio was up to 85%. So 2022 is a significant improvement,” Ahmed said.

In terms of expenditure, Ahmed said the FEC approved an aggregate of N13.98 trillion, which is 3% higher than the 2021 budget.

“We have also presented to the federal government the projected revenues for 2022 to 2024. Specifically for 2022, the revenue that we expect is N6.54 trillion and 2.62 trillion to accrue to the federation account on VAT, respectively,” she added.

In 2020, the federal government also exceeded 3 percent fiscal borrowing threshold because of the COVID-19 pandemic.

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The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, announced this when he addressed State House correspondents at the end of the Council’s meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

Udoma said that the council also approved the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

“Today, the Federal Executive Council approved the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). It was approved and it would be submitted to the National Assembly for further consideration.

“The MTEF/FSP that was approved today is designed to translate the strategic development objectives of the Economic Recovery and Growth Plan (ERGP) into a realistic and implementable budget framework for the medium term. Inputs from stakeholders were part of the documents that was submitted,” he said.

The minister said that the MTEF projected a proposed budget of N8.73 trillion for 2019 fiscal year, saying the figure was about N400 billion less than N9.12 trillion for 2018 budget.

He said the key assumptions highlights being proposed for 2019 budget included oil price benchmark of 60 dollars per barrel, oil production of 2.3 million barrels per day, exchange rate of N305/$1, and GDP growth rate of 3.01 per cent.

The Minister of Finance, Hajiya Zainab Ahmed, also disclosed that FEC approved that Nigeria should receive $1.5 million loan from African Development Bank for Lagos-Abidjan expressway.

She explained that the dual carriage way project with six lanes was approved at the 42nd Ordinary Session of the Heads of State meeting of the ECOWAS countries.

She said the highway would pass through five countries including Nigeria, Cote d’ Ivoire, Benin, Ghana and Togo.

“The African Development Bank in 2016 approved a total sum of $13.5 million for the whole of the project to finance both the study in the form of a loan as well as a grant. So, this $13.5 million has been distributed among the participating countries and the component for Nigeria is $1.5 million.

“The Federal Executive Council has approved that we accept this facility so that the project study can be commissioned towards the planning of the execution of the highway project itself,” he added.

The Minister of Power, Works and Housing, Babatunde Fashola, who also addressed the correspondents on the outcome of the meeting, said N63 billion was approved by the council for the reconstruction and rehabilitation of the Lagos-Badagry-Seme border road.

He said: “The ministry of Works presented a memorandum for the award of the Lagos-Badagry-Seme border road for rehabilitation and reconstruction of sections of it.

“It is a total of 46 kilometres and that excludes the part under contract by the Lagos State Governmement, from Ericmore to Okokomaiko.

“Council approved 46 kilometres form Agbara to Seme border and out of that, 24 kilometres will be six lanes and the remaining 22 kilometres will maintain the existing four lanes without expansion but with reconstruction and rehabilitation. The contract sum is N63.023 billion.”

According to the minister, the road is part of the Lagos-Abidjan highway corridor being constructed jointly by Nigeria and some neighbouring West African countries, adding that the Nigerian section is Ericmore to Badagry.

“The Nigerian section is this road that was approved by the Federal executive Council. So we are now constructing our part; Ghana, Cote D’Ivoire have done theirs while Togo and Benin Republic also have something in place now,” he said.

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Such countries look for a system that supports the reform of policy makers’ plan on expenditures and resources applicable to the most important activities, providing sound revenue estimation.

In search of such systems, the Federal Government adopted Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to help in the budget process.

MTEF is a transparent planning and budget formulation process within which the cabinet and central agencies establish credible contracts for allocating public resources to strategic priorities while ensuring overall fiscal discipline.

The World Bank says the process entails setting fiscal targets and allocating resources to strategic priorities within these targets.

Further to this, the Fiscal Responsibility Act 2007 makes statutory provisions requiring the Federal Government to prepare the MTEF/FSP; a three-year planning tool that defines government’s economic, social and development objectives and priorities, among others.

Economists say the act articulates the nature of fiscal significance of government’s debts and measures to reduce such liabilities.

They note that budget process in Nigeria before the adoption of MTEF was facing numerous challenges that led to different reforms from one government to another.

According to them, the challenge include lack of political will and commitment to abide by stipulated rules and budget guidelines and inability to develop a proper macro-economic framework for budget formulation.

They observe that MTEF is a government strategic policy expenditure framework which balances what is affordable (in the aggregate) against policy priorities of the government.

Observers note that over the years, the MTEF as a government framework would be presented to the National Assembly before presentation of the budget to the lawmakers.

However, the 2018-2020 MTEF/FSP was presented by President Muhammadu Buhari weeks after presentation of the 2018 Appropriation Bill.

Chairman Senate Committee on Finance John Enoh said the delay was caused by “some discrepancies’’.

According to Enoh, there are some matters that are contained in the report of the Senate Joint Committee on Finance, Appropriation and National Planning at the moment that need to consult further with the Joint Committee in the House of Representatives.

Nevertheless, the two chambers of the National Assembly on Dec. 5, passed the 2018-2020 MTEF/FSP.

Both chambers adopted 47 dollars per barrel as oil benchmark for 2018 budget and retained the 2.3 million barrels per day oil production and market rate of N305 to a dollar as proposed by the executive.

Similarly, the chambers recommended adoption of projected N5.28 trillion for non-oil revenue and adoption of N1.70 trillion for new borrowing.

The Senate recommended that relevant committees of the National Assembly should constantly and closely oversee ministries, departments and agencies on the implementation of programmes to ensure effective targeting of beneficiaries.

The joint committee recommends the adoption of 3.5 per cent growth rate.

It also recommends that the National Assembly should insert in the 2018 Appropriation Act, a clause which makes it mandatory for the executive to refer to the National Assembly for any expenditure in excess of the benchmark.

President of the Senate, Dr Bukola Saraki, said “we hope that those relevant revenue-generating agencies will ensure that they meet the target they have set for 2018.

“The NNPC should also ensure that the bench mark production we have set should be met.”

Similarly, the House of Representatives urged the National Assembly to amend relevant sections of the Fiscal Responsibility Act and other extant laws to strengthen budgeting and enthrone accountability.

Rep. Betty Apiafi (Rivers-PDP) wondered why the proposed utilisation of the recovered looted funds was not captured in the list of recommendations.

But House Leader Femi Gbajabiamila said it was unnecessary to bring up the issue and appealed to Apiafi and other members to support the endorsement of the framework.

Gbajabiamila’s position notwithstanding, Speaker of the House Yakubu Dogara advised Apiafi to do a motion that would capture her thoughts on MTEF and use of the recovered funds in funding the 2018 budget.

Whatever arguments among the lawmakers, the Federal Government said all the parameters used in drafting the country’s 2018 Appropriation Bill were realisable.

Minister of State, Ministry of Budget and National Planning, Hajiya Zainab Ahmed, said government was expected to generate N6.6trillion revenue in 2018 as projected in the budget, representing a 30-per cent increase over 2017 projection.

According to her, this is based on key strategy adopted by the relevant ministries to block revenue leakages and effective revenue collection and management.

She stated that the proposed 45 dollars oil benchmark in the budget was carefully adopted by the executive to provide the amount needed to fund the budget deficit of N2.01trillion, representing 1.77 per cent increase.

According to her, other parameters include oil production estimate of 2.3 million barrels per day, real GDP growth of 3.5 per cent, inflation rate of 12.4 per cent and exchange rate of N305 to a dollar.

Concerned citizens, therefore, call on National Assembly to continue to scrutinise budgets of ministries departments and agencies to produce a cleaner budget.

* A News Analysis by Naomi Sharang, News Agency of Nigeria (NAN)

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The approval of this ducument is a key constitutional condition for the consideration of the budget proposal.

To that effect, the Senate had directed its joint committee on Appropriation and Finance to speedily work on the draft MTEF so as to allow it commence debate on the budget proposal.

The report of the committee was supposed to be considered and approved Thursday, but it informed the Senate that there were serious differences between it and the House of Representatives’ committee and sought additional time to sort the issues out.

Although Senate President Bukola Saraki had assured on Tuesday that the fiscal document would be considered this week to allow for debates on general principles of the 2018 budget next week Tuesday, Chairman Senate Committee on Finance, John Enoh (PDP, Cross River State), told lawmakers at Thursday plenary that it is yet to harmonise its report with that of the House of Representatives.

“We need to consult further with the joint committee in the House of Representatives,” Enoh said.

Senate President Bukola Saraki, adjourned consideration of the report on the MTEF/FSP to Wednesday next week.

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The Minister of Budget and National Planning, Senator Udo Udoma, disclosed this in Abuja during a public dialogue with top government officials, members of civil society organisations and the Organised Private Sector, among others, on the 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper.

He said the decision to submit the 2018 budget proposal early was in line with provisions of the Fiscal Responsibility Act, 2000.

Udoma noted that the early submission of the budget proposal to the lawmakers would give them enough time to consider the fiscal document and pass it on time.

The minister said the overall goal of the government was to ensure that the country returned to a predictable budget year, which would run from January to December.

“We are having extensive consultations and all the inputs from the various consultations will be taken into consideration in preparing the MTEF and Fiscal Strategy Paper.

“The MTEF outlines the Federal Government’s fiscal policies and our macroeconomic projections for the next three years from 2018 to 2020, and it provides the broad framework for the 2018 budget.

“And as you know, we are committed to delivering the 2018 budget to the National Assembly by the beginning of October, and this is part of that process.”

Explaining the parameters for the 2018 budget, he said that the Federal Government was targeting to spend the sum of N7.9tn as against N7.44tn this year, adding that the fiscal deficit was expected to rise to N2.77tn from N2.35tn in the 2017 fiscal year and that there was no need for Nigerians to panic about the country’s debt burden.

Udoma added that the nation’s debt profile was sustainable as it was still within the threshold approved by the Fiscal Responsibility Act of 2007.

According to the minister, there is no country in the world that does not borrow, nothing that the Federal Government was well capable of meeting its obligations to creditors.

“We are maintaining our deficit and debts within sustainable limits. Debt financing will be restructured gradually in favour of foreign financing as part of the strategy to lower debt service burden and free up more fiscal space for the private sector,” he added.

The minister said the government was targeting total oil production volume of 2.3 million barrels per day, with an oil price benchmark of $45 per barrel.

He added that the plan of the government in 2018 was to reduce inflation rate to 12.42 per cent with a Gross Domestic Product growth rate of 4.8 per cent and nominal GDP of N133.97tn.

In terms of revenue projections, Udoma stated that the government was targeting the sum of N5.16tn for 2018 as against N5.08tn in 2017.

Of this amount, N2.1tn is to be generated from oil revenue; non-oil revenue is expected to contribute N1.36tn; dividend from Nigeria Liquefied Natural Gas, N29.58bn; and revenue from minerals and mining, N1.06bn.

Others are independent revenue from agencies of government, N847.9bn; domestic recoveries and fines, N364bn; other Federal Government recoveries, N138.43bn; and grants and donor funding, N281.6bn.

In terms of expenditure, the minister explained that the government was planning to spend the sum of N2.63tn on non-debt recurrent expenditure, while N350bn would be set aside for special intervention programmes.

For capital expenditure, Udoma said the sum of N2.4tn would be spent on capital projects’ implementation as against the N2.17tn approved for 2017.

“We are addressing the recurrent and capital spending imbalance. Government will continue to allocate at least 30 per cent of its budgeted expenditure to capital projects,” he added.

The minister described the targets of the government in 2018 as ambitious, but noted that they were achievable.

He said, “In line with the goals of the Economic Recovery and Growth Plan 2017-2020, the medium term fiscal policies of government will be directed at achieving macroeconomic stability, accelerating growth, intensifying economic diversification and promoting inclusiveness.

“The need to look onwards to boost non-oil revenues cannot be overemphasized as we diversify. We are on track to achieve full recovery and return firmly to the path of growth. Fiscal prudence must be observed at all levels of governance.”

The event was attended by the Minister of State for Budget and National Planning, Zainab Ahmed; Director-General, Budget Office of the Federation, Ben Akabueze; and Director-General, Debt Management Office, Patience Oniha, among others.

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Adopting the recommendations of its Joint Committee on Finance, Appropriation and National Planning on the document, the Senate however, raised the proposed oil benchmark of $42.50 in 2017 budget to $44.5 per barrel.

The decision to retain a conservative exchange rate benchmark of N305 per dollar could further mount pressure on the naira, especially as the CBN has failed to meet forex demand in recent times. Industry experts had condemned the wide gap between official exchange rate and that of the parallel market, saying it was the reason for the weak naira.

Presenting the report, the joint committee chairman, John Enoh, stated that “a judicious monetary fiscal policy mix and deliberate government policies to expand the productive base of the economy would be expedient to improve the exchange value of the naira relative to the dollar.”

According to him, “it has become obvious that the fixed exchange rate regime as implemented in Nigeria is no longer useful. The sustained and widening gap between the official exchange rate and the parallel market has created several loopholes in the system. However, the recent transition from fixed exchange rate regime to flexible exchange regime appears commendable.”

He commended the recent migration from fixed exchange rate regime to flexible exchange rate regime but tasked the Central Bank of Nigeria (CBN) to put in place measures meant to close the gap between parallel market and the official exchange rate.

Defending its decision to raise the oil benchmark, the committee said international oil industry watchers had forecast that oil prices were gradually heading towards $60 per barrel.

The Senate also approved the recommendation to retain 2.2 million barrel per day oil production volume, observing that the projection is achievable if the Federal Government makes concerted efforts to stem the tide of militancy in the Niger Delta.

The Senate approved the government’s borrowing plan of N2.321 trillion, made up of N1.253 trillion as domestic borrowing and N1.067 trillion external borrowing. It charged the government to be focused and ensure that the loans are used to finance critical projects capable of increasing productivity which will in turn yield revenue to service the debt.

The lawmakers approved government’s independent revenue projection of N807.57 billion as contained in the revised MTEF and FSP just as it approved the projected N5.122 trillion non-oil revenue in 2017. They tasked the revenue collection agencies to “intensify their collections drive to boost the non-oil components of the revenue.”

But Ben Murray-Bruce (Bayelsa East) faulted the approval of N305 exchange rate, stating that “You have pegged the exchange rate at N305 to the dollar. Nobody in this room today can go to the bank and buy the dollar at N305 and so, we have an exchange rate that is ridiculous.

“The black market is about N500 and it is only about N200 differential. Between 1960 and 1980, despite the civil war, when (Chief Obafemi Awolowo was federal commissioner for finance), the country was moving on without borrowing a penny.

“In the exchange rate between the official and black markets, there was no differential. In 1980, it was $1: 97cents to the naira and the difference between official and black market was N10 kobo.

“When (Shehu) Shagari was overthrown on December 31st in 1983, the official rate of exchange was N3 to the dollar and the black market was N4 to the dollar. So, it was a N1 differential. Three years ago, it was a N10 to N15 differential between the black market and the official rate.

“Today, it is N200 and so, it is better for businessmen to round trip than to manufacture. The exchange rate we have is encouraging round tripping. When the exchange rate encourages round tripping, we will never close the gap because the richest people in Nigeria today are treasurers of banks. The exchange rate is wrong. N305 is unrealistic.”

The House of Representatives also adopted $44. 5 per barrel as benchmark price for the 2017 budget. The resolution followed the adoption of the report of Ibrahim Babangida- led joint House committees on Finance, Appropriation, National Planning and Economic Development, Legislative Budget and Research and Aids, Loans and Debt Management on the 2017-2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) at the plenary presided over by the Deputy Speaker, Sulaimon Yussuf Lasun.

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A look at the Notice Paper of the Senate also revealed that Senators will screen the nominee of President Buhari for the post of Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu this week. Magu is presently the acting chairman of the anti-graft agency.

Moreover, the Senate will also receive and consider the report of its Committee on the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2017 -2019

Other legislative activities to engage the lawmakers include the consideration of the Committee Report on the North East Development Bill, 2016 Federal Inland Revenue Service (FIRS) budget, 2016 Nigeria Customs Service Budget and the 2016 Budget Report on Postal Service of Nigeria.

Also, on Wednesday, the Senate will inaugurate the Legislative Compliance Committee and hold Public Hearing on Consumer Protection Act (repeal) and to establish the Competition and Consumer Protection Commission Bill 2016 on Thursday.

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Akande, who is the Senior Special Assistant (SSA) on Media and Publicity in the Office of Vice President Yemi Osinbajo, said this in an interview with newsmen in Abuja, at the weekend..

He said the scheme “is a combination of several well-thought out programmes emphasising direct connections with the extremely poor, and the needy among other categories of the masses of this country.”

A breakdown of the welfare programme is contained in the 2016-2017 and 2018 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (PSP) submitted to the Senate for consideration and approval.

According to the document, the Federal Government will collaborate with state governments to institute well-structured social welfare intervention programmes such as: School feeding programme initiative, conditional cash transfer to the most vulnerable and post-National Youth Service Corps grant.

Under special intervention, including cash transfer, home grown school feeding programme and micro credit loans (SMEs, market women etc), which is also covered by the social intervention programme, the government provided N300 billion for 2016, N339.05 for 2017, and N338.93 for 2018.

According to Akande, the plan of the Buhari presidency is comprehensive and has taken into consideration some of the factors that led to the failure of past poverty alleviation schemes.

“One of the major differences here is that the social intervention programme such as the Conditional Cash Transfer (CCT) would be a direct transfer of N5,000 monthly to the extremely poor among us.

“And this is a safety net that several advanced nations had put in place a long time in their history, and most often at times of economic challenges.”

The SSA said the money would be paid directly to the people concerned on the condition of school enrolment and immunization.

“This way, we are expanding school enrolment and also assuring physical well-being.The home-grown school feeding programme will commence in public primary schools in 2016, providing adequate nutrition to school children, promoting local farming, boosting agriculture, and creating jobs and wealth locally.

“We have experts working in the presidency, collaborating with experts from global bodies who together bring to bear international best practices working on how best to implement these programmes.

“I can tell you that no sooner than President Buhari resumed work, many of these experts have been meeting and planning on how best to implement these plans. We are not talking here of something hurriedly put together or a programme where some consultants would take the huge chunk of the resources.”

Akande also said that as part of the half a trillion Naira to be spent, a provision of no fewer than one million jobs in 2016, including 500,000 graduate-youths to be engaged as teachers.

“There is another 500,000 non-graduate unemployed people who will be trained as artisans, making a total creation of about one million direct jobs,” adding that the presidency was determined not to repeat the past failed efforts at alleviating poverty.

“As the President disclosed during the budget speech, he has asked the vice president to coordinate the programmes and I can tell you that serious work is already apace,” Akande added.

He reiterated that for the first time in Nigeria’s budget history, the Federal Government would be directly intervening in lifting people out of poverty through a series of measures already proposed totalling N500 billion, representing nearly nine per cent of the budget.

“Through these measures and for the first time, the budget is paying attention to the problem of poverty in a proper and direct way,” he said.

The spokesman added that another one million extremely poor and disabled Nigerians would also benefit from the first phase of the CCT Scheme proposed in the 2016 appropriation bill to enable them to live decently.

“There will also be the provision of affordable, very low cost loans to market women and artisans to enable them enlarge and expand their trades,” he added.

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