Connect with us

Business

More borrowing needed despite improved revenue agencies – Minister

Published

on

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said the Nigerian government needs more borrowings to fund its budget even though some Ministries, Departments and Agencies have surpassed their revenue target.

Edun said this during an interactive session of the Senate Joint Committees on Finance and National Planning and Economic Affairs on the 2025-2027 Medium-Term Expenditure Framework/Fiscal Strategy Paper.

According to him, the borrowing needs to be done productively and efficiently based on the Senate’s approval for proper funding of the budget.

“The revenue effort has been good, but we still need to do better, and in the meantime, we still need to borrow productively, effectively and sustainably all in the name to invest in a Nigerian economy.

“Not just infrastructure but also social services, health services, education and intervention in terms of social safety net to help the poorest and most vulnerable,” Edun said.

Giving a similar reason, the Minister of Budget and Economic Planning, Senator Atiku Bagudu reminded the lawmakers that the borrowing plans contained in the N35.5 trillion 2024 budget, were primarily meant to fund the N9.7 trillion deficit.

“Despite revenue targets surpassing by some of the revenue generating agencies , government still needs to borrow for proper funding of the budget , particularly in the area of deficit and productivity for the poorest and most vulnerable .

“We a long term development perspective plan agenda 2050 aiming at GDP per capital of $33,000,” Bagudu explained.

Meanwhile, the Economic and Financial Crimes Commission (EFCC) and the Revenue Mobilization and Fiscal Commission maintain that if the Federal Government is serious, there would be no need to borrow to fund the nation’s budget.

ALSO READ:  NDDC Will Be Green Energy Compliant -Ogbuku

The Chairman of EFCC, Ola Olukoyede, who told the committee that it has recovered over N197 billion since January 2024, noted that if the government works hard and derives the requisite collection from the IOC’s, the country would have enough to fund the budget.

The Comptroller General of Nigeria Customs Service, Bashir Adeniyi, in his presentation, disclosed that the Customs has raked in N5.352 trillion in revenue above the N5.09 trillion target for the 2024 fiscal year.

He added that N6.3 trillion is targeted as projected revenue for 2025, a 10% increase of which would be the revenue target for 2026 and an additional 10% increase for the 2027 fiscal year.

The Group Chief Executive Officer, of Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, in his own presentation, said the company exceeded the N12.3 trillion revenue projected for 2024 by already raking in N13.1 trillion.

“For the 2025 fiscal year, N23.7 trillion is projected by NNPCL to be remitted into the federation account “, he said.

The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, in his presentation, also informed the joint committees that FIRS had surpassed targeted revenues across the various tax components.

On Thursday, the Senate granted approval to the ₦1.77 trillion ($2.2b) loan request of President Bola Tinubu after a voice vote.

The Senate presided over by Deputy Senate President, Barau Jibrin, approved the loan after the Senate Committee on Local and Foreign Debts chaired by Senator Wammako Magatarkada (APC, Sokoto North) presented the report of the committee.

ALSO READ:  Energy, solid minerals top priority, Tinubu tells German businessmen

The request which was submitted by the President on Tuesday is part of a fresh external borrowing plan to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.

The fresh loan request by Tinubu had triggered criticisms from some Nigerians, especially the opposition. Former Vice President, Atiku Abubakar, described the loan request as “bone-crushing” to Nigerians.

Channels

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Investors gain N377bn on NGX amid bullish trend

Published

on

The Nigerian stock market on Thursday rebounded with a gain of N377 billion on the Nigerian Exchange Ltd.

Market capitalisation rose by N377 billion or 0.58 per cent to close at N65.847 trillion, compared with N65.470 trillion posted on Wednesday.

Similarly, the All-Share Index (ASI) climbed by 601.25 points or 0.58 per cent, to settle at 104,788.25 from N104,187.00 earlier recorded.

The uptrend was driven by strong buying interest in medium and large capitalised stocks such as Caverton Offshore Support Group, VFD Group, Neimeth, among others

Meanwhile, the market breadth closed positive with 47 gainers and 11 losers

On the gainers’ chart, FG152028S1 grew by 100 per cent to close at N100.00 while Caverton Offshore Support Group increased by 10 per cent to close at N2.31 per share.

VFD Group soared by 9.92 per cent to close at N79.80 and Neimeth International Pharmaceutical gained by 9.92 per cent to close at N2.88 per share.

Veritas Kapital Assurance grew by 9.57 per cent to close at N1.03 per share.

On the losers’ chart, ABC Transport dropped by 10 per cent to close at N1.26 while Eterna fell by 9.90 per cent to close at N32.30 per share.

CAP Plc declined by 7.45 per cent to close at N43.50 and Regalins lost by 3.64 per cent to close at 53k per share.

Also, the Nigerian Exchange Group dropped by 3.23 per cent, to close at N34.50 per share.

A total of 432.56 million shares worth N9.719 billion were exchanged across 12,027 transactions.

This is compared to 376.61 million shares valued at N11.89 billion that was exchanged across 11,576 transactions earlier.

ALSO READ:  Zone 3 Neighborhood Shopping Center Long Overdue For Redesign — Group

Transactions in the shares of Access Corporation topped the activity chart with 77.861 million shares worth N1.62 billion.

Ellah Lakes followed with 44.24 million shares valued at N132.76 million while Fidelity Bank transacted 32.46 million shares worth N614.78 million.

Zenith Bank traded 30.20 million shares valued at N1.466 billion and United Bank for Africa sold 20.45 million shares worth N718 million. (NAN)

Continue Reading

Business

Renaissance Energy assumes Shell’s liabilities, says NOSDRA

Published

on

The National Oil Spill Detection and Response Agency (NOSDRA) confirmed Shell’s liabilities will transfer to Renaissance Africa Energy after its acquisition of SPDC.

NOSDRA Director-General, Mr Chukwuemeka Woke, stated this on Wednesday in Abuja during a visit by Renaissance Africa Energy’s Managing Director, Tony Attah.

Renaissance, a consortium of independent oil firms, has completed the acquisition of Shell Petroleum Development Company in Nigeria.

The acquisition gives Renaissance control of Shell’s onshore assets across the Niger Delta region.

Woke said Renaissance must address environmental issues resulting from Shell’s past operations and honour all liabilities incurred.

He assured the agency’s continued collaboration with Renaissance, particularly on projects like the Bodo cleanup and related efforts.

“As regulators, NOSDRA ensures oil operations align with international environmental standards and national laws,” Woke emphasised.

He added, “This acquisition does not exclude Shell’s responsibilities — they are now Renaissance’s to bear.”

He urged Renaissance to prioritise environmental sustainability and energy security while complying with all regulations.

He also noted the significance of abiding by the Polluter Pay Principle and addressing oil spills caused by third-party activities.

Earlier, the Renaissance MD clarified the company is not replacing Shell, but has a distinct mission.

“Our aim is to lead Africa in clean energy generation and security,” Attah stated.

He promised a viable partnership with NOSDRA and strong commitment to environmental preservation.

Attah identified energy poverty, environmental conservation and regulatory adherence as key industry challenges.

He outlined Renaissance’s focus on clean, affordable energy, especially natural gas, to fuel Nigeria’s industrial growth.

The company seeks NOSDRA’s partnership in achieving its goals while ensuring regulatory compliance. (NAN)

ALSO READ:  NDDC Will Be Green Energy Compliant -Ogbuku
Continue Reading

Business

CBN: Petroleum Imports Declined 23.2%, Non-Oil Imports Fell 12.6% In 2024

Published

on

The Central Bank of Nigeria (CBN) has announced a balance of payments (BOP) surplus of $6.83 billion for the 2024 financial year.

The BOP is a record of all financial transactions made between a country and the rest of the world over a specific period—usually a year or a quarter.

CBN, in a statement signed on Wednesday by Hakama Sidi-Ali, its acting director of corporate communication, said the balance of payments in 2024 represents a surplus compared to the deficit of $3.34 billion recorded in 2023 and $3.32 billion in 2022.

The apex bank said the improvement reflects the impact of wide-ranging macroeconomic reforms, stronger trade performance, and renewed investor confidence in Nigeria’s economy.

According to the CBN, the current and capital accounts recorded a surplus of $17.22 billion in 2024, driven largely by a goods trade surplus of $13.17 billion.

“Petroleum imports declined by 23.2% to $14.06 billion, while non-oil imports fell by 12.6% to $25.74 billion,” CBN said.

The decline in petroleum products imports occurred the same year Dangote Petroleum Refinery commenced petrol production, providing oil marketers an alternative to importation.

Dangote refinery began to sell petrol to the Nigerian market on September 20.

On the export side, CBN said gas exports rose by 48.3 percent to $8.66 billion, while non-oil exports increased by 24.6 percent to $7.46 billion.

“Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93 billion. International Money Transfer Operator (IMTO) inflows surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora,” CBN said.

ALSO READ:  Stock market opens bearish, investors lose N123bn

“Official development assistance also rose by 6.2% to $3.37 billion.”

More so, the apex bank said Nigeria recorded a net acquisition of financial assets totalling $12.12 billion.

“Portfolio investment inflows more than doubled, increasing by 106.5% to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability,” the apex bank said.

“Although foreign direct investment fell by 42.3% to $1.08 billion, the overall financial account posted notable gains.”

CBN also reported that the country’s external reserves increased by $6.0 billion to $40.19 billion by year-end 2024, further strengthening its external buffer.

According to the financial regulator, net errors and omissions narrowed significantly by 79.5 percent to negative $5.10 billion in 2024 – down from $24.90 billion in 2023,

The development, the apex bank said, reflects progress in data capture, transparency, and reporting integrity.

Commenting on the report, Olayemi Cardoso, governor of CBN, said the positive turnaround in “our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability”.

Carsoso also said the surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.

Continue Reading