Business

BUDGET 2016: Buhari sacks Director of Budget

Published

9 years ago

February 16, 2016

The embarrassing errors in the 2016 Budget appeared to have claimed a first casualty on Monday as President Muhammadu Buhari sacked the Director-General (Budget), Mr. Yahaya Gusau.

The President also approved the appointment of Mr. Tijjani Abdullahi to replace Gusau, who was appointed in August last year.

These were contained in a statement by the President’s Special Adviser on Media and Publicity, Mr. Femi Adesina, on Monday.

Although no reason was given for the development, observers believed that Gasau was fired because of the various discrepancies that had been identified in the 2016 budget proposals currently before the National Assembly.

A top government source, who confided in The PUNCH,said although Gusasu could not be blamed for the errors and padding of the budget, the buck stopped at his table as the director-general.

The source stated, “His removal has to do with errors and discrepancies in the budget. I can assure you that more heads will roll.”

The Presidency sources had, on February 6, alleged that a budget mafia planned to scuttle innovations introduced by the current administration into the budget by inflating figures.

The mafia was alleged to have proposed a budget of N9.7tn for capital and overhead spending, excluding personnel cost, as against the Presidency’s initial estimate of about N8tn.

The group was said to have proposed N3tn as overheads alone out of the N9.7tn, a figure the Presidency later slashed to N163bn.

The ministry of budget and national planning had also promised to investigate and punish those responsible for the errors and strange figures found in the budget, which was presented to the National Assembly by Buhari in December, 2015.

The errors had delayed the passage of the budget with the federal legislature saying the February 25 deadline it set for its approval was no more feasible.

The Senate Leader, Ali Ndume, had said, “We have not postponed it indefinitely; we are saying that with the current developments, the February 25 deadline we gave ourselves may not be realistic.”

According to Adesina, Abdullahi, who succeeded Gusau, is a fellow of the Certified National Accountants of Nigeria and a banker of repute with experience in managing public finance.

In a similar development, Adesina said the President had approved the appointment of Mr. Ben Akabueze as the Special Adviser on Planning to the Minister of Budget and National Planning.

Akabueze, the immediate past Commissioner for Economic Planning and Budget in Lagos State, is said to have worked in senior management positions in Citi Bank, Fidelity Bank, United Bank for Africa, NAL Merchant Bank, Sterling Bank and BIA Consulting Limited, among others.

He is a Fellow of the Chartered Institute of Bankers and also a Fellow, Institute of Credit Administrators.

Meanwhile, the Centre for Social Justice on Monday said the 2016 budget contained N668.8bn expenditure that was “frivolous, inappropriate, unclear and wasteful”.

The centre stated this in Abuja while unveiling a report that analysed the 2016 budget.

Speaking on the report, the Lead Director, CSJ, Mr. Eze Onyekpere, said the fiscal document should be reviewed in order to remove all the expenditure that would not impact positively on the lives of the people.

He said it had become a tradition among Ministries, Departments and Agencies of government to make allowance for unnecessary expenditure in the budget.

Some of them are purchase of vehicles, welfare packages, software, computers, uniforms and clothing, refreshment and meals and subscription to professional bodies.

Others, the CSJ listed, are maintenance of office building/residential quarters, budget preparation, rents and absence of price database.

Giving a breakdown of some of the expenses that made up the unclear expenditure, Onyekpere said for the State House, for instance, the sum of N3.91bn was allocated to annual reporting maintenance of Villa facilities while N618.6m was budgeted for installation of electrical fittings.

Other expenses that the group considered as wasteful are N272m for upgrade of mechanical power line, N322.4m for linking of cable to drivers’ restroom at the Villa and N213.8m for linking of cable from the Guest House to generator house.

He added, “Despite the provision for the maintenance of Villa facilities, this huge sum is being considered for the same location.

“The Villa Guest House and facilities have already taken so much. These seem to be a play on words around electricity for the sum of N1.83bn.

“These cannot be priorities for Nigeria in these lean times. This is incredible and should be reduced by 70 per cent.”

On the huge amount budgeted for vehicles, the group urged the National Assembly to demand an inventory of all existing vehicles in the MDAs before considering such requests.

The report said, “Purchase of (motor) vehicles is a common request across many MDAs. How do we determine genuine from frivolous requests?

“Should NASS demand an inventory of existing vehicles? There is a need for justification before every approval. The demand for vehicles is even specifically tied to some foreign brands.

“This is wrong under the Public Procurement Act as only the functional specification of a product should be in the budget.”

The group believed that rather than spending these funds for the procurement of these items, they should be re-channelled to other productive sectors of the economy.

The report added, “A total of N668.88bn has been identified as resources to be saved and re-programmed. We hope the National Assembly will do the needful and reprogramme these resources for the public good.”

A source in the Presidency who claimed that the mafia was responsible for the controversial provisions in the eventual N6.07tn budget sent to the National Assembly by the Presidency, added, “These bureaucrats also proposed to spend N2.1tn on personnel for the 2016 estimate compared to about N1.8tn in the 2015 budget.’’

Following the revelation, the Federal Government, it was learnt, would soon commence an investigation to determine the roles played by permanent secretaries, directors and budget officers in MDAs in the padding of the budget.

The PUNCH gathered from top government officials that the probe, which is expected to commence any time from now, would also be extended to assistant directors, deputy directors and other top-level officers in agencies of government.

It was learnt that the investigation, to be carried out by the Ministry of Budget and National Planning. would assist in unravelling the mystery surrounding the padding of the budget.

Business

UBA GMD Calls for Public-Private Collaboration, Joins Aviation Minister to Commission New MMIA Departure Section

Published

12 hours ago

December 22, 2024

Sahara Weekly

UBA GMD Calls for Public-Private Collaboration, Joins Aviation Minister to Commission New MMIA Departure Section

The newly renovated departure section of the Murtala Muhammed International Airport, Lagos, refurbished by United Bank for Africa (UBA) Plc, was officially commissioned on Friday, December 20th, 2024.

The laudable project, which marks a transformative moment in Nigeria’s aviation sector, underscores UBA’s unwavering commitment to national development and highlights the immense value of strategic public-private partnerships (PPPs).

The ceremony was graced by distinguished stakeholders, including the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo, SAN; the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku; other Directors, and Heads of Agencies operating at the Airport.

Speaking at the event, UBA’s Group Managing Director/CEO, Oliver Alawuba,lauded the collaboration that brought the project to fruition as he emphasised the need for public and private institutions to come together to build and revamp the nation’s assets.

“This renovation is a testament of UBA’s belief in the transformative power of investing in national assets. By modernising our airports, we not only enhance infrastructure but also position Nigeria as a global hub for tourism, trade, and investment,” he stated.

Alawuba took time to highlight the broader economic impact of such initiatives, urging increased private-sector participation in national development. “Public-private partnerships like this demonstrate what can be achieved when we unite for a shared vision of progress and investing in infrastructure catalyses economic growth, improves travel experiences, and creates opportunities across various sectors of the economy,” he added.

Alawuba reflected on the power of unity and collaboration, quoting Helen Keller: “Alone we can do so little; together we can do so much.” The commissioning of the renovated departure section serves as a reminder of what strategic partnerships can achieve in driving national development and elevating Nigeria’s global standing.”

While commissioning the project, Keyamo commended UBA for executing the project, a feat he termed a landmark achievement in Nigeria’s aviation sector. “This renovated departure section exemplifies the bank’s commitment to elevating aviation infrastructure, improving passenger experiences, and fostering international partnerships. It is a proud moment for the ministry and all stakeholders involved, and I thank the management of UBA for pioneering this initiative,” he remarked.

The minister highlighted other key achievements of his ministry, including compliance with the Cape Town Convention, the launch of a consumer protection portal, and advancements in major infrastructure projects such as the second runway at Abuja Airport and solar energy integration in airport operations.

The Managing Director/Chief Executive of FAAN, Mrs. Olubunmi Kuku, commended UBA and other stakeholders for their contributions, adding, “This project reflects FAAN’s dedication to delivering world-class aviation infrastructure. The enhanced departure section not only elevates passenger experiences but also strengthens Nigeria’s competitive position in global aviation,” she said.

She called for more private-sector participation, emphasising that “partnerships like these are essential to transforming the aviation sector into a beacon of excellence.”

The newly renovated departure section boasts cutting-edge facilities designed to enhance efficiency and passenger comfort. This upgrade reaffirms the Murtala Muhammed International Airport’s status as a critical gateway to Nigeria and a major hub for international travel in Africa.

United Bank for Africa is Africa’s Global Bank. Operating across twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology. UBA is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally.

Business

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

Published

2 days ago

December 21, 2024

Sahara Weekly

Dangote Hails Tinubu on Impact of Crude for Naira Swap Deal

…As Dangote Refinery partners MRS to sell PMS at N935 per litre nationwide at its retail outlets

Sahara Weekly Unveils That The Foremost entrepreneur and President of the Dangote Industries Limited, Aliko Dangote has commended President Bola Ahmed Tinubu for the positive impact of the naira for crude swap deal on the Nigerian economy, which has led to reduction in prices of petroleum products in the country.

To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” he added. This price has already commenced in Lagos, and it will be offered nationwide from Monday.

In his statement, he called on other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”

According to him, “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.

Recall that in September, the Federal Executive Council (FEC) under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The move, which commenced on October 1, led to reduced pressure on the dollar and ensured the stability of the local currency.

Dangote thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.

Business

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

Published

2 days ago

December 21, 2024

Sahara Weekly

Port Harcourt Refinery Stays Active: NNPC Denounces Sabotage Rumors

NNPC Debunks Shutdown Rumors, Confirms Port Harcourt Refinery Fully Operational

The Nigerian National Petroleum Company Limited (NNPC Ltd) has dismissed reports circulating in certain media outlets claiming that the Old Port Harcourt Refinery, which was re-streamed two months ago, has been shut down.

In a statement released by Olufemi O. Soneye, the Chief Corporate Communications Officer of NNPC Ltd, the company clarified that the refinery is fully operational. The statement noted that the facility’s operational status was recently verified by former Group Managing Directors of NNPC during a site inspection.

“Preparation for the day’s loading operation is currently ongoing,” the statement confirmed, emphasizing that allegations of the refinery’s shutdown are baseless and intended to create panic or artificial scarcity in the fuel market.

NNPC Ltd urged members of the public to disregard such misleading reports, labeling them as the work of those seeking to exploit Nigerians.

The Old Port Harcourt Refinery has been in operation since its re-streaming, and the company remains committed to ensuring stability in the supply of petroleum products across the country.