Economy
FG Cuts 2020 Budget By N1.5trn

By Mathew Dadiya, Abuja
The Federal Government, Wednesday, announced that it would reduce the 2020 Budget by N1.5 trillion and crude oil bench mark down to $30 against the $57 in the Appropriation Act.
President Muhammadu Buhari had in December 2019, signed the 2020 budget of N10.
8 trillion which was passed by the National Assembly.The downward review of the annual expenditure came on the backdrop of falling crude oil prices in the international market.
The government also urged the ministry of petroleum and the Nigerian National Petroleum Corporation to intensify effort at ensuring increase in crude oil production to 2.1 million barrel per day in view of the current realitiesand shore up the shortfalls.
This, Minister of Finance, Zainab Ahmed said that the Federal Government was embarking on a number of expenditure cuts in Customs revenue to reduce, 50% cut on revenue from privatization proceeds.
The Minister disclosed this while briefing State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari, at the Presidential Villa, Abuja.
She said that the Council approved reductions in capital budget by 20%, 25% cut in enterprises expenditures.
Mrs Ahmed added that FEC also placed an embargo on all recruitments in MDAs except in essential services, security, including Armed Forces and the other security agencies.
Other measures, according to the Minister, include review tax policies, hoping that reduction in recurrent expenditures will allow for the operational surplus increase that could help increase the revenue of government.
Ahmed stated that Presidency would be engaging the National Assembly as soon as possible to give legal backing that will enhance the new policies.
The Minister explained: ”What we have done is that we have written every ministry and given them guidelines on how these adjustments will be made to enable us have detailed imputes from the ministries.
”But I can just say that the bulk cut is about N1.5 trillion reduction in the size of the budget. This includes N457 billion from PMS under-recovery.
”It affects the federally funded upstream projects with about 25 percent cut. We work out the exact amount when we get inputs from the Ministries, Departments and Agencies (MDAs).”
On concerns of the economy slipping back into recession, she acknowledged that the government have concerns, saying: ”This is resulting in about 40 to 45 percent reduction and also it will affect the states because it means the Federation Account Allocation Committee (FAAC) will be significantly reduced.
”FAAC is just a pool of funds and we share what is realized, so it will affect the states as well. So we are expecting the states to take similar measures to amend the plans that we have made and bring them down to current realities.
”It is just a question of deferring some nonessential expenditure so that when things turn we might actually go back to our plans.
On plans to reverse the recently increased Value Added Tax (VAT) and excise duty, Mrs Ahmed said that she would not make any commitment on that right now because ”these are provisions in the law in the Finance Act and as you know we will even in the amendment to the MTEF and the budget have to engage with the National Assembly.”
”The fiscal authorities are working on with the fiscal authority team and we will get Mr. President’s approval before we come up with what we will announce to the public.”
On the directive to stop recruitment into government jobs, the minister said: ”What the agencies have been doing is replacement but even that is being suspended.
”When things improve, we will go back to the issue of recruitment, but for now, our wage bill is already very high.
”The President has directed that salaries and pensions must be paid unfailingly, so we are not looking at downsizing in anyway.
”We are maintain our workforce as it is but we are just stopping the increase in the size of the nominal roll.”
On benchmark, she said that the Federal Government was working on the worse case scenario of $30 per barrel ”and also we are holding to the production numbers of 2.18 million barrels per day.”
”This you will remember is approved by the National Assembly. This our own analysis and we will start engaging the National Assembly, ” she added.
On the implications for deficit, she said, ”what this means is that our deficit will increase. Our current deficit in the 2020 budget is N1.8 trillion.
”With the decline in revenue and even with the adjustment in expenditure the deficit increase. That is why we have to engage the National Assembly to ensure we stay fiscal the fiscal limits as defined in the fiscal responsibility act.”
She further explained that the budget deficit might go up by N1.5 trillion but it depends because the details of the cuts were not yet out.
”We might also decide to amend the threshold but on the fiscal side we have decided to care the worse case scenario and that is $30 per barrel. You know that today (Wednesday) the price has gone up to about $32 per barrel but we are still staying at $30 to be on the safe side, ” the Minister said.
Economy
SEC Advocates Advanced Financial Inclusion by 2030

By Tony Obiechina, Abuja
The Securities and Exchange Commission (SEC) has stressed the need for Nigeria to harness its demographic dividend to advance financial inclusion through investments by 2030 for national survival or face deepening inequality.
The Director-General of the SEC, Dr Emomotimi Agama said this at the United Capital Asset Management Investment forum on Wednesday in Lagos.
Agama, in his keynote address titled: “Advancing Financial Inclusion through Investments: Bridging
Nigeria’s Knowledge and Wealth Gap,” said Nigeria must harness its demographic dividend to boost investment.
“Our theme, Advancing Financial Inclusion through Investments, is not aspirational; it is foundational to national survival.
“We stand at a pivotal moment. By 2030, Nigeria can either harness its demographic dividend or face deepening inequality. The knowledge-wealth gap is not merely an economic challenge; it is a moral imperative,” Agama said.
He said the term inclusion should be reframed as active financial involvement, where access meets empowerment, and capital becomes a tool for transformation.
Agama said that closing the financial inclusion gender gap could lift 700,000 Nigerians from poverty.
He said, “Nigeria has a great population yet we have a tiny drop of this number of persons involved in the capital market.
“That one reason for poverty, because we are running from money. We have to do something. Our market capitalisation is an opportunity to do something,
We all have
“We need to change the narrative and move the market forward. We must reach out to make the difference. We are committed to protecting investors and developing the market. Our goal is to do the right thing no matter whose ox is gored. We will work by the principles of fairness and equity to change the market. We will provide a fair ground for everyone to aspire.
He noted that MTN Nigeria’s share offering drew 150,000 new investors – 75 per cent women, 85 per cent under 40.
Agama recommended a four-pillar strategy for bridging the gaps.
He listed the four-pillar strategy as democratisation of financial knowledge, catalyse MSME Investment Channels, blended Finance Vehicles: Partner with Bank of Industry (BOI) to de-risk loans for women-led SMEs.
“We need to educate people about finances. As we drive this market, we do so for a purpose, I enjoin everyone to be the disciple and the apostles. Getting this market to move is a deliberate action,” he added.
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Economy
NPA Assures of Over N1.27trn Revenue in 2025

By Ubong Ukpong, Abuja
The Nigerian Ports Authority (NPA) on Monday assured that it would take into the coffers massive revenue of over N1.27 trillion in 2025, representing a 40 percent increase from the N894.86 billion it realized in 2024.
This ambitious target, the Authority said, was anchored on sweeping modernization efforts, the full activation of the Dangote Refinery’s marine operations, and the deployment of cutting-edge technology to enhance port efficiency.
Managing Director of the NPA, Abubakar Dantsoho, disclosed this in a presentation during his agency’s budget defence session wih the House of Representatives Committee on Ports and Harbours, where he defended the agency’s 2025 budget estimates and provided insights into its 2024 performance.
“Our 2025 budget proposal is more than figures, it reflects our aspirations for a more efficient, globally competitive port system,” Dantsoho told lawmakers, adding that over 70% of the proposed expenditure will go into capital projects.
For 2024, the Authority surpassed its revenue target of N865.39 billion, posting an actual realization of N894.86 billion.
However, Dantsoho revealed that only N417.86 billion, less than half of the approved N850.92 billion expenditure, had been spent as of the time of reporting.
Despite this, NPA made a record contribution of N400.8 billion to the Consolidated Revenue Fund (CRF) in 2024, nearly double the N213.23 billion remitted in 2023. Of this amount, a staggering N344.7 billion was deducted at source.
“This shows our unwavering commitment to national revenue generation, even when our own operational liquidity is affected,” the NPA boss stressed.
Dantsoho said the projected revenue increase is premised on several key assumptions and developments, including: The full operation of the Dangote Refinery, which alone is expected to draw in over 600 vessels annually through its Single Point Mooring (SPM) system; the commissioning of upgraded terminals at WACT and OMT, which will enhance container traffic; the implementation of automation tools such as the National Single Window, Port Community System (PCS), and Vessel Traffic Management System (VTMS); and increased cargo volumes stemming from global disruptions, including the Russia-Ukraine conflict, which has affected global trade routes.
He said the 2025 revenue is expected to come from the following key sources: Ship Dues, N544.06 billion; Cargo Dues, N413.06 billion; Concession Fees, N249.69 billion; and Administrative Revenue, N73.07 billion
Of the proposed N1.14 trillion total expenditure for 2025, N778.46 billion is earmarked for capital projects.
This investment, he said, will target the revitalization of critical infrastructure, including the Calabar, Warri, and Burutu ports and channels, and enhance towage services, channel depth, and compliance with international security conventions.
“Investments in infrastructure and technology are non-negotiable if we are to stay competitive regionally and globally,” Dantsoho emphasized.
He cited increasing competition from neighboring ports and aging assets across Nigeria’s coastal corridors.
The NPA also intends to address technology gaps by upgrading legacy systems and bolstering cybersecurity, ensuring Nigerian ports meet global standards for digital operations.
“We can say that with timely access to internally generated revenue and capital funds NPA would deliver the kind of impact Nigeria expects,” he said.
Chairman of the Committee, Hon. Nnolim Nnaji, urged the NPA to ramp up performance, improve port infrastructure, and play a greater role in addressing Nigeria’s revenue and unemployment challenges.
Nnaji said the ports remain a critical pillar of Nigeria’s economy, and urged the agency to meet rising expectations despite operational challenges.
“No country can thrive economically without high-performing ports. They are the economic heartbeat of every nation, determining how buoyant a country is through the flow of imports and exports,” Hon Nnaji said.
The committee praised NPA for its performance.
Nnaji stressed that the NPA’s performance has implications beyond maritime activity, noting that increased port output can significantly boost job creation across several sectors.
“The Nigerian Ports Authority is not just a revenue-generating agency, it is a national asset in terms of employment and economic impact.
“We expect to see detailed strategies on how to improve revenue generation and expand employment opportunities through your 2025 budget,” he said.
The lawmaker also pointed to growing interest in the development of new ports across the country but cautioned against neglecting existing port infrastructure.
“As we welcome investment in new ports, we must not abandon the old ones. Maintaining and upgrading our existing ports, both in the Eastern Corridor and the Western axis, is essential to long-term sustainability,” he added.
The Committee called for a clear outline from the NPA on how its 2025 financial plan will address pressing national concerns and reaffirm Nigeria’s competitiveness in regional and global maritime trade.
Economy
Senate Sets N10trn Revenue Target for NCS, Urges Agency to Curb Smuggling, Illicit Drugs

By Eze Okechukwu, Abuja
The Senate, through its Committee on Customs has set a revenue target of N10 trillion for the Nigeria Customs Service for the 2025 fiscal year, instead of the initial N6.584 trillion given to her earlier on while urging the agency to clamp down on smuggling and Illicit drugs.
The Chairman of the Committee, Senator Isah Jibrin (Kogi East), who gave the agency the marching order yesterday in Abuja during the budget defence of the revenue driving agency however commended her for exceeding its 2024 revenue target of N5.
079 trillion.The NCS team led by Deputy Comptroller General, Jibo Bello who represented the Comptroller General presented the 2024 budget performance with a revenue target of N5.
079 trillion, stressing that the proposal was exceeded by over a trillion naira.The Committee, obviously impressed by the performance commended NCS before asking them to go ahead and present the 2025 budget proposal, which the agency tied at N6.584 trillion revenue target with an expenditure of N1.132 trillion.
Following their presentation, members of the Senate Committee on Customs unanimously approved the recommendation of the revenue target of N6.584 trillion and the expenditure of N1.132 trillion for the 2025 financial year.
The Committee will subsequently present the budget proposal to the Senate at plenary most likely this week as the red chamber resumes today after a long recess tied to Eid celebration.
In his final remarks, Senator Jibrin emphasised the need for the NCS to rise up in terms of its surveillance with respect to illicit drugs and smuggling “to ensure that, as much as possible, you should be on top of your game”.
He said there are so many illicit drugs flowing all over the place, which according to him “is contributing to the issue of banditry in Nigeria because most of these guys are on drugs. What I’m saying is that, in addition to your revenue drives, you should also be mindful of some of these other functions.