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Economy

FG Releases N650bn for 2019 Capital Budget

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By Mathew Dadiya, Abuja

The Federal Government has disclosed that it has so far released the sum of  N650 billion  for capital projects in the 2019 budget.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed disclosed this on Wenesday, while speaking to State House correspondents alongside her colleagues in Information and Culture Ministry, Lai Mohammed and Minister of State for Transportation, Gbemi Saraki after the weekly Federal Executive Counc (FEC) meeting presided over by Vice President Yemi Osinbajo in the Presidential Villa, Abuja.

The minister also said that additional N250 billion would be released by December 2019 to bring the total releases for capital projects to N900 billion.

Mrs Ahmed explained that the figure had already surpassed the N600 billion President Muhammadu Buhari directed to be released as of October.

Ahmed also recalled that the government had issued a number of Sukuk Bonds targeted at generating money to fund road projects.

She, however, noted that not all roads were federal-government roads, adding that the majority of bad roads belonged to the various state governments.

While responding to the excuse given by the Minister of Works and Housing, Mr Babatunde Fashola, that poor funding was the reason road projects were not executed at a faster pace, Ahmed explained that much as the government faced revenue challenges, works, housing, power and transportation had so far received the highest releases.

“Works is always on the priority list; housing is always funded, same is transportation and power, though we have revenue challenges”, she said.

The minister while responding to the fund releases for roads said: “It gives me an opportunity to state that the Minister of Works and Housing has a proposed budget of N247 billion for the year 2020 and the greatest component of this budget is the fixing of Nigerian roads. It is true that we are not able to fund the budget 100% but whenever we release funds for capital projects, the Ministry of Power, the Ministry of Works and Housing is always the priority and also the Ministry of Transport. 

“Our fiscal space is tight, resources are limited because revenues are on the performing but at the time we have resources, funds to release, the highest proportion goes to Power, Transport, World and Housing. And also we have introduced some measures that have seen private sector participants getting involved in road construction. One of these measures is the Road Infrastructure Task Credit Scheme that Mr President approved by Executive Order early this year so far we have 17 companies that are carrying out 19 roads across the six geo-political zones. 

“I also want to remind you that for the past two years, we have issued Sukuku bonds. In 2017, it was for the construction of 25 roads. In 2018, 23 roads and there is also another one that is being processed. 

“We have a lot of roads in the country but not every road you see is a responsibility of the Federal government. The major arterial roads are the ones that are the responsibility of the federal government. 

“Majority of the roads in the country are within the purview and responsibility of States as well as local governments. 

“Have we done enough? No, not yet, that is why we are trying to do more including raising special funds to make sure that roads and such other infrastructure are being addressed. 

“In October, when the President was submitting the 2020 budget to the National Assembly, he had indicated that he had given a directive that we should release N600 billion for capital expenditure, we have already released more than that, the target for us is to be able to release up to N900 billion by December 2019. But right now we are at about N650 billion capita release so far.”

Meanwhile, the Finance Minister disclosed that Nigeria has increased its shares at the International Bank for Reconstruction and Development by $50.6million.

Ahmed said the country accepted the offer since March this year and briefed the cabinet during the Wednesday.

With the development, she said Nigeria’s rating before global finance institutions had improved.

Also the minister of State, Transportation, Gbemi Saraki said that FEC approved N1.7 billion for the construction of a jetty in Bonny Island, Rivers State.

Economy

Value Addition is new Standard in Mining Operations – Alake

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The Minister of Solid Minerals Development, Dr Dele Alake has declared value addition as the new indispensable standard for mining operations in the country.

Alake made the declaration in a statement issued by his Special Assistant on Media, Mr Segun Tomori, on Tuesday in Abuja.

The minister had earlier said that the federal government had resolved to ensure compliance to value addition before permitting investors to operate.

He said that his seven-point agenda for the ministry had placed the mining sector on the global front burner since assuming office, which had generated renewed interest from the international community in Nigeria`s mineral resources.

According to the statement, the minister lauded a mining company, African Natural Resources and Mines Ltd.

(ANRML), during an inspection tour in Kaduna State, for its 600 million dollar facility dedicated to the mining and processing of magnetite iron-ore.

He described the move as in line with the government`s resolve for value addition, which is especially apt given President Bola Tinubu`s quest to develop the solid minerals, to boost Nigeria`s economic profile and to meet the global upsurge in energy transition.

“The company aligns with our vision of value addition and beneficiation through its processing of iron-ore, and I urge other mining companies to take a cue from them, “ he said.

He reiterated the government`s commitment to abstain from granting mining licenses to companies that lack the necessary plans for value addition.

The minister acknowledged that resilience, courage and laying a solid foundation were critical in contributing to the company success.

He added that such factors also serve as guidelines for President Tinubu`s administration in its efforts for economic transformation.

“ We have set our minds in this administration and invariably in Nigeria to achieve success, that is why Mr President is restructuring the economy.

“When this company (ANRML) started seven years ago, we saw one of the foundations through the video documentary, the amount of concrete that went in to erect a foundation, just to carry a giant edifice.

“That is what we are going through. When we get through the gestation period, the results will manifest, and it will herald prosperity, “he said.

The minister had stated that no license would be granted to companies wishing to enter the mineral sector without presenting a plan for value addition, such as processing and refining which has multiplier effect on the economy. (NAN)

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Economy

Life Insurance Records 95% Net Claims in Q4 2023-NAICOM

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The National Insurance Commission (NAICOM) says Life insurance business recorded about 95 per cent net claims of the total claims in the fourth quarter of 2023.

A report by NAICOM in Abuja on Tuesday hinted that the record was due to the direct reflection of the ongoing regulatory measures by the Commission regarding claims settlements.

NAICOM said the insurance market average stood at about 71.

4 per cent of the N536.
5 billion gross claims reported at the close of the fourth quarter.

The Commission said the market also recorded retention of about 87.7 per cent for the life business, 54 per cent for non-life while the aggregate market average retention stood at 66.

7 per cent for the period.

It showed that the insurance industry sustained its progressive trend of positive market performance at the close of 2023 fourth quarter.

According to NAICOM, the insurance market recorded a milestone growth to close at N1.003 trillion, representing about 27 per cent growth compared to the N790 billion recorded in 2022.

”Major growth drivers in the non-life segment of the market were oil and gas and fire Insurances contributing 27.3 per cent and 24.1 per cent respectively.

”In a direct reflection to the “no-premium no-cover” policy of the Commission, the outstanding premium continues to decline.

”The premium posted 1.6 per cent as outstanding of all the premiums generated in the market during the period.

”Statistics also shows that the market recorded total assets of about N2.67trillion and capitalisation of N851billion in 2023,” NAICOM said. (NAN)

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Economy

No Mining License without Mineral Value Addition Plans-Alake Warns

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The Minister of Solid Minerals Development, Dr Dele Alake has warned that no mining license would be issued to prospective investors without requisite plans for value addition on minerals.

Alake gave the warning in a statement  by his Special Assistant on Media, Segun Tomori on Tuesday.

He said the Federal Government had resolved to ensure compliance before permitting investors to operate.

He said that his Seven -Point Agenda for the ministry had placed the mining sector on global front burner since assuming office, which had generated renewed interest from the international community in Nigeria’s mineral resources.

He said the support of the executive and the legislature had enabled the ministry to showcase the solid minerals sector globally, resulting in his election as the Chairman of the Africa Minerals Strategy Group (AMSG) at the Future Minerals Forum in Riyadh, Saudi Arabia.

According to him, with the pact that led to the formation of the AMSG, there is now unity of purpose on the African continent regarding the issue of local value addition.

“We are no longer going to allow anybody or license any company that wants to go into the mineral sector without giving us a plan for local value addition,  like processing, refining and this has a multiplier effect on the economy.

“It instantly generates employment rather than a few people carting away lithium, gold, and the likes to other countries to sell.

“These minerals must now be processed in Nigeria, creating more value and beneficiation for local communities where they are sourced, ” he said.

Reports says that the minister had earlier received members of the House Committee on Solid Minerals who were on oversight visit to his office.

The minister commended the lawmakers for their support in repositioning the mining sector, stressing that boosting the economic profile of Nigeria required joint task by both the executive and legislature.

He acknowledged the significant contribution of sub-nationals to mining development, emphasising that state chairmen of  Mineral Resources and Environmental Management Committee (MIREMCO) and five committee members were nominated by state governments. (NAN)

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