...National Arts Theatre, TBS, national parks to go

...NNPC justifies 2.3mbpd for 2018 budget

The Federal Government has concluded plans to sell key national assets in a bid to generate sufficient revenue to finance Nigeria’s annual budgets between 2018 and 2020. Director General, Budget Office, Mr. Ben Akabueze, disclosed this yesterday in Abuja at a public hearing organised by the House of Representatives joint committees on finance, appropriation, loans, debts and aids and legislative budget and research on the 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

Akabueze explained that proceeds from sales of the key government assets, which include National Integrated Power Plant (NIPP) plants, National Parks, as well as the National Arts Theatre and Tafawa Balewa Square in Lagos are to be deployed as financing items for the 2018 budget.

President Muhammadu Buhari had, in his budget presentation to the National Assembly, disclosed that the Federal Government is targeting N306 billion from proceeds of privatisation of some non-oil assets by the Bureau of Public Enterprises (BPE) to finance the budget deficit.

“We plan to finance the deficit partly by new borrowings estimated at N1.699 trillion. Fifty per cent of this borrowing will be sourced externally, whilst the balance will be sourced domestically.

The balance of the deficit of N306 billion is to be financed from proceeds of privatisation of some nonoil assets by the Bureau of Public Enterprises (BPE),” the president told the lawmakers. Akabueze disclosed that the power generation plants constructed by the Niger Delta Power Holding Company (NDPHC) under the NIPP on behalf of the government would be sold.

Some of the NIPP expected to be sold include Alaoji Power Station in Abia State, a 1074 Mega Watts (MW) capacity plant; the 561MW capacity Calabar Power Station; the Egbema Power Station, a 338MW simple cycle gas turbine plant and Geregu II Power Station in Kogi State with 434 MW capacity.

Others include the 450MW Ihovbor Power Station in Benin City; Olorunsogo Power Station, a 336MW plant located at Olorunsogo; Olorunsogo II Power Station with combined cycle gas turbine of 675 MW capacity; the Omoku II Power Station in Omoku with 225 MW capacity. Also to be sold are Omotosho II Power Station with 450 MW capacity and Sapele Power Station with 450 MW capacity.

Other items to be sold are non-core assets from the mines and steel sector, houses, and estates. He said proceeds from privatisation of key government assets were factored in the 2018 budget, to finance especially the budget deficit of N2.005 trillion, much of which will be financed through domestic and foreign.

According to the Director General, the country was generating too little revenue; hence it was expedient to borrow. He added that the reverse would be the case if actually there were more revenue collectibles. “We are generating too little revenue, hence we are borrowing.

If we generate enough, borrowing ratio will drop.” Meanwhile, the Minister of State for Budget and National Planning, Hajia Zainab Ahmad, has said the Federal government has proposed to generate additional N1 trillion nonoil revenue to reduce the deficit and loans in the 2018 budget.

Ahmed, who disclosed this in her presentation before the joint committee, explained that this will include an additional N60 billion from duties on cigarettes and alcohol and N2.5 billion from “special taxes” on luxury cars.

Giving details of the revised MTEF/FSP, the minister said: “When the FEC approved the MTEF/FSP, it constituted a committee chaired by the Minister of Finance, Mrs. Kemi Adeosun, which was tasked with identifying additional sources of about N1 trillion revenue to cut the 2018 budget deficit and new borrowings.

The outcome of the work of the committee necessitated a revision of the MTEF which also formed the basis of the 2018 budget proposal.” According to her, the adjustments include “N710 billion to be generated from the restructuring of government’s equity in all the Joint Venture oil assets; and N320 billion additional revenues from revision of terms to improve government’s take in the production sharing contracts.”

Speaking further, Ahmad disclosed that also expected are N350 billion as additional Company Income Taxes expected to result from the Voluntary Assets and Income Declaration Scheme (VAIDS); N100 billion from improvements by the FIRS in the collection of Value Added Tax (VAT); and N2.5 billion from “special taxes on insurance of luxury cars as well as surcharge on luxury goods.”

However, chairman of the joint committee, Hon, Babangida Ibrahim had frowned at the absence of five government agencies at the session.

Meanwhile, the Nigerian National Petroleum Corporation (NNPC) has said the Federal Government’s 2.3 million barrels per day crude oil projection for the 2018 Budget is achievable and realistic. Group General Manager (GGM), Corporate Planning and Strategy, Mr. Bala Wunti, made the submission at the hearing.

Wunti said the current production capacity for the country was more than 2.3 million barrels per day, noting, however, that due to the insecurity in the Niger Delta, the full production capacity has not been achieved over the years. “The 2018 crude oil national production projection for Joint Ventures, Modified Carry Arrangement or External Financing, Production Sharing Contracts, Independents, Marginal Fields and Service Contracts is about 2,298,000 barrels per day,” Wunti said.

He disclosed that the 2018 price projection on the long term price assumption was based on price scenarios of $35 (low), $45 (medium) and $55 (high), stressing that most price forecasting agencies thought that the medium price scenario had the highest probability of occurrence which the 2018 budget was hinged upon. “Consequently, a conservative price projection of $45 per barrel was used as benchmark for crude price for 2018 budget,” Wunti stated.

Giving details on the 2017 performance of crude oil production from January to October, Wunti averred that the average performance stood at 1,885,000 barrels per day which is equivalent to about 86 per cent of the budgeted 2.2 million barrels per day. According to him, performance shortfall was mostly due to Niger Delta security related factors and vandalism of key export infrastructure, including Trans-Forcados Pipeline (TFP), Forcados Oil Terminal (FOT) export line, Nembe Creek Trunk Line (NCTL) and Trans Niger Pipeline (TNP). He said robust engagement of stakeholders in the Niger Delta by the Federal Government and the NNPC had led to improved production in recent months, disclosing that sustained peace in the Niger Delta, price recovery and improved Joint Venture production would help to support government’s revenue aspirations.

Wunti noted that the average crude oil price performance between January and October 2017 was $52.49 barrels per day, an equivalent of 18 per cent over performance of budget price benchmark of $44.50 barrels per day. According to him, the 18 per cent above budget benchmark was due to stability in the crude oil market and various geopolitical dynamics around the world.

He observed that the outlook was reassuring, given the positive global economic growth and the improved compliance with the Organisation of the Petroleum Exporting Countries’ (OPEC) production cut, adding that the incident of oversupply remains an issue.

https://newtelegraphonline.com/2017/11/fg-well-sell-power-plants-houses-fund-budget/

I thought bubu said they would fund the budget with stolen funds...........they just want to sell everything before the next government come into power smh

The yeye fowl president should act fast and sell Nigeria all together.

What is stopping Mohomodu Buhary from selling the fleets of presidential aircraft to raise fund?

They shall want to sell these remaining assets,what happened to the recovered loots,abi which kain country have i found my self,see if anyone think any good thing can come from these set of our current politician then welcome to disney junior

They sha want to sell these remaining assets dondondondon,what happened to the recovered loots,abi which kain country have i found my self,see if anyone think any good thing can come out from these set of our current gangue of politicians then welcome to disney junior,awon onufia dede,after a while one oloriburuku mohammed will be talking about how Jonathan was our problem,OSHINBAJO wey be pasito stand there they look like Eran oriresi.the simple one they get they'll be using it in search of one crazy one wey no loss.ITZ TIME TO FLUSH THESE PEOPLE OUT

Firefire:
The yeye fowl president should act fast and sell Nigeria.

The day Buhari go sell Nigeria give me my share, wetin I go flex life for Congo Brazzaville eeeh. Make d day just dey come makai dey strategize

buhari is not fit to be a president.

Fellow Nigerians,

This current administration told Nigerians that 2017 budget will be funded with the 'recovered loots'

Premium Times - "We will use ‘recovered loots’ to finance 2017 budget – Buhari" https://www.premiumtimesng.com/business/245675-will-use-recovered-loots-finance-2017-budget-buhari.html

Punch - "FG to fund 2017 budget with N258bn recovered loots" http://punchng.com/fg-finance-2017-proposed-budget-n250bn-recovered-loots/

Now the same known professional liars and career rogues now planning to auction our common wealth to fund same budget, while re-looting the covered loots.

This is apart from the various foreign loans for same budget funding, mind you the global price of crude oil has gone beyond the budget benchmark.

Nigerians don't yet understand the magnitude of corruption going on in this administration. Am afraid, before you know, it will be too late.

APC, Party of professional liars and career rogues.

Make una kuku sale everything to finance the budget........How do we got here in the first place?

Yes

That's not bad if properly looked into

Some people will just comment as if they know all

For government to think of it

All stake holders have been consulted

And a decision was reached

Wailers cry me a river

dikeigbo2:
Make una kuku sale everything to finance the budget........How do we got here in the first place?

PDP 16years

Most especially the last 6years before this government

Firefire:
Fellow Nigerians,

This current administration told Nigerians that 2017 budget will be funded with the 'recovered loots'

Premium Times - "We will use ‘recovered loots’ to finance 2017 budget – Buhari" https://www.premiumtimesng.com/business/245675-will-use-recovered-loots-finance-2017-budget-buhari.html

Punch - "FG to fund 2017 budget with N258bn recovered loots" http://punchng.com/fg-finance-2017-proposed-budget-n250bn-recovered-loots/

Now the same known professional liars and career rogues now planning to auction our common wealth to fund same budget, while re-looting the covered loots.

This is apart from the various foreign loans for same budget funding, mind you the global price of crude oil has gone beyond the budget benchmark.

Nigerians don't yet understand the magnitude of corruption going on in this administration. Am afraid, before you know, it will be too late.

APC, Party of professional liars and career rogues.

My brother is always on vibrating mood

BeeBeeOoh:
The day Buhari go sell Nigeria give me my share, wetin I go flex life for Congo Brazzaville eeeh. Make d day just dey makai dey strategize

Their Oga is here present

High Chief Wailer

sarrki:
Yes

[s]That's not bad if properly looked into

Some people will just comment as if they know all

For government to think of it

All stake holders have been consulted

And a decision was reached
[/s]
Wailers cry me a river

By the time you are back from your journey and realized what has happened to your future, am sorry it might be ICHABOD.

Firefire:


By the time you are back from your journey and realized what has happened to your future, am sorry it might be ICHABOD.

Try and breath gently

It will help the nervous system

sarrki:


My brother is always on vibrating mood

Please, be more concentrated on your ass-licking...

Firefire:



Please, be more concentrated on your ass-licking...

The government knows better

sarrki:
Yes

That's not bad if properly looked into

Some people will just comment as if they know all

For government to think of it

All stake holders have been consulted

And a decision was reached

Wailers cry me a river

Na person born this one?
Chai!

sarrki:


The government knows better

Which government knows better?

I hope you are not referring to the same "Super Clueless" government of Buhary?

sarrki:


Their Oga is here present

High Chief Wailer

Talk true sey u go happy if e happen

johnbuck81:
buhari is not fit to be a president.

Never was.
Never will be.
Ebola Owu and Asiwaju Asiwere of Yoruba politics knew this and still imposed him on us. Is that how to show love for one's country


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Those people who mentioned me in an earlier comment talking about privatising the Nigerian refineries should bookmark this news because soon , you will reference this

they ask for privatization, Government is actually selling to fund economy and they have started screaming blood all over again

sarrki:
Yes

That's not bad if properly looked into

Some people will just comment as if they know all

For government to think of it

All stake holders have been consulted

And a decision was reached

Wailers cry me a river

BeeBeeOoh:
Talk true sey u go happy if e happen

We are selling it as a way of privatization

So to me I didn't see it that bad as people are trying to paint it

If it will work well and sold to good and capable people its ok

sarrki:
PDP 16years
Most especially the last 6years before this government

16 years with Ebola Owu who packaged Bubu ruling for half?
The five years of Jonathan when prosperity reigned and vision-less Bubu is only continuing the laudable projects of that era?
Please, who did this to you?
Oni tohun o ni ku're, walahi talahi! - whoever did this to you will not die a better death.
Chai. Let me cry on your behalf.


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nawtyme:
Previous Govts Initiated ‘Most Of The Things This Administration Is Doing’ – Adesina


A majority of the projects the Muhammadu Buhari administration is working on was inherited from previous administrations, the Special Adviser to the President on Media and Publicity has said.

Mr Femi Adesina said this when he appeared on Channels Television’s special Independence anniversary programme on Sunday.

“Most of the things this administration is doing – 60 to 70 percent of them – were initiated by previous governments,” he said.

“That shows you that in the past a government will come and say ‘this is not our project’ And it will discard what was being done and start fresh ones.”

As a result, Mr Adesina said there are many half and quarter-completed abandoned projects.
But rather than abandon the project, he explained that the current administration will complete it.

An example is the Abuja-Kaduna rail project which the Presidential aide said was up to maybe 60 to 70 percent complete when the last administration left.

“This administration came, completed it and inaugurated it. Then you will still find some people shouting, ‘they are claiming credit for what the past administration started,” he said.

“It shows there is a mentality in Nigeria that makes governments not want to complete what previous governments have started. But this administration is not going that way at all, it is just doing what needs to be done for the good of the country.”

Another example is the Mambilla power project, which has been in the works since 1972, but has now started taking shape under this administration.

In going about its activities, Mr Adesina said the Federal Government follows due process in the awarding of contracts, stressing that projects worth above N50m will require the permission of the Federal Executive Council before such a contract can be awarded.

“One thing this government does scrupulously is to follow due process in the award of all these contracts and projects.

“Anything that is above N50m must come to the Federal Executive Council. Before the FEC will endorse any project or contract, the Bureau of Public Procurement must have signed off on that project that it is worthy to be done and the projections are good, that this government does not joke about.”

https://www.channelstv.com/2017/10/01/previous-govts-initiated-most-of-the-things-this-administration-is-doing-adesina/

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sdindan:


Na person born this one?
Chai!

When elderly people are talking stop interfering

They keep selling, yet no improvement.

sarrki:


PDP 16years

Most especially the last 6years before this government

May your son sale off all you laboured as a man,....just say amen as a sincere man you are.

HtwoOw:
they ask for privatization, Government is actually selling to fund economy and they have started screaming blood all over again

They are naturally wired that way

This is the result of lack of creativity......

A brain drain government without initiatives and ideas to run a nation.

"The last option for any human is usually to sell and declare bankrupt. If we are at that junture now, we should prepare for the worst is yet to come"

Forget what you read here and there on social media and the fighters therein, the nation is bankrupt.

HtwoOw:
they ask for privatization, Government is actually selling to fund economy and they have started screaming blood all over again

Show us what you said when the 36 state governors and Jonathan agreed to deregulate the fuel sector and remove subsidy, which Bubu has not only removed quietly but also collecting fuel TAX from us.


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